AMD Stock: Cathie Wood Buys $28 Million After Earnings Crash

TLDR

Table of Contents

ARK Invest purchased 141,108 AMD shares valued at $28.2 million following a 17% stock decline
AMD crashed to $200.19 despite reporting Q4 earnings of $1.53 per share and $10.27 billion revenue
The chip maker’s Q1 guidance of $9.5-$10.1 billion beat consensus but disappointed investors
ARK Innovation ETF bought the most shares at 76,518, leading the five-fund buying spree
AMD recovered 2.3% in after-hours trading as investors reassessed the selloff

Cathie Wood saw opportunity where others saw disaster. Her ARK Investment Management funds bought 141,108 AMD shares on Wednesday after the stock suffered its worst day since 2017.

Advanced Micro Devices, Inc., AMD

The five ARK ETFs spent $28.2 million on the chip maker at closing prices. AMD had plummeted 17% to $200.19 that same day.

The crash came despite AMD beating Wall Street estimates. The company posted adjusted earnings of $1.53 per share on revenue of $10.27 billion, up 34% year-over-year.

Data center revenue climbed 39% to $5.4 billion. The MI300 AI accelerator and Instinct and EPYC processors drove the growth.

Guidance Fails to Impress

The problem wasn’t the results. It was the outlook.

AMD forecast Q1 revenue between $9.5 billion and $10.1 billion. The $9.8 billion midpoint topped the $9.39 billion consensus estimate.

But investors wanted more. AMD shares had surged over 40% from early October through Tuesday’s earnings report.

The guidance included approximately $100 million in Instinct MI308 sales to China. Still, it wasn’t enough to justify the valuation multiple.

ARK Innovation ETF led the buying with 76,518 shares. ARK Next Generation Internet ETF added 20,532 shares. ARK Autonomous Technology & Robotics ETF picked up 24,262 shares.

ARK Blockchain & Fintech Innovation ETF bought 10,811 shares. ARK Space & Defense Innovation ETF acquired 8,985 shares.

Market Response and Recovery

Other investors followed Wood’s lead. AMD stock jumped 2.1% to $204.48 in Thursday’s premarket trading.

By press time, shares had gained 2.3%. The stock remains down 6.5% year-to-date.

The ARK funds also purchased shares in Tesla, Tempus AI, GeneDx, CoreWeave, and several other tech companies on Wednesday.

Wood’s aggressive tech betting strategy paid off in 2025. ARK Innovation ETF gained 35% while ARK Next Generation Internet ETF rose 37%.

Both funds crushed the S&P 500’s 16% return. The Next Generation Internet fund has now beaten the market three years running.

Analyst Perspective

Analyst Bill Maurer sees potential in the dip. He expects rising analyst estimates to improve AMD’s forward valuation relative to Nvidia.

“AMD reported a solid quarter on Tuesday and gave decent guidance for the current period,” Maurer said. “This post-earnings drop may be a good time to look at AMD shares.”

The $28.2 million purchase represents a vote of confidence from one of tech’s most prominent investors. Wood built her reputation on early bets in disruptive technology companies.

AMD shares traded at $200.19 at Wednesday’s close, down from highs above $240 earlier in the week.

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