Out of six actively managed ETFs under Cathie Wood’s ARK Invest, ARK Next Generation Internet ETF (ARKW) is the best-performing year-to-date at 34%, closely followed by ARK Fintech Innovation ETF (ARKF) at 32%.In the same period, ARK Genomic Revolution ETF (ARKG) is Wood’s only negative performer at 2.2%.
Of all the combined holdings of 100 stocks across ARK ETFs, Tesla (TSLA) stock still holds the largest weight at 8.3% (~$937.5M), followed by Coinbase (COIN) at 7.85% (~$887.9M). However, ARK Invest tends to hold the same stocks in multiple ETFs, as a byproduct of having actively managed ETFs. By far, Wood’s most sold stock throughout June has been Circle Internet Group (NYSE: CRCL). Owing to a renewed stablecoin revolution, CRCL shares are up 164% YTD, having created an excellent opportunity to lock in profits.
The question is, which individual stocks gained Cathie Wood’s attention the most on the buy side?
BWX Technologies, Inc. (NYSE)
Mid-June, ARK Innovation ETF (ARKK) gained $30.7 million worth of BWXT shares as one of the top buys this month. We covered BWX Technologies in November 2024, as exposure to nuclear application in both commercial and military spheres. Without BWX’s expertise in nuclear reactors and components, it is difficult to imagine how the U.S. would be able to project its global power via nuclear-powered aircraft carriers and submarines.
BWX is also at the forefront of developing micro-nuclear reactors under Project Pele, aimed at critical missions. Likewise, the company leads the trend towards modular nuclear reactors, as we covered in early June related to nuclear power feeding AI demand.
In addition to developing new technology to compete with rapidly advancing China, BWX is servicing the existing commercial nuclear fleet in the US. After President Trump issued multiple executive orders (EOs) to remove bureaucratic hurdles against nuclear energy, it is likely that BWX’s role in the US nuclear ecosystem will increase further.
It is also likely that BWX will partake in EU’s efforts to renew its nuclear capacities with small modular reactors (SMRs), which have already been designated as “green”.
Year-to-date, BWXT stock is up 28%, presently priced at $141.87 per share. From mid-June to this Monday, ARKK increased BWXT exposure from 215.83k to 408.36k shares. According to WSJ’s forecasting data, the average BWXT price target is $137.72, with the bottom of $105 and a ceiling price target of $177.60 per share.
Archer Aviation Inc. (NYSE: ACHR)
Another stock that we extensively covered on multiple occasions, ARKK gained ACHR exposure to $28.4 million in June, having risen from 339.76k shares in August 2023 to 17.52M shares as of this Monday.
Most recently in mid-June, we noted that Archer Aviation is not just the most realistic eVTOL stock, but one that is slowly becoming a part of a wider push for AI-powered military. In addition to having a partnership with Palantir Technologies (NASDAQ: PLTR), Archer developed an exclusive relationship with Anduril Industries, the rising star of the military-industrial complex.
With such strong networking, Archer Aviation represents a double exposure – commercialized eVTOL and weaponized next-gen hybrid vertical takeoff and landing (VTOL).
Year-to-date, ACHR stock is up nearly 8%, with heavy upward and downward price swings that require close watch for optimal exposure entry. Presently priced at $10.32, the average ACHR price target is $12.28. The bottom outlook is $4.50, while the ceiling price target for ACHR stock is $18 per share.
Advanced Micro Devices Inc. (NASDAQ: AMD)
Just last week, Cathie Wood added $31.4 worth of AMD shares across three ARKs (ARKF, ARKW and ARKK), elevating AMD exposure from 67.18k in July 2024 to 1.19M as of this Tuesday.
Of all the stocks, AMD has been one of our most covered picks, most recently on Tuesday, having gone up nearly 3% in premarket trading.
Although AMD’s fierce competitor Nvidia holds the GPU dominance, AMD performed exceptionally well with its Ryzen lineup of CPUs against Intel’s offering. So much so that AMD CPUs are now go-to picks for customers, having captured nearly 80% of the CPU market in the US as of March.
This trend was not difficult to see after Intel’s multi-year confidence-erosion with the Raptor Lake lineup. Such an opportunity presents itself once in a decade and AMD fully capitalized on it. Aside from CPUs, AMD made major moves to take Nvidia’s AI market share, from acquiring Silo AI to partnering with Google Cloud.
On the desktop GPU front, it is likely that AMD will take advantage of Nvidia’s fumbled RTX 50 series launch. Not only did these graphics cards jump 2x-3x above their MSRP price, but they were plagued with issues.
Moreover, AMD’s equivalent to Nvidia’s AI-powered frame generation, FSR vs DLSS 4, is now broadly on par. In addition to lower prices, this is another incentive for gamers to pick AMD, as they already tend to pick AMD’s CPUs. It also bears noting that the most advanced gaming console, PlayStation 5 Pro, holds both AMD’s CPU and GPU.
Year-to-date, AMD stock is up 18.9%, presently priced at $143.52. The average AMD price target is $132.54, with the bottom of $95 and a ceiling price target of $200 per share. At the moment, zero analysts recommend selling AMD stock, while 15 are holding and 32 recommend buying.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
