Cathie Wood Cuts AMD and Puts $53 Million Into Nvidia

This article first appeared on GuruFocus. Cathie Wood’s ARK Invest trimmed its stake in Advanced Micro Devices Inc. (AMD, Financials), the chipmaker that is Nvidia’s rival in the race to build artificial intelligence chips and data center processors.On Aug. 28, ARK sold 156,286 shares of AMD for approximately $72.8 million at the closing price on that day. Meanwhile, the company bought 243,707 Nvidia shares for over $53 million. The linked transactions make the move more remarkable.ARK seems to be doubling down on AI infrastructure. Instead, the firm is parking money between chipmakers as investors assess Nvidia’s commanding position against AMD’s ability to get more share in accelerators and server CPUs.AMD is growing fast from a smaller basis, with strength in its data center business, and ongoing demand for its Instinct accelerators and EPYC chips.Still, the company has to grapple with turning that growth into lasting market-share victories against Nvidia, which remains the leader in AI computing.ARK did not specify a cause for the trades, thus the sale shouldn’t be seen as an official bearish call on AMD. The next trigger will be whether ARK trims more AMD in upcoming trade disclosures or starts to rebuild its holdings.