Benzinga - by Shanthi Rexaline, Benzinga Editor.
Cathie Wood-founded Ark Invest on Friday and bought two chip stocks as semiconductor earnings news flow picks up pace this week.
What Happened: Ark, through its ARK Autonomous Technology & Robotics ETF (CBOE: ARKQ) amassed 54,289 shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) on Friday. The purchase would have been valued at $5.24 million based on AMD’s closing price of $96.43 in the session.
Ark’s ARKQ also bought Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) shares on Friday. The exchange-traded fund added 3,046 TSMC shares valued at about $261,926. The Taiwanese company is the largest independent pure-play foundry that designs chips for major global tech corporations, including Apple, Nvidia, and AMD.
TSMC reported earlier this month third-quarter earnings and revenue that declined from a year ago amid weak end-market demand. Both metrics, however, came in above expectations.
Why It’s Important: AMD is scheduled to release its third-quarter results Tuesday after the market close. Analysts, on average, expect the company to report earnings per share of $0.64, down from $0.67 in the year-ago quarter. Revenues may have declined 4.40% year-over-year to $5.37 billion.
John Vinh from KeyBanc calls for AMD to post in-line to slightly higher results and issue an in-line to slightly lower guidance. He expects the chipmaker to benefit from improving PC and server demand but sees a slight delay in the ramp of the MI300A at El Capitan posing a risk to the guidance.
In premarket trading on Monday, AMD rose 1.25% to $97.64 and TSMC added 1.16% to $86.99, according to Benzinga Pro data.
Read Next: Cathie Wood Dumps Over $6M Grayscale Bitcoin Fund This Week As Bitcoin Rallies About 14%, While Amassing $12.4M Worth Of This Crypto-linked Stock
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