The female stock goddess takes action! The key reasons for abandoning AMD and buying "it" have emerged

"Female stock goddess" Cathie Wood.

AI chip stocks have been increasingly volatile recently. However, "Female Stock God" Wood's Ark Investment has adjusted its holdings as early as the end of September, selling AMD for approximately US$111 million (approximately NT$3.64 billion) and buying Huida for approximately US$81 million (approximately NT$2.66 billion). Why did she choose Huida instead of AMD? The valuation gap between the two stocks is key.

The US media "The Motley Fool" reported that ARK Investment's flagship fund ARK Innovation ETF made this holding adjustment at the end of September. From a valuation perspective, Huida's estimated price-to-earnings ratio this year is about 22 times, while AMD's is as high as 63.5 times. The gap between the two is quite large. This also means that the market has higher expectations for AMD's future profit growth. In comparison, Huida's stock price valuation appears more attractive.

In addition to valuation factors, Huida's active entry into the CPU market is also the reason why this operation deserves attention. AMD currently has a leading advantage in the CPU market. As the demand for AI inference increases, the importance of CPUs in AI computing architecture continues to increase. It was originally regarded as an important opportunity for AMD's future growth.

However, Huida is actively challenging this market. Its new-generation Vera Rubin server platform will integrate next-generation GPUs and new CPUs to seize AI data center business opportunities. This layout may threaten AMD's original market advantage and further affect future growth space.