BUSINESS

Cathie Wood, chief of Ark Investment Management, often adds to her favorite stocks when prices swing.

This time, according to an email shared with TheStreet, she’s buying $3.5 million of Robinhood stock, reversing her recent sales as the online brokerage rebounds from its second-quarter lows.

Last year, Wood’s flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Ark Innovation ETF (ARKK) is up 12.09% as of Sept. 4, while the S&P 500 surged 12.75%, Yahoo Finance data shows.

Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.

Those swings have weighed on Wood’s long-term gains. As of Sept. 4, her Ark Innovation ETF has delivered a five-year annualized return of -7.02%, while the S&P 500 has an annualized return of 11.22% over the same period, according to data from Morningstar.

Cathie Wood says AI could help support high corporate profits

Wood typically focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She believes these businesses have strong growth potential, but their volatility often brings fluctuations in the Ark’s funds.

Over the decade ended 2025, the Ark Innovation ETF wiped out nearly $5 billion in investor wealth, according to a report by Morningstar’s analyst Amy Arnott. That made it the fourth-biggest wealth destroyer among mutual funds and ETFs in the ranking. 

Wood remains optimistic about AI, which she sees as a major driver of productivity, economic growth, and corporate profits in the years ahead.

In an August post on X, Wood said U.S. corporate profits remain unusually strong, with domestic profits before tax at 13.2% of GDP, a level she said is near multi-decade highs. 

Related: Cathie Wood buys $44.5 million of tumbling tech stock

Some of that strength came from the massive monetary and fiscal stimulus during the pandemic, but Wood believes another factor is helping sustain margins today: companies are leaning into AI and productivity gains to protect them.

“I think we’re still early in seeing how far that can go,” she said, adding that companies that use AI effectively will “separate themselves from the ones that don’t.”

Not all investors agree with Wood’s optimism. Over the past 12 months through Sept. 3, the Ark Innovation ETF saw roughly $1.71 billion in net outflows, according to data from ETF research firm VettaFi. 

Over the past 12 months through Sept. 3, the Ark Innovation ETF saw roughly $1.71 billion in net outflows.Bloomberg / Getty Images

Cathie Wood buys $3.5 million of Robinhood stock

On Sept. 4, Ark Innovation ETF bought 28,589 shares of Robinhood Markets Inc (HOOD), according to Ark’s daily trading information. Based on the latest closing price of $122.11, these stocks were worth about $3.5 million.

That purchase reversed Wood’s recent moves in Robinhood. She sold 25,009 Robinhood shares on Aug. 26 after unloading a much larger amount in July.

Robinhood is known for its commission-free trading platform for investors to buy and sell stocks, and also crypto. It generates revenue through payment for order flow (PFOF), interest earned on customer cash balances, margin lending, and subscription services. 

Robinhood stock price often moves alongside Bitcoin because higher crypto prices tend to boost investor interest and trading activity on its platform. The shares have been on a roller coaster this year, falling below $70 during the second quarter as Bitcoin fell to about $68,000. 

Related: Cathie Wood buys $53 million of popular semiconductor stock

During the second quarter, Robinhood’s transaction-based revenue rose 44% year over year to $776 million, but that was partially offset by a 38% drop in crypto revenue to $100 million, the company said in a press release.

But over the past month, Robinhood stock soared more than 30%, as bitcoin surged 23% to nearly $80,000 during the same period. Investor worries eased for now as Treasury yields fell and concerns about a Fed rate hike cooled.

Year-to-date, Robinhood stock is up 7.97% as of Sept. 4.

Some analysts are bullish on Robinhood stock. Deutsche Bank analyst Brian Bedell raised his Robinhood price target to $136 from $115 on Sept. 4 and kept a buy rating, according to The Fly.

The analyst cited faster-than-expected growth in Robinhood Chain fee revenue. Robinhood Chain is the company’s blockchain network, allowing people to trade tokenized assets.

Robinhood’s daily chain revenue remained below $200,000 through mid-August before jumping to $3.38 million on Sept. 1 and $4.01 million on Sept. 2, according to DeFiLlama data cited by the analyst.

Deutsche Bank said the growth is running well ahead of its previous forecasts and now expects Robinhood Chain revenue to surpass a $100 million annualized run rate for the foreseeable future.

Robinhood is now the seventh largest holding in the Ark Innovation ETF.

