ARK Invest Shifts $190 Million from AMD to Nvidia Amid AI Boom
ARK Invest purchased $81 million in Nvidia shares while selling $110 million of AMD stock. Cathie Wood's firm locks in profits after AMD's massive surge.
ARK Invest, led by Cathie Wood, executed a major portfolio shift this week, purchasing shares in chip giant Nvidia valued at approximately $81 million while simultaneously selling shares of its rival AMD worth around $110 million. The move highlights a strategy of quick profit-taking alongside increased exposure to the leader of the artificial intelligence market.
The Numbers Behind the Mega Deal
As part of the acquisition, ARK Invest bought 356,681 shares of Nvidia, distributed across four different exchange-traded funds (ETFs). This purchase came shortly after Nvidia's board of directors approved an expansion of its share buyback program by an additional $150 billion. This decision brought the company's total authorized buyback scope to $235 billion through fiscal year 2028, a step viewed by many analysts as a strong expression of management confidence in the company's future.
Conversely, Cathie Wood's firm significantly reduced its holdings in chipmaker AMD. ARK sold 181,767 shares of AMD, also through four different ETFs under its management. The decision to sell AMD shares comes after the stock recorded a surge of approximately 184% during 2026, compared to a more moderate increase of only about 22% posted by Nvidia stock over the same period.
Profit-Taking or an AI Bubble?
"The move highlights a strategy of quick profit-taking alongside increased exposure to the leader of the artificial intelligence market." — Market Analysts
The differences in stock performance suggest that ARK Invest chose to lock in the substantial profits generated by AMD, anticipating that Nvidia will deliver stronger performance later in the year. Both companies are considered the ultimate beneficiaries of the artificial intelligence revolution. Nvidia maintains its undisputed position, with its market capitalization reaching an all-time high of $5.56 trillion in September 2026.
Meanwhile, AMD also achieved notable milestones last month when its share price hit a peak of $615.52 and its market value crossed the $1 trillion mark for the first time. Despite Wall Street analysts remaining optimistic about the continued growth of both companies, lingering concerns persist in the market regarding a potential bursting of the AI bubble, which could carry severe consequences for the broader stock market.
