Cathie Wood Just Went Bargain Hunting: 2 Artificial Intelligence (AI) Chip Stocks She Just Scooped Up (Hint: Nvidia Isn't One of Them)

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Micro Devices ›As CEO and chief investment officer of Ark Invest, Cathie Wood might be best known for her high conviction in speculative opportunities across industries such as genomics and cryptocurrency.When it comes artificial intelligence (AI), many of Ark's biggest positions are in volatile stocks such as Tesla and Palantir Technologies. Over the last couple of months, however, Wood has quietly been rounding out her exchange-traded funds (ETFs) with semiconductor stocks.Let's explore two AI chip stocks that have recently become rising stars in the Ark portfolio. Is now the time to follow Wood's moves? Read on to find out.While Advanced Micro Devices (NASDAQ: AMD) has been part of Ark's portfolio for quite some time, the investment firm began aggressively adding to its position throughout late April and most of May.According to public trading data, Ark added approximately 800,000 shares of AMD between June 17 and 30. The position is spread across the Ark Autonomous Technology & Robotics ETF, Ark Next Generation Internet ETF, Ark Fintech Innovation ETF, and Ark Innovation ETF. As of this writing, AMD has now become the 11th biggest position for Ark Invest overall.In fairness, AMD's rise at Ark has been influenced by some pronounced share price gains in recent weeks too. Since Ark began adding to its AMD position in late April, shares have gained roughly 61%.In my eyes, AMD's recent gains can be tied to the company's accelerating data center business as well as bullish anticipation for its new AI accelerators during the second half of this year.Data by YCharts.Nevertheless, even with such a massive move in the share price, AMD trades for roughly 36 times forward earnings. Although this isn't exactly cheap, shares of AMD are well within their usual valuation range.My hunch is that AMD is still being discounted by some investors, primarily due to the enormous competitive threat the company faces from Nvidia.Considering how much momentum is fueling AMD stock right now, I think I'd sit on the sidelines for the time being. To me, the company's long-term prospects are somewhat ambiguous so long as Nvidia remains king of the chip industry. While there is likely still good money to be made in AMD stock, there are more reasonable price points to build a position.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,279.35 +51.93 (+0.83%)Dow 3044,828.53 +344.11 (+0.77%)Nasdaq20,601.10 +207.97 (+1.02%)Russell 20002,249.04 +22.66 (+1.02%)VIX17.48 +1.10 (+6.72%)Gold3,346.50 +3.60 (+0.11%)PortfolioSign in to access your portfolioSign inTop gainersBMNR Bitmine Immersion Technologies, Inc. 135.00 +76.50 (+130.77%)RUN Sunrun Inc. 10.50 +1.51 (+16.80%)TRIP Tripadvisor, Inc. 17.50 +2.51 (+16.74%)DDOG Datadog, Inc. 155.15 +20.14 (+14.92%)SYM Symbotic Inc. 47.91 +5.71 (+13.53%)Top losersLEN Lennar Corporation 110.12 -4.69 (-4.09%)LEN-B Lennar Corporation 105.62 -4.37 (-3.97%)ESGRP Enstar Group Limited 19.45 -0.79 (-3.91%)HOOD Robinhood Markets, Inc. 94.40 -3.58 (-3.65%)BG Bunge Global SA 78.44 -2.95 (-3.62%)Most activeLCID Lucid Group, Inc. 2.1600 +0.1100 (+5.37%)NVDA NVIDIA Corporation 159.34 +2.09 (+1.33%)INTC Intel Corporation 22.49 +0.61 (+2.79%)F Ford Motor Company 11.81 +0.04 (+0.34%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)Earnings eventsTrending tickersBTC-USD Bitcoin USD 108,918.13 +720.23 (+0.67%)XRP-USD XRP USD 2.27 +0.04 (+1.88%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)BONK-USD Bonk USD 0.00 +0.00 (+25.50%)LKNCY Luckin Coffee Inc. 38.49 +0.50 (+1.32%)Top economic events