An influential growth investor is continuing to make strategic moves.
Cathie Wood, co-founder and CEO of Ark Invest, is a well-known stock picker with a penchant for advanced technology. As the holiday-shortened trading week kicked off, she eyed potential investments, especially as many growth stocks experienced a decline on Tuesday.
This week, she expanded her fund’s positions by adding shares in Advanced Micro Devices (AMD +5.79%), BYD (Baidi +2.92%), and WeRide (WRD +2.77%) on Tuesday. Let’s dig a little deeper into these three stocks.
Today’s changes
(5.79%) $13.44
current price
$245.36
Key data points
Market capitalization
$378 billion
daily range
$235.78 -$252.89
52 week range
$76.48 -$267.08
volume
2M
average volume
41M
gross profit
44.33%
1. Advanced Micro Devices
AMD was one of the few tech stocks to see gains on Tuesday, though it’s down 13% from its high three months ago.
While AMD was late to the artificial intelligence (AI) party, its segment catering to data centers equipped with AI chips started to gain traction in late 2024, continuing to grow last year. Here’s a quick look at the year-over-year growth in the last seven quarters:
- Q1 2024: 2%
- Q2 2024: 9%
- Q3 2024: 18%
- Q4 2024: 24%
- Q1 2025: 36%
- Q2 2025: 32%
- Q3 2025: 36%
Image source: Getty Images.
However, growth didn’t maintain its pace last spring, largely due to the impact of tariffs and trade restrictions affecting AMD’s market in China. During the second quarter of the previous year, the company faced an $800 million hit because it couldn’t sell its data center GPU chips there. And the challenge seems ongoing. Analysts predict only a 26% rise in AMD’s sales for the upcoming fourth quarter.
On a positive note, Wall Street analysts anticipate a 32% gain for AMD through 2026, with revenue forecasted to increase by 65%. This suggests that while AMD may not be bargain-priced at the moment—its forward P/E ratio is 35—it does possess significant upside, especially when compared to AI leader Nvidia (NVDA +1.91%), which has generally outpaced AMD historically.
Today’s changes
(2.92%) $0.36
current price
$12.67
Key data points
Market capitalization
$136 billion
daily range
$12.63 -$12.79
52 week range
$11.53 -$20.05
volume
1.4M
average volume
1.8M
gross profit
23.15%
dividend yield
1.49%
2. BYD
Last year, BYD made headlines by selling more electric vehicles (EVs) globally than Tesla (TSLA +1.85%). However, this doesn’t automatically make BYD a larger stock in the EV industry compared to Tesla. BYD focuses on low-cost, mass-producible vehicles. Its total sales of $121 billion surpass Tesla’s $96 billion overall but Tesla’s market cap of around $1.4 trillion translates to it being valued about twelve times more than BYD.
Despite this growth edge, the market hasn’t fully acknowledged BYD’s performance. Its stock is up just 8% over the last year—hardly outpacing the broader market.
Interestingly, Wood elected to increase her position in BYD instead of Tesla, even though Tesla is the biggest holding in all of Ark’s ETFs.
Today’s changes
(2.77%) $0.23
current price
$8.71
Key data points
Market capitalization
$2.7 billion
daily range
$8.61 -$8.85
52 week range
$6.03 -$44.00
volume
2.6M
average volume
5.3M
gross profit
32.99%
3. WeRide
WeRide, a Chinese company focused on self-driving technology, seems to be gaining traction. The self-driving sector has recently seen a lot of excitement, and it looks like the timing for movement is crucial.
Currently, WeRide holds licenses to operate self-driving vehicles in eight countries. Its revenues are on the upswing and are predicted to double in the next three years. While it might not reach profitability until after 2028, Wood seems willing to wait, as she has faith in both the company and the industry.
Rick Munarriz has no position in any stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Nvidia, and Tesla. The Motley Fool recommends BYD. The Motley Fool has a disclosure policy.
