We recently published a list of Cathie Wood’s Top 12 AI Stock Picks in 2025. In this article, we are going to take a look at where Advanced Micro Devices Inc (NASDAQ:AMD) stands against other Cathie Wood’s top AI stock picks in 2025.
Since founding ARK Investment Management in 2014, Cathie Wood has earned her place next to legends like Warren Buffet, Ken Fisher, and others. Wood’s investment philosophy centers around identifying and investing in disruptive innovation, which she has put to great use through ARK Innovation ETF.
Historically, Wood has favored tech stocks. She put substantial value into tech companies that promised to disrupt their respective industries through innovation. That hasn’t changed much, and if anything, she seems to be doubling down. Since the beginning of the year, Wood has seemed to smell great opportunities in artificial intelligence (AI). In fact, the latest installment of ARK Invest’s research, ARK’s Big Ideas 2025, puts AI up there in terms of today’s most transformative innovations.
READ ALSO: Paul Singer’s Latest Portfolio: Top 10 Stock Picks and 10 Best Stocks to Buy According to Seth Klarman.
Wood recently commented on the research in a video posted on ARK Invest’s YouTube channel, and her takeaways confirm that she is all in on AI. Right from the start, she believes AI is the story today and in the future. She said:
“AI has been the big story for the past two years, and it’s still the big story. In fact, it is the biggest catalyst to all of the innovation taking place out there uh, it is the reason that the world seems to be speeding up.”
In fact, Wood is convinced that the ongoing AI-driven productivity will put an end to the rolling recession. She said this in her podcast “In the Know,” which outlined a bullish vision of technological innovation driving real GDP growth. While referencing the economic decline that she believes has been ongoing since the Fed began raising rates in 2022, she said, “We’re coming to the end of [the rolling recession]. The bad news is we do have to go through this process.”
Wood and her investment firm have built a reputation for making high-conviction bets on early-stage companies (and industries). Interestingly, one of the key paragraphs in ARK’s Big Ideas 2025 focuses on the risks of investing in innovation. While it points out the risks, it also gives away one of the core beliefs that makes Wood the investor she is: “Risk is how you unlock exponential growth.”
Our Methodology
We reviewed ARK Investment Management’s 13F holdings, as of Q4 2024 and selected the fund’s top 12 AI stock picks. We then ranked the top 12 AI stocks in ascending order based on ARK Investment Management’s stake value. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices Inc (NASDAQ:AMD)
ARK Investment Management’s Stake Value: $145.74 Million
Number of Hedge Funds Holding Stakes: 96
Advanced Micro Devices Inc (NASDAQ:AMD) is a technology company that designs and manufactures semiconductor products, including CPUs, GPUs, and FPGAs, used in various applications like gaming, data centers, and embedded systems. It is the most significant player in the AI chip market, right behind Nvidia, affirming why it is one of Cathie Wood’s favorite stocks in the burgeoning sector.
Advanced Micro Devices Inc (NASDAQ:AMD) is renowned for providing advanced GPUs to enable AI workloads at affordable prices. It is a competitive advantage that offers quality to budget-conscious consumers and is expected to trigger an increase in orders as demand for AI chips rises. In reaction to Nvidia’s hegemony in that market, AMD is already offering the MI300 series of accelerators. Additionally, to compete with Nvidia’s Blackwell line, it introduced the MI325X accelerators.
Advanced Micro Devices Inc (NASDAQ:AMD) is among the best AI players because it boasts a solid and reliable customer pipeline for its AI chips. Microsoft is one of its biggest customers for the flagship MI300X GPUs to drive several GPT 4-based Copilot services. Likewise, it had an impressive 2024 as it progressed in the AI market. Its data center revenue amid the AI boom surged 69% to a record $3.9 billion and was up by 94% for the year to a record $12.6 billion.
Overall, AMD ranks 8th on our list of Cathie Wood’s top AI stock picks in 2025. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
