Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Cathie Wood had one of her busiest days on the trading floor in months on Tuesday. The co-founder, CEO, and ace stock picker at Ark Invest added to 17 different existing positions across her aggressive growth exchange-traded funds in a single day.

I think some of her more interesting purchases on Tuesday were Advanced Micro Devices (NASDAQ: AMD), Toast (NYSE: TOST), and Shopify (NYSE: SHOP). Let's take a closer look.

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1. Advanced Micro Devices

Don't assume that the the wave of investor interest in artificial intelligence (AI) stocks is lifting all ships -- or chip stocks. Advanced Micro Devices is trading 8% lower in 2025 and down a blistering 36% over the past year.

The business is holding up better than the stock chart. AMD served up fourth-quarter results last week that seem impressive on the surface. Revenue rose 24%, a far cry from the jumps being posted by the market darling AI stocks, but this was still its strongest year-over-year increase in two years.

Revenue for its flagship data centers segment that now accounts for more than half of its business soared 69% to $3.9 billion. Its smaller client segment revenue rose a hearty 58%. The other side of this coin is that AMD's gaming and embedded segments experienced 59% and 13% top-line slides, respectively.

Image source: Getty Images.

Revenue topped market expectations, and net income landed right on what the Wall Street pros were modeling. But that wasn't enough to impress investors despite the depressed semiconductor stock. Guidance calls for revenue to accelerate again to 30% growth in the current quarter, but this represents a 7% sequential dip. It didn't help that AMD's earning call also warned of a sequential dip in sales for its data center business.

More than a dozen analysts slashed their price targets on the stock last week, sending the shares to a fresh 52-week low. Is this a good time to follow Wood into AMD or wait it out until there's more clarity? Bulls will argue that AMD is too cheap to ignore. The stock is now trading at a reasonable multiple of 23 times this new year's projected earnings and less than 18 times next year's forecasts. Bears can counter that several analysts have lowered their income estimates since last week's financial update.

Momentum is also going the wrong way for AI stocks lately, but the AMD bulls have the more compelling argument.

2. Toast

Unlike AMD, Toast is heating up in the kitchen. Shares of the popular cloud-based point-of-sale platform provider for restaurants have more than doubled over the past year. It's easy to see Toast's appeal, even if you haven't recently dined at one of the many eateries now leaning on Toast to close out customer transactions, manage third-party app orders, and tackle a growing number of behind the scenes operating functions.

There are now 127,000 locations on Toast, a 28% surge over the past year. Top-line growth has hinged largely on the success of growing its restaurant count. It's already a staple at 13% of the country's eateries, but there's still a lot of potential expansion on Toast's plate. The bottom line is no longer a cause for investor indigestion. After years of losses, Toast has turned profitable on a reported basis in back-to-back reports.

The stock may not seem cheap at 45 times forward earnings or even 33 times next year's projected net income. However, scalability should help future profits exceed revenue gains for the next few years. You won't have to wait long for the next serving of fresh financials. Toast reports its fourth-quarter results next week, after the market closes on Wednesday.

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