It's been a rough start in 2026 for Ark Invest co-founder, CEO, and Chief Investment Officer Cathie Wood. The largest exchange-traded fund at her company is trading 10% lower year to date. The fund's market-thumping performance in 2025 is now up a mere 5% over the past year.
She's not changing her investing style. She keeps adding to some of her favorite stocks when they are sliding. Ark bought shares of Advanced Micro Devices (AMD 3.20%), Broadcom (AVGO 1.35%), and Coinbase Global (COIN 2.00%) on Tuesday, adding to existing positions. Let's take a closer look at Wood's latest purchases.
Image source: Getty Images.
1. Advanced Micro Devices
AMD stock has fallen 24% since its peak last month. The lion's share of that slide took place earlier this month, when the stock dropped 17% in a single day after the company posted disappointing financial results.
The quarter itself was fine. Revenue rose 34% to $10.3 billion for the maker of central processing units (CPUs), graphics processing units (GPUs), and other microprocessors, exceeding expectations. A 39% increase in data center revenue and a 37% surge in its client and gaming business helped pave the way for its fourth consecutive quarter of top-line growth above 30%.
NASDAQ: AMD
Key Data Points
With AMD's operating margin widening, it's not a surprise to see profitability more than tripling in the fourth quarter. It was a beat on both ends of the income statement, but guidance is where the bull case failed to resonate with the market, which is enamored with AMD as an artificial intelligence (AI) play.
The midpoint of its revenue guidance for the current quarter is below analysts' first-quarter models. Adding insult to injury, even the $10.1 billion high end of its revenue range would be a sequential dip from the $10.3 billion it delivered in the fourth quarter.
I respect Wood's thinking here. Strip away the noise, and AMD is still expected to deliver another period of at least 30% revenue growth at the midpoint of its guidance. Analysts see AMD's top line climbing 34% for all of this year, accelerating to 39% in 2027. Buying AMD for 19 times next year's profit targets seems like a good deal, and it will get even better if the tariffs and Chinese trade restrictions ease by then.
NASDAQ: AVGO
Key Data Points
2. Broadcom
Broadcom stock has retreated 20% since its December high. Long-term investors aren't complaining. The provider of semiconductor and tech infrastructure solutions has been a six-bagger over the past five years. It's become a popular pick-and-shovel play in the AI boom, given the pop in its AI semiconductor revenue.
Broadcom has earned the upticks. It did see its revenue growth cut nearly in half in fiscal 2025, going from 44% a year earlier to 24% this time around. However, analysts expect revenue to increase by 52% this fiscal year. Capital appreciation is the story here, but even growth investors can appreciate a quarterly dividend that has been hiked for 15 consecutive years.
Like AMD, Broadcom is priced at a forward earnings discount to its growth. The stock is fetching 32 times earnings for this fiscal year, which ends in November, and a compelling 23 times next year's forecast.
NASDAQ: COIN
Key Data Points
3. Coinbase
Coinbase has had the steepest drop of the three stocks. Shares of the online trading platform for digital currencies have plummeted 63% since peaking last summer. The global market's appetite for crypto has cooled substantially lately. As the leading hub for that form of currency trading -- housing 12% of the world's cryptocurrency assets -- it's going to get pinched when apathy is the seasonal flavor.
Last week's financial update didn't provide much comfort. Total revenue, transaction revenue, and subscription and services revenue checked in with sequential declines of 5%, 6%, and 3%, respectively. Making matters worse, operating expenses inched higher.
Barring a surge in the second half of the current quarter, things are looking even worse in early 2026. Coinbase's early guidance for subscription and services revenue -- the only segment it provides guidance for -- is expected to decline 18% sequentially at the midpoint of its range.
