Cathie Wood Loads Up On Chip Stocks Amid Correction - Advanced Micro Devices (NASDAQ:AMD), ARK Autonomous

Cathie Wood-led ARK Investment Management bought over $3.8 million in chip stocks on Monday as the market witnessed some correction in recent times.

Funds operated by ARK bought over 18,500 shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) at an estimated valuation of close to $2 million based on Monday's closing price. Similarly, ARK purchased over 18,000 shares of Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) at an estimated valuation of over $1.8 million.

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The purchase was done via the ARK Autonomous Technology & Robotics ETF (NYSE:ARKQ) and the ARK Next Generation Internet ETF (NYSE:ARKW).

Chip stocks, along with the rest of the market, have witnessed correction since mid-June when the Federal Reserve announced its June policy. After 10 consecutive rate hikes, the central bank announced a pause in its tightening but indicated there could be another 50 basis points worth of hikes this year.

AMD shares have lost over 9% in the last five trading sessions while it closed 2.27% lower on Monday. There have been reports of a drop in AMD Radeon RX 7600 prices. The graphics processing unit (GPU) is now available for $249, marking a $20 discount from its original MSRP. The stock is still up over 67% since the beginning of the year, according to Benzinga Pro.

At the same time, Taiwan Semiconductor shares have corrected just 3.91% in last five trading sessions and have registered over 35% gains since the beginning of 2023.

Major Sale: ARK sold over 8,200 shares of Tesla Inc (NASDAQ:TSLA) at an estimated valuation of close to $2 million. The stock closed over 6% lower on Monday after Goldman Sachs downgraded it from ‘Buy' to ‘Neutral.'