Cathie Wood’s Ark Invest made significant moves in the market on Tuesday, with Advanced Micro Devices (AMD) and Palantir Technologies (PLTR) taking center stage.
AMD: A Bet on AI
Ark Invest purchased 47,717 shares of AMD, representing 0.1251% of the ARK Innovation ETF (ARKK). This purchase comes as AMD gears up for its “Advancing AI 2024” event on October 10th. The event will showcase AMD’s latest AI technologies, including its next-generation Instinct accelerators, 5th Gen EPYC server processors, and its expanded AI PC solutions. AMD is also making strategic shifts in the gaming GPU market, focusing on capturing market share in the mainstream and mid-range segments instead of competing directly with Nvidia’s high-end offerings. While Nvidia currently dominates the discrete GPU market, AMD is actively building its own scale, evidenced by its recent hiring of key Nvidia personnel and a planned $4.9 billion acquisition of AI server company ZT Systems.
Palantir: A Sell-Off After the Hype?
On the other hand, Ark Invest sold 124,626 shares of Palantir, representing 0.0812% of the ARKK fund. This sale comes after a significant stock surge for Palantir, following the announcement of its inclusion in the S&P 500 index. Palantir shares saw a 14.08% surge and continued to rise over 12% since Friday, driven by both the S&P 500 news and a new enterprise agreement with BP to enhance AI capabilities. CEO Alex Karp celebrated the S&P 500 milestone, and analysts like Dan Ives and Mariana Perez see it as a sign of Palantir’s future profitability. However, despite the recent upswing, price predictions for Palantir vary widely, with a 1-year average target of $27.79, suggesting potential downside, while some top estimates reach $50.
Other Notable Trades:
Ark Invest also made other notable trades, including:
* Selling shares of Unity Software Inc (U) from the ARKK fund.
* Buying shares of Draftkings Inc (DKNG) for the ARKK fund.
* Buying shares of Rubrik Inc (RBRK) for the ARKW fund.
* Selling shares of Vuzix Corp (VUZI) from the ARKW fund.
Ark Invest’s trades offer a glimpse into their investment strategies and the potential for both AMD and Palantir in the evolving technological landscape.
