Semiconductor stocks, which have outperformed the broader tech sector, have found favor with fund manager Cathie Wood. On Monday, Ark Investment Management, founded by Wood, doubled down on a trio of nega-cap chip stocks.

Ark Invest’s daily trade report showed that the firm, through its flagship Ark Innovation ETF (ARKK), ARK Fintech Innovation ETF (ARKF), and ARK Next Generation Internet ETF (ARKW), bought 1,30,256 Advanced Micro Devices, Inc. (AMD) shares. 

At AMD’s closing price of $129.59 on Monday, the purchase is valued at $16.9 million.

AMD stock added 1.04% on Monday, slightly outperforming the broader market and the tech sector, after Melius Research upgraded the stock to a ‘Buy’ from ‘Hold’ and upped the price target to $175 from $110. The Fly reported that analysts at the firm viewed that many things have changed for the better for AMD since the start of the year.

The analysts envisioned even bigger GPU numbers for the 2026-28 timeframe due to a sustainable surge in inference and increasing interest in the company’s GPU roadmap globally. 

They also noted that the MI400 series will launch next year, and the new iteration will include rack-scale configurations.

Melius sees AMD’s earnings power topping $8 within two years.

Ark’s flagship ARKK ETF had AMD as its 12th biggest holding, with the stock accounting for 2.41% of the portfolio weighting in terms of value. Artificial intelligence (AI) frontrunner Nvidia makes up only 1.13% of ARKK’s portfolio.

The firm also bought 73,030 Taiwan Semiconductor Manufacturing (TSM) shares and 8,031 Qualcomm, Inc. (QCOM) shares.

Retail sentiment toward the AMD stock remained subdued on Stocktwits early Tuesday, with the sentiment meter reading 52/100, suggesting a ‘neutral’ mood, but the message volume was high.

In premarket trading on Tuesday, AMD stock climbed 2.56% to $133, as the broader market is set to open higher on hopes of a truce between Israel and Iran.

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