Cathie Wood is leaning into a less obvious winner in the artificial intelligence hardware race, noting that the market is overlooking a key shift in how AI systems are being built.
In a new Global Money Talk interview, the ARK Invest founder explains why she believes Advanced Micro Devices (AMD) is unusually well-positioned as AI workloads grow more complex and power-constrained.
According to Wood, one of the biggest constraints in AI right now is energy and efficiency, which is pushing buyers to be far more selective about the chips they deploy.
“Yeah, there’s the thought with power being the constraint here. It probably means that companies are going to choose the best chip, especially when it comes to the CUDA (compute unified device architecture) software around the Nvidia chip.”
But Wood says Nvidia (NVDA) is not the only company benefiting from the dynamic. She points to AMD’s strengths in memory capacity as an underappreciated advantage as AI models shift toward longer context windows and deeper reasoning.
“One of the things that AMD has that Nvidia does not have yet, although it’s on the roadmap, is it has much more memory for these large context windows that we need for reasoning. And so that’s something that’s benefiting AMD short term.”
She also highlights AMD’s growing presence outside of GPUs, noting that the company has quietly taken meaningful share from Intel in CPUs.
“And one of the other things that it has is it’s taking share from Intel in the CPU space. It’s up to 40% share. That’s unbelievable.”
Wood says conversations with OpenAI reinforced her view that the AI stack is broader than many investors assume, and that future systems will depend on both types of chips working together.
“In speaking with OpenAI during a number of our conversations, they say, we think people are missing the fact that we need both GPUs and CPUs. So for right now, we think AMD is in a very good spot.”
Data shows that ARK Invest currently holds about $258.4 million worth of AMD shares, representing roughly 3.35% of its assets under management.
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