Cathie Wood Invests $5M in AMD Stock Before Q3 Results; Ark Purchases Another Chipmaker on Friday
Ark's ARK Autonomous Technology & Robotics ETF purchased over $5 million worth of Advanced Micro Devices (AMD) shares, ahead of the company's upcoming third-quarter results. The fund also bought shares of Taiwan Semiconductor Manufacturing Co. (TSMC).
In a notable move, Ark's ARK Autonomous Technology & Robotics ETF (CBOE: ARKQ) acquired a significant number of shares in Advanced Micro Devices, Inc. (NASDAQ:AMD) on Friday. The purchase amounted to 54,289 shares, which, based on AMD's closing price of $96.43 in the session, would be valued at approximately $5.24 million.
Furthermore, Ark's ARKQ also made a purchase of Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) shares on the same day. The exchange-traded fund added 3,046 TSMC shares, with an estimated value of around $261,926. It is worth noting that TSMC is the largest independent pure-play foundry responsible for designing chips for major global tech corporations such as Apple, Nvidia, and AMD.
While TSMC reported a decline in third-quarter earnings and revenue compared to the previous year, the figures surpassed expectations. This decline was attributed to weak end-market demand.
The upcoming release of AMD's third-quarter results on Tuesday after the market closes is of significant importance. Analysts anticipate the company to report earnings per share of $0.64, a decrease from $0.67 in the same quarter of the previous year. Additionally, revenues are expected to have declined by 4.40% year-over-year, amounting to $5.37 billion.
John Vinh from KeyBanc predicts that AMD will achieve results in line with or slightly surpassing expectations and issue guidance that is in line with or slightly lower than anticipated. He believes that the chipmaker will benefit from an improvement in PC and server demand. However, Vinh also notes that there may be a slight delay in the ramp of the MI300A at El Capitan, which could pose a risk to the guidance.
In premarket trading on Monday, AMD's stock rose by 1.25% to reach $97.64, while TSMC saw a 1.16% increase to reach $86.99, according to data from Benzinga Pro.
In other news, Cathie Wood, the founder of Ark Invest, has recently divested over $6 million from the Grayscale Bitcoin Fund. This move comes as Bitcoin experiences a rally of approximately 14%. Interestingly, Wood has simultaneously accumulated $12.4 million worth of a crypto-linked stock, highlighting her strategic investment decisions.