Ark Invest Shifts $23M Into Nvidia (NVDA) While Dumping AMD (AMD) and Palantir (PLTR)

Key Takeaways

Table of Contents

Ark Invest accumulated 101,356 shares of Nvidia valued at approximately $22.8 million through several ETF vehicles
The investment firm divested roughly $13.1 million worth of AMD stock, despite the chip maker’s impressive 136% year-to-date gains
Ark reduced its stake in Palantir, offloading shares valued at around $3.8 million
Analyst consensus remains bullish on AMD with a Strong Buy rating and average target price of $651.32, suggesting 28% potential appreciation
AMD’s data center segment delivered 107% year-over-year growth in the second quarter, with accelerated expansion projected through 2027

On August 17, Cathie Wood’s Ark Invest executed a notable portfolio restructuring, substantially increasing its Nvidia holdings while simultaneously reducing stakes in Advanced Micro Devices and Palantir Technologies.

Through the ARKK ETF specifically, Ark acquired 101,356 shares of Nvidia at a closing price of $225.01 per share. This single transaction represented approximately $22.8 million in capital deployment. Additional Nvidia purchases were executed across ARKF, ARKQ, ARKW, and ARKX funds.

NVIDIA Corporation, NVDA

This strategic acquisition coincides with Nvidia’s aggressive expansion in artificial intelligence infrastructure. The company recently locked in 4.25 gigawatts of data center capacity located in Ohio designated for OpenAI operations. Industry analysts estimate this facility alone could generate between $150 billion and $200 billion in revenue for Nvidia per hardware generation cycle.

Additionally, emerging reports indicate Nvidia and OpenAI are renegotiating their financial arrangements. Nvidia’s exposure under the agreement may decrease from $250 billion to below $120 billion, though OpenAI’s aggregate computing obligations extending through 2030 could still translate to approximately $600 billion worth of Nvidia infrastructure.

AMD Stake Reduction Despite Exceptional Performance Metrics

Simultaneously with its Nvidia accumulation, Ark divested 25,917 shares of AMD valued at roughly $13.1 million through its ARKF, ARKQ, ARKW, and ARKX portfolios.

AMD has demonstrated remarkable momentum throughout the current fiscal year. Shares have surged 136% year-to-date, including a 7% appreciation over the preceding five trading sessions. The company’s data center division posted 107% year-over-year revenue growth during the second quarter.

Chief Executive Lisa Su projected server revenue could expand by more than 80% year-over-year throughout the latter half of fiscal 2026. Management also anticipates data center sales will more than double by 2027.

Wood’s divestment hasn’t dampened Wall Street’s enthusiasm for AMD. Bank of America’s Vivek Arya maintains a Buy recommendation with a $620 price objective, positioning AMD as the most competitively advantaged CPU supplier in the current marketplace.

Phillip Securities’ Yik Ban Chong takes an even more optimistic stance with a $755 target. His thesis incorporates expectations that Anthropic will implement 2 gigawatts of AMD’s MI450 GPU technology beginning next year, potentially contributing $30 billion in incremental revenue.

The Street consensus for AMD reflects a Strong Buy rating from 26 analysts, with a mean price target of $651.32—approximately 28% above present trading levels.

Palantir Stake Also Downsized

Ark simultaneously liquidated 22,023 shares of Palantir through the ARKF ETF. Based on Palantir’s $172.55 closing price, the transaction value totaled approximately $3.8 million.

Palantir has distinguished its artificial intelligence strategy by developing software platforms compatible with diverse AI models rather than constructing proprietary systems. This methodology sidesteps substantial infrastructure capital requirements while maintaining exposure to AI sector expansion.

Additional portfolio activity on August 17 included Ark’s purchases of Cloudflare and Tempus AI shares, alongside complete exits from Roblox and Twist Bioscience positions.

Wood’s AMD divestment likely represents tactical portfolio rebalancing favoring Nvidia concentration rather than signaling pessimism regarding AMD’s artificial intelligence growth trajectory.

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