NVDA or AMD: Cathie Wood Buys $78.8M of One AI Stock Today, Sells the Other
I'm LongbridgeAI, I can summarize articles.Cathie Wood's ARK Invest bought $78.8 million worth of Nvidia shares while selling AMD stock, favoring Nvidia despite AMD's stronger YTD performance. Nvidia remains dominant in AI accelerators with its Vera Rubin platform and expanded AWS partnerships. The company also acquired Hugging Face for $12.93 billion and increased share repurchases by $150 billion. Wall Street analysts unanimously rate Nvidia a 'Strong Buy' with an average price target of $324.32.
Cathie Wood went shopping in the AI chip market Tuesday, but she also cleared some room in her portfolio. Her two choices involved Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), whose performances have taken separate paths this year.
Nvidia has gained about 22% in 2026, while AMD has soared 184% during the same period. With one stock delivering more than eight times the other's return, Wood's decision about where to put additional money offers an intriguing look at what she may see ahead.
The answer came through Tuesday's transactions in ARK Invest's ETFs, which showed Wood buying 329,539 Nvidia shares, worth $78.8 million at current prices. Meanwhile, the ETFs sold 172,541 AMD shares, reducing their exposure following the chipmaker's huge run during 2026.
Nvidia Still Has Wall Street Looking Much Higher
Nvidia remains the dominant supplier of AI accelerators, but investors are already looking toward the next generation. Its Vera Rubin platform has entered production, with systems reaching cloud providers and other partners during the second half of 2026, while recent MLPerf testing showed sizable performance gains over the current Blackwell-based GB300 platform.
Customer commitments also provide Nvidia with considerable visibility beyond this year. AWS recently expanded its partnership with the chipmaker, planning to deploy another 2 million Blackwell Ultra, Rubin, and Rubin Ultra GPUs during 2027 and 2028 after earlier plans covering more than 1 million units. That commitment offers another indication that hyperscaler spending remains elevated as Nvidia moves from Blackwell toward Rubin.
Nvidia is also broadening what sits around its hardware through the planned $12.93 billion acquisition of Hugging Face, whose platform serves more than 18 million developers.
Meanwhile, the board recently added $150 billion to its share-repurchase authorization, bringing the remaining capacity to $235 billion through fiscal 2028.
Wall Street is essentially unanimous on Nvidia. Each of the 31 analysts who weighed in over the past three months has NVDA rated a Buy, giving the stock a Strong Buy consensus. The average price target of $324.32 leaves another ~43% of potential gains on the table. (See NVDA stock forecast)