Cathie Wood, a prominent figure in the realm of growth investing and the co-founder and CEO of Ark Invest, is making headlines with her recent stock purchases. Wood’s investment strategy appears to be regaining traction, particularly as her flagship fund has surged 17% since hitting a recent low. With her trades made public daily, investors are keen to see where she’s directing her capital right now, especially as the market dynamics shift.
Let’s dive into three noteworthy stocks that Wood has recently acquired: Advanced Micro Devices (AMD), DraftKings (DKNG), and Tempus AI (TEM).
Advanced Micro Devices is at a pivotal moment, attempting to solidify its presence in the fast-evolving AI landscape. Despite facing challenges, including a decline in share prices this year, AMD is gearing up for a significant event titled “Advancing AI 2024” on October 10, where it plans to showcase its latest innovations in AI accelerators and server processors. While AMD’s recent earnings have shown mixed outcomes, its data center segment experienced an impressive 115% revenue increase in the last quarter, emphasizing its potential to rebound. Analysts predict a return to double-digit growth, making this a stock to watch, especially as demand for AI solutions continues to rise.
On the other hand, DraftKings is capitalizing on the excitement surrounding sports betting, particularly with the recent kickoff of the NFL season. With over 8.4 million unique users having placed bets on its platform over the past year, DraftKings is steadily growing, even though its revenue growth slightly slowed to 26%, the lowest in four years. Nonetheless, the company surprised analysts with a profitable quarter, prompting upgrades from various financial firms, hinting that Wall Street is starting to take notice of its potential within the thriving online sports betting sector.
Tempus AI, a newcomer in the market, is capturing Wood’s attention due to its innovative approach in the healthcare industry. After its initial public offering, Tempus saw its share price double within weeks, although it has since corrected significantly. The company’s first quarterly results as a publicly traded entity revealed a solid revenue increase of 25%. However, analysts are cautious about its profitability timeline, projecting it won’t achieve consistent profits until 2027 at the earliest. Wood’s investment in Tempus highlights her willingness to bet on high-risk, high-reward stocks that have the potential to revolutionize their respective industries.
Investing alongside Cathie Wood is intriguing for many, as her picks often spotlight transformative technologies and industries poised for massive growth. Each of these stocks—AMD, DraftKings, and Tempus AI—offers unique challenges and opportunities that could define investor portfolios in the coming months. Whether it’s the AI advancements from AMD, the sports betting trend from DraftKings, or the pioneering healthcare tech of Tempus, Wood’s choices reflect a broader focus on innovation and growth potential in today’s market landscape.
As investors navigate these options, they may want to consider how these dynamic sectors are shaping up for the future while keeping a keen eye on Wood’s strategic movements.