Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Ark Invest CEO Cathie Wood added to positions in Advanced Micro Devices, Pinterest and Intellia Therapeutics after mixed but actionable company updates. AMD reported revenue up 9% year‑over‑year with data‑center revenue more than doubling to $2.8 billion (a 115% increase), EPS up eightfold, and raised full‑year AI chips revenue guidance to $4.5 billion, driving a ~4% intraday pop; Pinterest delivered revenue of $854 million (+21%) and adj. EPS $0.29 with 522 million active accounts but issued Q3 guidance of $885–900 million below Street estimates, prompting a ~14% selloff; Intellia, down ~38% YTD, received U.K. authorization for a Phase 1/2 study and published positive redosing POC data, supporting long‑term upside despite recent management turnover.

Analysis

Market structure: AMD's quarter confirms a redistribution of data-center GPU spend toward non-Nvidia suppliers; hyperscalers directly benefit (AMD, TSMC) while legacy client/gaming OEMs and AMD's own client segment remain weak. Pinterest's print shows demand resilience for ad/ARPU but guidance sensitivity creates asymmetric downside for social ad names; Intellia's move is a binary biotech winner-take-most market where successful Phase 2/3 readouts would reprice revenue multiples materially.

Risk assessment: Key tail risks are export controls or fab capacity constraints (TSMC/ASML) that could cap AMD's AI share, and regulatory/clinical setbacks or pricing/reimbursement risk for NTLA; for PINS, ad-cycle macro slowdown could compress ARPU by >10% in 2-4 quarters. Time horizons differ: AMD momentum driven by quarterly GPU shipments (0–6 months) while NTLA is 6–24 months to clinical catalysts; PINS is reactive within 1–3 quarters to guidance and advertiser budgets.

Trade implications: Favor semiconductor exposure to AI (AMD) but hedge share-specific execution — use size limits (2–4% portfolio) and volatility-defined options (6–9m call spreads) to express upside. For NTLA, prefer defined-risk bullish LEAPS call spreads or small equity exposure (<=1–2%) given 40%+ downside history; for PINS, opportunistic buys after >10% follow-through or sell into rallies if guidance continues to underperform.

Contrarian angles: Market is under-discounting AMD’s data-center share gains — if AMD sustains >2x YoY data-center revenue growth for 2 consecutive quarters, re-rate could be rapid; conversely NTLA is over-discounted relative to successful redosing proof-of-concept, creating asymmetric upside if mid-stage trials hit endpoints. Unintended consequences include faster industry consolidation or pricing pressure if AMD scales supply aggressively, which would cap margins despite share gains.

Key Decisions for Investors

• Establish a 2–3% portfolio long in AMD (ticker AMD) within 1–2 weeks, funded by reducing low-conviction cyclicals; size position to risk no more than 15% stop-loss and hedge with a 6–9 month 25–40% OTM call spread (buy 1.0 AMD 9m ITM/OTM call spread) to cap downside while retaining 2x upside exposure to AI GPU momentum.
• Initiate a 1–1.5% portfolio long in Pinterest (PINS) on any additional >10% intraday decline from current levels or buy in tranches over 4 weeks up to 2% if ARPU growth sustains >5% YoY; set a sell target of +30% or if next quarter guide misses consensus by >3% absolute ($30–35M) of revenue.
• Take a defined-risk bullish posture on Intellia (NTLA) via 12–18 month call spreads (buy LEAPS call and sell higher strike) sized to 0.5–1% portfolio exposure, or buy stock with a hard stop of 25% and plan to hold 6–24 months for clinical readouts; avoid naked long equity exposure >2% due to binary regulatory/clinical tail risk.
• Implement a relative-value pair: long AMD (2%) / short NVDA (1%) for 6–12 months to capture potential AMD share gains, capping short size to 50% of long notional to limit gamma and crowding risk; close or rebalance if AMD data-center revenue growth falls below +50% YoY for two consecutive quarters.
• Rotate +3–5% portfolio weight into AI-focused semiconductors and away from consumer PC/gaming exposures over the next 3 months, and monitor TSMC capacity signals and export-control headlines weekly (sell/trim if TSMC guidance tightens or if new export controls proposed within 30 days).