Cathie Wood Trims Palantir After 1,000% Surge, Boosts Stakes in Nvidia and AMD at Attractive Prices

Cathie Wood Adjusts AI Stock Positions Amid Market Shifts

Cathie Wood, CEO of ARK Invest, recently made notable portfolio moves involving three major artificial intelligence (AI) stocks. Demonstrating her characteristic long-term focus and willingness to go against market trends, Wood trimmed her stake in one AI stock that has soared 1,000% over three years, while increasing holdings in two other AI chip companies trading at more attractive valuations.

Locking in Gains on Palantir

Wood sold shares of Palantir Technologies (NASDAQ: PLTR), a leading AI software developer, across multiple trading sessions this week. Palantir remains a core holding, representing 6% of the ARK Innovation ETF, but its valuation near 200 times forward earnings is elevated. Despite strong recent revenue growth and positive demand forecasts, Wood’s decision suggests she is capitalizing on significant gains to free up capital for other opportunities.

While Palantir’s fundamentals remain solid, its lofty valuation could pressure near-term returns. Wood’s move reflects a strategy to balance profit-taking with maintaining exposure to companies with strong long-term prospects.

Buying Opportunity in Nvidia and AMD

Wood boosted positions in Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD), two dominant AI chipmakers. Nvidia’s forward price-to-earnings ratio has dropped to about 26 from 50 earlier this year, while AMD trades around 25 times forward earnings, down from over 30. This valuation decline presents what Wood sees as a favorable entry point.

• Nvidia continues to lead AI chip innovation, delivering record revenue and strong profitability. Its aggressive product roadmap supports sustained growth in AI applications.
• AMD has reported double-digit revenue and profit increases, driven by strengths in CPUs and AI data center chips. CEO Lisa Su highlighted a strong start to 2025 with a 50% gross margin, signaling robust operational efficiency.

What This Means for Investors

All three companies—Palantir, Nvidia, and AMD—are solid choices for long-term investors focused on AI-driven growth. However, valuation metrics suggest that Nvidia and AMD currently offer better value. Given the fast pace of AI market development, these prices may not last, making it a strategic moment to increase exposure.

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