Ace Hedge fund manager Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made some interesting trades on Monday. ARK ETFs continued to bet big on chip giant Advanced Micro Devices (AMD), buying more than 350,000 shares yesterday. However, ARK again trimmed its stake in crypto stock Coinbase Global (COIN).
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Cathie Wood’s ARK Is Bullish on AMD Stock
On Monday, ARK Invest bought 356,275 shares of Advanced Micro Devices stock across three of its funds: Ark Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). The purchase was made for a total amount of $51.24 million. Considering all ARK ETFs, AMD is the 11th-largest holding, accounting for 2.65% of the combined holdings. Previously, ARK purchased 130,256 shares of AMD on June 23.
AMD stock has risen 28% over the past month and is up 17.5% year-to-date. Investor sentiment on the semiconductor giant has improved since it reported better-than-expected Q1 earnings. Moreover, several analysts are optimistic about the prospects of AMD’s new artificial intelligence (AI) chips, which are expected to address concerns about the company lagging behind rival Nvidia (NVDA) in the AI race.
Is AMD Stock a Buy or Sell Now?
With 24 Buys and 10 Holds, Advanced Micro Devices stock scores a Moderate Buy consensus rating. The average AMD stock price target of $133.55 indicates 6% downside risk.
ARK Trims Holdings in COIN and ESLT Stocks
ARK has been trimming its holdings in crypto exchange Coinbase Global, offloading 124,892 shares across the ARKK, ARKW, and ARKF ETFs on Monday for $44.14 million. Earlier, ARK offloaded 112,729 COIN shares on June 27 and 33,363 shares on June 26.
Meanwhile, military technology and defense contractor Elbit Systems (ESLT) saw a sale of 1,160 shares by the ARK Autonomous Technology & Robotics ETF (ARKQ) and ARK Space Exploration & Innovation ETF (ARKX) ETFs for a total value of $503,799.
Turning to Wall Street, Coinbase stock scores a Moderate Buy consensus rating, with the average COIN stock price target of $198.15 indicating a 15% possible decline from current levels. Meanwhile, Elbit Systems earns a Hold consensus rating, with the average ESLT stock price target reflecting a 6.9% downside risk.
