Cathie Wood Makes Trading Blitz: Buys Alibaba Stock Worth $11 Million, Dumps AMD And This AI Stock (CORRECTED)

Editor’s Note: The story's headline has been updated to correct a typo.

On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving Alibaba Group Holding Ltd (NYSE: BABA), Advanced Micro Devices Inc. (NASDAQ: AMD), and Tempus AI Inc. (NASDAQ: TEM).

The Alibaba Trade

ARK Innovation ETF (BATS: ARKK) fund purchased 63,231 shares of Alibaba Group. This acquisition, valued at approximately $11.16 million, comes amid a surge in Alibaba’s stock price. The stock closed at $176.44, marking an 8.19% increase.

This uptick follows news of CEO Eddie Wu’s announcement to expand the company’s AI investment. Alibaba’s focus on AI infrastructure is expected to accelerate global spending, potentially boosting the company’s growth prospects.

The AMD Trade

In a contrasting move, Ark Invest’s ARKK fund sold 138,432 shares of AMD, amounting to a transaction value of approximately $22.3 million. AMD’s stock closed at $160.88, experiencing a slight decline of 0.01%.

This sale follows AMD’s expanded partnership with Cohere to enhance enterprise AI capabilities using AMD’s Instinct GPUs. The collaboration aims to provide enterprises and governments with scalable, secure, and efficient AI solutions, bolstering AMD's momentum in the data center and AI markets.

The Tempus AI Trade

Ark Invest also reduced its stake in Tempus AI by selling 45,299 shares through the ARKK fund. The sale, valued at approximately $3.6 million, follows a recent decline in Tempus AI’s stock, which closed at $79.23, down by 5.82%.

This move comes after Tempus AI received FDA clearance for its RNA-based device, a milestone that had previously driven the stock higher. On Tuesday, Ark had sold $5.2 million worth of Tempus AI stock. The firm has been consistently offloading shares recently.

Other Key Trades:

Baidu Inc. (NASDAQ: BIDU): Ark Invest’s ARKK fund bought 82,913 shares.

Benzinga's Edge Stock Rankings show that Alibaba stock has a Quality in the 36th percentile. Here is how it stacks up against other big AI heavyweights.