ARK Investment Management made headlines on Wednesday by acquiring a substantial position in Advanced Micro Devices, Inc. (AMD) after the company”s stock experienced a sharp decline of 17%. The investment firm purchased a total of 141,108 AMD shares, valued at approximately $28.2 million as per the closing price.
Despite reporting solid fourth-quarter results with an adjusted earnings per share (EPS) of $1.53 and revenue reaching $10.27 billion—both figures exceeding Wall Street expectations—AMD”s stock fell to $200.19. This marked the largest single-day drop for the company since May 2017, driven primarily by investor disappointment over its earnings guidance.
For the first quarter of 2026, AMD projected revenue between $9.5 billion and $10.1 billion. While the midpoint of $9.8 billion surpassed the consensus estimate of $9.39 billion, many investors felt the guidance did not justify the stock”s hefty valuation, especially following a significant price surge of over 40% since early October.
The buying frenzy by ARK”s ETFs included a variety of funds, with the ARK Innovation ETF leading by adding 76,518 shares, while the ARK Next Generation Internet ETF acquired 20,532 shares. Other ARK funds such as the ARK Autonomous Technology & Robotics ETF, ARK Blockchain & Fintech Innovation ETF, and ARK Space & Defense Innovation ETF also participated in this buying spree.
Following the ARK investment, AMD shares saw a modest increase in Thursday”s premarket trading, climbing 2.1% to $204.48. This uptick suggests that other investors may be following Wood”s lead in taking advantage of the stock”s recent dip.
In addition to AMD, ARK funds also expanded their portfolios by purchasing shares in several other companies, including Tempus AI, Tesla, GeneDx, CoreWeave, Bullish, Circle Internet Group, Brera, and Kodiak AI.
Cathie Wood, known for her aggressive investment strategy, has had significant success in the tech and AI sectors, with the ARK Innovation ETF gaining 35% in 2025 and the ARK Next Generation Internet ETF rising 37%. In contrast, the S&P 500 only added 16% during the same period, illustrating the outperformance of ARK”s managed funds.
Analysts suggest that the post-earnings drop in AMD”s stock could present a buying opportunity, with expectations for analyst estimates to rise in the coming days. This could potentially align AMD”s future valuation more closely with that of its competitor, Nvidia.
As of the latest updates, AMD shares have increased by 2.3%, though they remain down 6.5% year-to-date.
