Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought
Cathie Wood kicked off the new trading week with one of her busiest shopping days of 2025. The CEO, co-founder, and ace stock picker at Ark Invest added to 15 of her existing stakes -- including Advanced Micro Devices (NASDAQ: AMD), Shopify (NASDAQ: SHOP), and Taiwan Semiconductor Manufacturing (NYSE: TSM) -- in her largest exchange-traded fund on Monday.
She sold only one stock in that aggressive growth fund, paring back her position in Circle Internet Group (NYSE: CRCL). Circle is the stablecoin issuer that also happens to be the market's hottest stock this month. She has now sold shares of Circle in four of the past six trading days.
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Let's get back to Wood's shopping list. If Wood is buying more Advanced Micro Devices, Shopify, and Taiwan Semiconductor, then they're wroth a closer look.
1. Advanced Micro Devices
AMD is starting to roll again. The maker of microprocessors and graphics processing units (GPUs) is finally being recognized for its growing role in the artificial intelligence (AI) revolution, with the shares soaring 69% above their early April low. But AMD still has a long way to go before returning to its previous highs. Despite the big step up in the past two months, AMD has still surrendered 20% of its value over the past year, and the stock is 43% below last year's high-water mark.
Wood isn't the only one warming up to AMD on Monday. Melius Research upgraded its opinion from hold to buy. It also boosted its price target from $110 to $175, implying 35% in additional upside beyond the recent bounce.
Image source: Getty Images.
AMD's business is growing as demand keeps rising for the AI chips necessary in the buildout of data centers. Revenue is accelerating for the fourth quarter in a row. AMD's top-line climb of 36% in its latest quarter is shy the growth rate of the AI leaders, but there's certainly enough potential to share the wealth.
Melius points out that the AMD story has gotten better in recent months, and not just because of the stock's upticks. Demand for AMD's GPUs should continue to rise for at least the next couple of years, and the company believes that it might top $8 a share in earnings within two years. That's a lofty goal. Analysts see AMD delivering an adjusted profit just shy of $7 a share in 2027.
2. Shopify
No one can take away Shopify's status as a classic growth stock, but it's an investment that has also meandered if you choose the right starting lines. Shopify is up just 20% over the past five years, clocking in with a modest 3% rise so far in 2025. But the e-commerce platform operator is faring better as a business.
Shopify has delivered at least a dozen consecutive years of better-than-20% annual revenue growth, and this year is off to a strong start. Its 27% year-over-year revenue increase through the first three months of this year is its healthiest top-line growth for the first quarter in four years. Its guidance in May calls for another year of growth north of 20%. It also sees its free cash flow margin sticking to the impressive 15% it scored in the first margin for the balance of the year.
3. Taiwan Semiconductor Manufacturing
Taiwan Semiconductor has a beautiful five-year chart compared to AMD and Shopify, but it's also up an ordinary 5% this year. However, business at TSMC is starting to pick up, just as it is for the other two companies in this piece.
Revenue climbed 42%, or 35% in U.S. dollars, in its latest quarter. That's the strongest top-line move for the world's largest foundry in more than two years. There may be some cyclicality here, but when TSMC is rolling, it operates at a high level, and it's rolling right now. The 43% net margin it scored in its first quarter means that $0.43 in every dollar of revenue it generated made it down to the bottom line. That's not a fluke. It has come through with a net margin north of 30% for the past 21 years.
TSMC is currently the ninth most valuable company by market cap among U.S.-exchange-listed companies. It's trading for 22 times this year's profit target. That isn't a cheap multiple, but it's lower than many of the names that are higher on the list. Accelerating growth with net income that's growing even faster can do wonders for a stock.
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Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Shopify, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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