Ace hedge fund manager Cathie Wood is doubling down on chipmakers Nvidia (NVDA) and Advanced Micro Devices (AMD), despite growing concerns over chip exports to China and the potential impact of escalated tariffs. At the same time, Wood’s Ark Invest sold a major chunk of tech giant Microsoft (MSFT). Meanwhile, its largest purchase for the day was Airbnb (ABNB) stock. These trades were disclosed through ARK’s daily trade updates for April 22. Let’s learn more about these trades in detail.
Wood Keeps Loading Up on NVDA Stock
Wood has been steadily loading up on Nvidia stock lately, leveraging the current dip in its stock price. Year-to-date, NVDA stock has lost 26.4%. Yesterday, the Ark Autonomous Technology & Robotics ETF (ARKQ) bought 11,000 shares of Nvidia, valued at $1.09 million. The semiconductor giant is caught in the crosshairs of the intense U.S.-China trade war. The Trump administration recently put a curb on the export of Nvidia’s H20 artificial intelligence (AI) chips to China, fearing national security threat.
The company even warned of a potential $5.5 billion charge due to the new licensing requirement for the export of H20 AI chips in its Q1FY26 results. In the meantime, Nvidia’s silence on updating key clients about the new restrictions has raised doubts over its handling of the situation.
Nonetheless, NVDA stock scores a Strong Buy consensus rating on TipRanks. This is based on 37 Buys and five Hold ratings. The average Nvidia price target of $168.49 implies 70.4% upside potential from current levels.
Wood Stocks Up AMD Stock
The ARKQ ETF also increased its holdings in AMD shares yesterday, buying 24,800 shares of the chipmaker, worth $2.14 million. The company has also been facing the brunt of the U.S.-China war, with strict limitations on chip exports. Year-to-date, AMD stock is down 28.6%.
Analysts remain divided on AMD’s stock trajectory. On TipRanks, AMD stock has a Moderate Buy consensus rating based on 22 Buys and 12 Hold ratings. The average Advanced Micro Devices price target of $140.90 implies 63.3% upside potential from current levels.
Wood’s ETFs Buy a Bulk of ABNB Stock
Interestingly, Wood’s Ark Fintech Innovation ETF (ARKF) and Ark Next Generation Internet ETF (ARKW) bought a bulk of Airbnb stock on April 22. The two ETFs collectively acquired 80,361 shares of ABNB, valued at $9.23 million. Ahead of its QFY25 results due next week, the hedge fund manager is showing strong conviction in the company’s potential to report favorable results.
Meanwhile, analysts prefer to remain on the sidelines on Airbnb stock. On TipRanks, ABNB stock has a Hold consensus rating based on 12 Buys, 19 Holds, and four Sell ratings. The average Airbnb price target of $152.97 implies 33.1% upside potential from current levels. Year-to-date, ABNB stock has lost 12.6%.
Wood Dumps MSFT Stock
Surprisingly, Wood’s ARKW ETF sold 26,405 shares of Microsoft, valued at $9.7 million. This was the largest sale trade for April 22. Wood’s decision could be a result of Microsoft’s recent announcement to halt data center expansion plans globally, raising doubts about the near-term outlook for AI demand.
Despite the uncertainty surrounding tariffs, analysts remain highly bullish about Microsoft’s long-term potential. MSFT stock commands a Strong Buy consensus rating on TipRanks, based on 32 Buys and four Hold ratings. The average Microsoft price target of $497.03 implies 35.5% upside potential from current levels. MSFT stock is down 12.8% so far this year.