From Nasdaq: 2025-05-10 09:45:00

Cathie Wood, CEO of Ark Invest, known for her big bets on emerging tech, has recently shown interest in the AI chip market. Wood’s recent purchase of Advanced Micro Devices (AMD) shares indicates a shift in focus. AMD’s growth in the data center space and potential to challenge Nvidia make it an intriguing investment opportunity.

AMD has been steadily growing its data center revenue and operating income, signaling a promising future. With major companies like Microsoft and Meta Platforms utilizing AMD’s chips, the company’s growth trajectory looks favorable. Despite competition, AMD’s forward P/E ratio suggests undervaluation, making it an attractive investment for long-term growth.

Investors looking to capitalize on the AI chip market should consider adding Advanced Micro Devices to their portfolio. While Nvidia remains a key player, AMD’s potential to scale its GPU business profitably makes it a compelling choice. With strong customer partnerships and promising financial results, AMD’s stock presents an opportunity for robust growth in the AI sector.

The Motley Fool’s analyst team has identified 10 top stocks for investors to consider, but Advanced Micro Devices did not make the list. However, historical data shows the potential for significant returns with the right investments. Joining Stock Advisor could provide access to valuable insights and recommendations for maximizing investment opportunities in the market.



Read more at Nasdaq: Cathie Wood Goes Bargain Hunting. 1 Dirt Cheap Artificial Intelligence (AI) Chip Stock She Just Bought (Hint: It’s Not Nvidia)