Top 10 Holdings in the Ark Innovation ETF by weight as of Sept. 4, 2026:

Tesla (TSLA) – 9.62%

SpaceX (SPCX) – 6.28%

Circle Internet Group (CRCL) – 6.06%

Tempus AI (TEM) – 5.17%

Coinbase (COIN) – 4.76%

CRISPR Therapeutics (CRSP) – 4.55%

Robinhood Markets (HOOD) – 4.28%

Shopify (SHOP) – 3.37%

Twist Bioscience (TWST) – 3.23%

10x Genomics (TXG) – 2.92%

Wood remains bullish on Bitcoin, pointing to its recent breakout relative to gold as a positive sign in the Sept. 5 episode of Ark’s “In The Know.”

“We’re big bulls on Bitcoin,” Wood said, calling it “a technology revolution” and “a new global monetary system.” 

Wood also sees Bitcoin as a potential form of insurance as disruptive technologies reshape the economy. She expects AI and other technologies to put pressure on traditional businesses, potentially creating more financial risks.

“We think there will be counterparty risk if enough companies get into trouble,” Wood said. That could benefit both Bitcoin and gold, though she believes Bitcoin can function as “both a risk-off and a risk-on asset.”

Other than buying Robinhood shares, Wood’s latest trades included buying Veracyte (VCYT), Intellia Therapeutics (NTLA), and 3iQ Solana Staking ETF (SOLQ.U), while selling Tempus AI (TEM) and Twist Bioscience (TWST).

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Why we love this deal

Getting to work with the current gas prices has been far more expensive than it used to be. That’s why the popularity of e-scooters and e-bikes has exploded in recent months. They offer the convenience of a car or motorcycle, without all the fuel and repair costs. Thanks to Walmart, you can now get an impressive e-bike at an equally impressive discount, and we think that’s the best possible combination to keep you on the move and under budget.

The 5th Wheel Electric Bike is on sale for only $398, which is an incredible 43% off the regular price of $700. If you’re in the market for an e-bike that won’t break the bank, then you’ve found it. This is a Flash deal, though. That means you’d probably better act quickly if you want to take advantage before it disappears.  

5th Wheel Electric Bike, $398 (was $700) at Walmart

Courtesy of Walmart

Shop at Walmart

Why do shoppers love it?

This bike has everything you want in modern personal transportation. The 350-watt electric motor is quiet and efficient. The battery is removable, which makes it extra convenient for charging. The bike takes roughly 5 hours to reach peak charge and has a distance capacity of 22 to 31 miles when fully powered. Another nice feature of the battery is that it’s completely waterproof, so you don’t have to worry about it getting damaged when left exposed to the elements.

In addition to the 31-mile max distance, the bike also has a top speed of 20 miles per hour. That means you can likely get to most nearby destinations in roughly the same amount of time that it might take in your vehicle. What’s more, you’ll be saving money on gas, not to mention saving the environment. There’s nothing like a zero-emissions commute to make you start the day off with a smile. A small basket might have been a nice addition, though size and style is more of a personal choice, so it may be best that it wasn’t included.

The bike also has a front and rear disc braking system, which offers an added sense of safety, especially considering its high-speed capabilities. An integrated LCD display helps you keep track of your milage, speed, battery level, and any errors. 

While all the technical specs of the bike are worth cheering about, it’s quite the looker as well. The dark blue finish is sleek, modern, and stylish. It’s also available in a light teal option. While a neutral black model would be nice, this cool look should suit almost anyone. The front light and bell make night riding far safer as well. The bike is available with super suspension as an added option, though that adds to the price.  

Related: Walmart’s $410 electric scooter goes up to 20 MPH and is nearly 50% off

Pros and cons of the 5th Wheel Electric Bike

Pros

Power source: The rechargeable battery makes for a convenient renewable source of energy.

Mileage range: With a maximum range of 31 miles, the bike allows you to cover long distances without worrying about running out of “juice.”

Max speed: The bike can reach a maximum speed of 20 miles per hour, making it a great option for daily commutes.

Information display: The integrated LCD screen keeps you informed on a host of info about your ride.

Cons

Storage: While a basket would be convenient, it’s hard to know what style and size might be universally appreciated.

Colorways: Though the two available color variants are attractive, some might prefer a neutral black option.

Walmart shoppers were thrilled with the bike. One praised it as “excellent quality at an amazing price.” The same buyer added, “I couldn’t be happier…The quality is outstanding, especially for the price…The frame feels sturdy and well-built…It honestly exceeded my expectations.”

Shop more deals 

Setohet Electric Bike, $300 (was $600) at Walmart

Dyu Folding Electric Bike, $230 (was $479) at Walmart

The 5th Wheel Electric Bike will have you zooming to your destination in perfect silence. Of course, that doesn’t include your jubilant “woohoos” due to the fun and the savings you’ll get with this bike. At just $398, it has us cheering as well.

