ARK Invest Deepens AI Chip and Gene Editing Investments, Sells 86K Tesla Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
0mins
Should l Buy AMD?
Source: seekingalpha
- AI Infrastructure Boost: ARK Invest increased positions in semiconductor companies like AMD, Broadcom, and TSMC, signaling strong confidence in the infrastructure for AI workloads, which is expected to drive long-term growth for these firms.
- Gene Editing Investments: The firm added 196K shares of Intellia Therapeutics and 49K shares of 10x Genomics, continuing to focus on next-generation sequencing and in vivo gene editing, aiming to capture innovative opportunities in the biotech sector.
- Autonomous Driving Focus: ARK invested in companies like WeRide and Pony AI in the autonomous driving and robotics space, reinforcing its strategic positioning in future transportation technologies, which is likely to enhance portfolio diversity and potential returns.
- Trimmed Mature Tech Holdings: ARK sold over 86K shares of Tesla worth more than $37 million and reduced stakes in Unity Software, reflecting a cautious stance on mature tech companies that may impact short-term stock performance.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 190.950
Low
210.00
Averages
289.13
High
377.00
Current: 190.950
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Job Creation: The new fab is expected to generate 1,400 direct jobs and 500 supply-chain roles, further solidifying TSMC's leadership in semiconductor manufacturing while injecting vitality into the local economy.
- Strong Market Performance: Driven by AI hardware demand, Taiwan's January exports surged 70%, the fastest pace in 16 years, while TSMC reported a 37% revenue increase for the same period, indicating robust market demand and economic momentum.
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- Capacity Expansion Plan: TSMC's new 15.46-hectare facility in the Southern Taiwan Science Park has passed environmental impact assessment, with completion targeted for 2028, focusing on industrial efficiency with 8 hectares dedicated to production equipment to enhance overall capacity to meet global AI hardware demand.
- Job Creation: The new fab is expected to generate 1,400 direct jobs and 500 supply-chain roles, further solidifying TSMC's leadership in semiconductor manufacturing while injecting vitality into the local economy.
- Strong Market Performance: Driven by AI hardware demand, Taiwan's January exports surged 70%, the fastest pace in 16 years, while TSMC reported a 37% revenue increase for the same period, indicating robust market demand and economic momentum.
- GDP Growth Forecast Upgraded: The Taiwanese government has revised its annual GDP growth forecast upward to 8.68% due to strong export performance and TSMC's impressive results, reflecting the positive impact of the semiconductor industry on the economy.
See More
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- Iran Withdrawal Resolution Fails: The U.S. Senate's failure to pass a resolution demanding President Trump withdraw from military actions in Iran highlights significant congressional divisions over current military policy, despite the resolution's largely symbolic nature.
- Major Update to French Nuclear Policy: French President Macron's announcement to increase the number of nuclear warheads and enhance cooperation with European allies is viewed as the most significant update to France's nuclear deterrence policy in 30 years, potentially reshaping the European security landscape.
- Impact on Indian Remittance Flows: A Citi report indicates that the Indian diaspora in Gulf countries contributes nearly 38% of total remittance inflows, with a total of $135.4 billion in FY 2025, of which $51.4 billion comes from Gulf nations, suggesting that prolonged Middle Eastern conflict could negatively impact India's economy.
- China Sets Record Low GDP Growth Target: The Chinese government has set its GDP growth target for 2026 at 4.5% to 5%, marking the lowest target on record since the early 1990s, reflecting the challenges Beijing faces amid persistent deflationary pressures and trade tensions with the U.S.
See More
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- Strong Earnings Report: Broadcom's fiscal Q1 2026 revenue reached $19.31 billion, surpassing the $19.18 billion consensus forecast with a 29% year-over-year increase, indicating robust growth potential in the AI chip sector.
- Improved Profitability: Adjusted earnings per share (EPS) rose 28% to $2.05, exceeding expectations of $2.03, while adjusted EBITDA grew 30% to $13.13 billion, further boosting investor confidence.
- Optimistic Future Outlook: Broadcom projects AI chip revenue to exceed $100 billion by 2027, having secured the necessary supply chain, reflecting strong confidence in future demand, particularly with a positive relationship with OpenAI.
- Shareholder Return Plan: The company announced a newly authorized $10 billion share repurchase program, which, combined with strong financial performance and an optimistic outlook, enhances market confidence in Broadcom's stock.
See More
Nvidia vs AMD: The AI Market Showdown
- Market Share Comparison: Nvidia commands an impressive 86% market share in AI data center revenue, compared to AMD's mere 7%, highlighting Nvidia's dominant position in the data center processor market, which is likely to attract more customers in the future.
- Major Deal Impact: AMD's agreement with Meta to supply up to 6 gigawatts of AI data center processing, valued at over $100 billion, represents a significant win for AMD; however, its high stock valuation raises concerns among investors.
- Financial Performance Divergence: Nvidia's recent Q4 fiscal 2026 results revealed a 65% increase in sales to nearly $216 billion, with adjusted earnings rising 60% to $4.77 per share, indicating strong growth momentum in the AI sector.
- Valuation Comparison: Nvidia's P/E ratio stands at 53, which, while above the tech sector average, is significantly lower than AMD's 101, making Nvidia a more attractive investment in the AI stock landscape given its robust financial performance.
See More
China Sets Record Low GDP Growth Target for 2026
- GDP Growth Target: China has set its GDP growth target for 2026 at 4.5% to 5%, marking the lowest target on record since the early 1990s, indicating significant challenges for economic recovery amid persistent deflationary pressures and trade tensions with the U.S.
- Defense Spending Increase: Defense spending is projected to rise by 7%, the slowest increase since 2021, although analysts believe the official figures may be understated, which could impact national security and military modernization efforts.
- Data Center Attack: Amazon's data center in Bahrain was targeted by Iran for supporting the U.S. military, with damage reported from a drone strike, potentially affecting Amazon's cloud computing operations in the Middle East in the short term.
- Global Tariff Increase: U.S. Treasury Secretary announced that global tariffs will rise from 10% to 15%, with expectations that tariff rates will return to pre-Supreme Court ruling levels by August, which will have profound implications for international trade and the cost structures of U.S. businesses.
See More
US Stock Market Rises on Economic Resilience
- Strong Economic Data: The February ADP employment report revealed an addition of 63,000 jobs, surpassing expectations of 50,000, indicating continued growth in the labor market and boosting investor confidence in economic recovery.
- Service Sector Expansion: The US ISM services index unexpectedly rose to 56.1 in February, significantly better than the anticipated 53.5, reflecting the fastest pace of expansion in 3.5 years and further supporting the stock market rally.
- Oil Price Volatility: Crude oil prices surged over 1% due to the closure of the Strait of Hormuz, despite reports suggesting Iran's willingness to discuss terms for ending the conflict, intensifying market concerns over energy supply.
- Market Performance: The S&P 500 index rose by 0.78%, the Dow Jones Industrial Average increased by 0.49%, and the Nasdaq 100 index climbed by 1.51%, reflecting optimistic expectations regarding economic resilience and corporate earnings.
See More
