Cathie Wood Goes Bargain Hunting: 3 Stocks She Bought Last Week

Cathie Wood has a tendency to add to some of her favorite positions when they're falling, and she had plenty of opportunities to make that happen last week. The founder-CEO and chief investment officer of Ark Invest bought shares of Nvidia (NASDAQ: NVDA), MercadoLibre (NASDAQ: MELI), and Advanced Micro Devices (NASDAQ: AMD) last Thursday.

It was the market's biggest single-day decline in more than 19 months. With the three stocks sliding, she added to her existing stakes in her family of exchange-traded funds (ETFs). Let's take a closer look.

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1. Nvidia

Nvidia stock took a 9% hit during Thursday's drawdown. The artificial intelligence bellwether's shares have fallen 23% since notching last month's all-time high. Demand for its AI chips remains strong, but market sentiment has turned on the infrastructure plays.

Wood apparently sees this as a buying opportunity, and I have to agree. There is growing pushback in the U.S. against the build-out of data centers needed to fuel demand for agentic AI solutions. It's a reasonable concern, but this is a global revolution. Other countries with more to gain financially -- and less to lose politically -- will pick up the slack. Nvidia will continue to deliver strong high-margin growth.

You won't have to wait long to get a fresh read on Nvidia. It reports its fiscal third-quarter results next week. Momentum has been strong in recent reports. Revenue has been on a tear, accelerating for more than a year.

• Q2 FY 2026: 56%
• Q3 FY 2026: 63%
• Q4 FY 2026: 73%
• Q1 FY 2027: 85%
• Q2 FY 2027: 106%

Nvidia's guidance calls for revenue to slow to 89% in next week's report. Analysts see earnings per share rising 90%. Set aside that Nvidia has delivered "beat and raise" performances through most of the last two years of financial updates, and warm up to the value of today's opportunity.

Nvidia is now trading at 20 times this fiscal year's earnings, but less than 12 times next year's profit target. Growth may slow, and today's chunky margins will be challenging to sustain.

2. MercadoLibre

If you think Nvidia has fallen out of favor, MercadoLibre has cascaded out of public fancy. Shares of the Latin American e-commerce and fintech leader tumbled 12% during Thursday's sell-off. MercadoLibre stock has shed nearly half of its value since peaking two summers ago.

Last week's slide was exacerbated by MercadoLibre delivering mixed third-quarter results after Wednesday's market close. Revenue rose a better-than-expected 45% for the period, but it was just 41% year-over-year growth on a currency-neutral basis. It's a sequential dip from the 50% reported growth it delivered in the second quarter, but that was its strongest top-line jump in years.

The report becomes a bit problematic as you work your way down the income statement. The operating margin is contracting as MercadoLibre lowers its free-shipping minimums to sustain its market dominance in Brazil. Concerns about MercadoLibre becoming a bigger player in the credit market are also growing louder. Its provision for doubtful accounts rose 65%, outpacing the $18 billion credit portfolio's 62% increase over the past year.

MercadoLibre is now trading for 28 times next year's earnings estimates. This is more than double Nvidia's multiple, but reframe this in a company-specific context. If the shares are still trading at this point a year from now -- and earnings come in as expected -- it would be the cheapest that MercadoLibre has been on a trailing P/E basis in more than a decade.

3. Advanced Micro Devices

The hardest hit of the three stocks was Advanced Micro Devices. AMD surrendered 17% of its value, but it's also the best year-to-date performer, and it isn't even close. Shares of the semiconductor giant have still more than doubled in 2026.

AMD is riding the same AI boom as Nvidia. At 25 times next year's earnings, it's trading at a multiple more than double that of Nvidia. Nvidia may seem to be the safer bet for investors, but AMD is expected to grow faster than its larger competitor next year.

With revenue growth expected to accelerate for the fourth straight year, the provider of central processing units (CPUs) and graphics processing units (GPUs) has also consistently landed ahead of Wall Street's quarterly earnings estimates for more than a year. It's a good sign, and perhaps an even better buying opportunity.

Rick Munarriz has positions in MercadoLibre and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, MercadoLibre, and Nvidia. The Motley Fool has a disclosure policy.