World Stock Watch

Cathie Wood’s Contrarian Bets: 3 Stocks She’s Bullish On

Cathie Wood, the renowned CEO and CIO of Ark Invest, has been on a tear lately, with her flagship exchange-traded fund surging 25% over the past three months and 36% over the past six months. Wood’s aggressive growth style may have stumbled earlier this year, but she’s been making bold moves, adding to her stakes in Advanced Micro Devices, Iridium, and Tempus AI last week.

AMD: A Contrarian Play

Advanced Micro Devices has had a rough year, with its stock plummeting 15% in 2024. Despite generating accelerating revenue growth and a boom in its artificial intelligence (AI) chips business, AMD has been struggling to finish the year strong. Wood, however, sees value in the computing semiconductor specialist, making it her largest purchase on Friday. AMD’s data center segment has been a bright spot, with revenue skyrocketing 122% in its latest quarter.

Iridium: A Specialized Play

Iridium, the data and voice satellite communications specialist, has fallen 28% this year. While its growth has been sluggish, Wood is drawn to its specialized services and strength in both government and commercial markets. Iridium has a loyal subscriber base, with nearly 2.5 million total billable subscribers, and has returned over $1 billion to shareholders since 2021.

Tempus AI: A Healthcare Play

Tempus AI, the provider of practical applications for the healthcare industry, has seen its stock plummet 56% since peaking in November. Wood, however, remains bullish, adding to her position on nine different trading days in December. Tempus AI’s growing line of diagnostic tools holds promise, and Wood’s contrarian bet may pay off in the long run.

The Bottom Line

Cathie Wood’s latest purchases may seem counterintuitive, but she’s known for her bold and contrarian approach to investing. With her track record of identifying winners, it’s worth paying attention to her moves. Will these three stocks bounce back in 2025? Only time will tell, but one thing is certain – Wood is betting big on their potential.