Cathie Wood Goes Bargain Hunting. 1 Dirt Cheap Artificial Intelligence (AI) Chip Stock She Just Bought (Hint: It's Not Nvidia)
Cathie Wood has quietly been building a position in one of Nvidia's chief rivals in the chip space.
Throughout her tenure as CEO and chief investment officer of Ark Invest, Cathie Wood earned her reputation as an investor by making big bets on emerging technology themes. Some of Ark's largest positions are in high-growth, and arguably speculative names such as Tesla, Coinbase, Palantir Technologies, and Archer Aviation.
While the companies above are each disruptive in their own right and stand to benefit from the prospects of artificial intelligence (AI), none trade for a particularly bargain valuation. Instead, recent buying activity at Ark suggests Wood has her eyes on the AI chip market. Yet, interestingly, the savvy investor seems to be interested in an alternative opportunity to chip all-star Nvidia.
Between April 22 and May 1, Wood scooped up more than 212,000 shares of Advanced Micro Devices (NASDAQ: AMD). Let's explore what may have influenced this decision and assess why now looks like a lucrative time for investors to follow Wood's lead.
