Tech stocks are on the decline once more, but Ark’s chief investment officer, Cathie Wood, is still making purchases.
It’s becoming a bit challenging for Wood to repeat her market-moving successes, particularly after the notable performance of 2020. Until recently, she had struggled to maintain that momentum into 2025.
The market slump is perhaps a chance for Wood, as she seized the opportunity on Monday to bolster her holdings. She increased her stakes in companies like Broadcom, Advanced Micro Devices, and Figma on the first trading day of the week. Let’s delve deeper into her latest investment activities.
1. Broadcom
Over the last five years, Broadcom’s stock has risen sevenfold, although it’s down 20% from its recent peak two months ago. As a provider of semiconductor and technology infrastructure solutions in the AI era, Broadcom remains relevant. The company argues that almost all global internet traffic connects through its technologies, which indicates potential for growth.
Although fiscal year 2025 didn’t meet expectations, analysts are optimistic about 2026, predicting a reduction in revenue growth rates from 44% to 24%. Experts on Wall Street anticipate sales and profits could surge by over 50% in the new fiscal year, presenting an opportunity for Broadcom.
Today’s changes
(-1.48%) $-4.89
current price
$325.45
Key data points
Market capitalization
$1.6 trillion
daily range
$314.50 -$328.27
52 week range
$138.10 -$414.61
volume
857K
average volume
31M
gross profit
64.71%
dividend yield
0.73%
We might interpret stock affordability differently. Currently, Broadcom trades at nearly 50 times its adjusted earnings. Looking ahead to the next four quarters, that number could drop to 32. So, I wonder—are these stocks worth holding onto until 2027? Broadcom’s earnings for the upcoming year are projected at 23 times the target.
The situation appears promising. Broadcom has consistently outperformed market expectations over the last year, despite a slowdown in sales growth. I’m curious—what might happen as the company regains momentum?
In just three months, its earnings projections have risen from $9.29 to $10.32 per share. Predictions for next year range between $12.50 and $14.52. Given the current focus on AI, Broadcom seems undervalued, not just because the stock has cooled off recently.
Today’s changes
(8.81%) $17.32
current price
$213.92
Key data points
Market capitalization
$321 billion
daily range
$206.51 -$216.72
52 week range
$76.48 -$267.08
volume
3.5M
average volume
36M
gross profit
45.99%
2. Advanced Micro Devices
AMD stock has seen a drop of 25% since its peak in October. Similar to Broadcom, AMD is viewed as a key player in the AI landscape. With its central processing units (CPUs) and graphics processing units (GPUs), the company is well-positioned to meet growing processing needs.
In its last quarter, AMD’s revenue grew by over 37% across its data center and client/gaming sectors. While the guidance for the upcoming quarter appears underwhelming, analysts remain optimistic about a return to accelerated growth next year. AMD’s current 30x forward price/earnings ratio might not seem very attractive, but it’s worth noting that it could drop below 20x next year, which raises some intriguing questions. Unless, of course, there’s a significant downward adjustment in demand forecasts, which seems unlikely right now.
Today’s changes
(10.83%) $2.68
current price
$27.43
Key data points
Market capitalization
$13 billion
daily range
$24.74 -$27.52
52 week range
$19.85 -$142.92
volume
23M
average volume
10M
gross profit
82.43%