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Nvidia’s latest earnings report was supposed to be about one thing: artificial intelligence chips. Instead, buried inside the numbers was a threat aimed squarely at two companies that have never had to worry much about Nvidia before.

The chipmaker is quietly building a business that could reshape a market AMD and Intel have controlled for decades, and the early numbers suggest it is happening faster than either rival expected.

Nvidia’s new CPU business is growing faster than AMD and Intel’s

Nvidia reported second-quarter fiscal 2027 revenue of $96.2 billion, up 106% year over year, with data center revenue reaching $89 billion, up 117%. Buried inside that growth was a smaller but faster-growing business built around server CPUs, The Motley Fool reported.

Nvidia’s Grace server CPU has been around since 2021. Trailing 12-month revenue from Grace has crossed $5 billion, mostly sold as part of larger server systems. Vera is the next step, and it is a different play entirely, a standalone CPU sold as its own product, not bundled into a rack.

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Chief Financial Officer Colette Kress told analysts on the earnings call that Nvidia sees demand for approximately $20 billion in total server CPUs this fiscal year, positioning the company to become a leading CPU supplier. Nvidia has separately cited the server CPU total addressable market at $200 billion, and it expects its own CPU revenue to more than double in fiscal 2028, according to the earnings call transcript.

Nvidia CEO Jensen Huang has framed the push as part of a broader shift toward autonomous AI agents. “Today, the vast majority of AI is prompted by people,” Huang said. “In the future, every company will have a whole bunch of agents; those agents are running continuously.”

Why AMD and Intel should be worried

The threat is not just the dollar figure, but also the growth rate. Nvidia’s overall data center business grew faster last quarter than either AMD’s or Intel’s comparable segments, despite starting from a dramatically larger revenue base. The combination is difficult for smaller rivals to match on pure momentum.

Nvidia’s approach also sidesteps a head-on fight. Rather than competing purely on CPU specs, Nvidia is integrating Vera into its Rubin server rack scale platform, meaning hyperscalers buying the full platform acquire Nvidia CPUs, reducing the role of x86 CPUs from AMD and Intel.

Morgan Stanley called the $20 billion server CPU forecast “unexpected,” since it lands at or above the level of established market leaders. It added that the figure initially caused real skepticism among analysts before customer checks confirmed large-volume potential, SiliconAngle reported.

Nvidia is quietly building a business that could reshape a market AMD and Intel have controlled for decades.Bloomberg / Getty Images

How Nvidia AMD and Intel stocks stack up right now

AMD’s data center segment, which includes both GPUs and server CPUs, posted $6.7 billion in second-quarter revenue, up 107% year over year.

AMD’s overall x86 server CPU market share reached 34.5% in the quarter, up 7.3 percentage points, while Intel’s share fell to roughly 65.5% of the server CPU market, according to CNBC.

Intel’s data center and AI segment revenue rose 59% year over year to $6.3 billion in the same quarter. Neither AMD nor Intel breaks out standalone server CPU revenue separately from their broader data center totals, making direct comparisons to Nvidia’s Vera figures imprecise but still directionally telling.

Neither rival is standing still on the product side. AMD’s upcoming Venice EPYC processor is expected to top out at 256 cores, well above Nvidia’s 88-core Vera chip and Intel’s current 128-core Granite Rapids lineup.

Nvidia’s stock jumped 8.7% in the session following its earnings report, adding roughly the value of a mega-cap company to its already sizable market capitalization, The Motley Fool reported.

The server CPU market itself is expected to continue expanding, regardless of which company wins the largest share. AMD has projected the total addressable market could reach $201 billion by 2030 at a 44% compound annual growth rate, leaving room for multiple winners, even if Nvidia’s growth rate outpaces its rivals in the near term, as TheStreet reported.

What this means for chip investors

For Nvidia investors, this is a second revenue line on top of a GPU business that is already pulling away from the field. Customer concentration and China export risks are real concerns. But a CPU business approaching $20 billion this year makes those risks easier to absorb.

For AMD and Intel investors, the dollar figure is not the issue. Both companies still have deeper enterprise relationships and larger installed bases than Nvidia in the CPU market.

The problem is the bundle. When a hyperscaler buys a Rubin rack, Nvidia CPUs come with it. That is how AMD and Intel lose sockets without ever losing a competitive benchmark.

Investors across all three stocks should watch fiscal 2028 guidance closely when it arrives, since Nvidia’s own projection that CPU revenue will more than double next year is the clearest test of whether this threat is accelerating or leveling off.

It will also reveal whether AMD and Intel can defend share fast enough to keep the server CPU market from becoming another Nvidia stronghold.

Related: Jim Cramer has a strong message for Nvidia stock investors