Cathie Wood-led ARK Investment Management bought over 26,200 shares of $Advanced Micro Devices (AMD.US)$ on Wednesday when the stock tanked over 9%, dragged by weak guidance and a slump in PC revenue.

What Happened: The $ARK Next Generation Internet ETF (ARKW.US)$ bought AMD shares at an estimated valuation of over $2.1 million based on Wednesday's closing price.

AMD reported a 9% decline in its first-quarter revenue at $5.35 billion. The company's client revenue fell by a whopping 65%, while data center revenue was largely unchanged in the first quarter. AMD's GAAP gross margin contracted by 4 percentage points year-over-year to 44%.

For the second quarter of 2023, AMD said it expects revenue to be approximately $5.3 billion, plus or minus $300 million. The revenue guidance trailed the consensus estimate of $5.49 billion. AMD expects non-GAAP gross margin to be approximately 50%.

AMD shares have lost about 15% in last one month but are still up over 27% since the beginning of the year.

Bernstein analyst Stacy Rasgon said in a client note, "Even if Intel didn't gain share this quarter, it seems unlikely that they lost any either," reported Reuters. "While we will see if Intel's 2024 roadmap holds water or not, the competitive environment next year is likely to get tougher for AMD," she said.

Major Buy: Funds operated by ARK also bought over 564,000 shares of $Pacific Biosciences of California (PACB.US)$ at an estimated valuation of over $6.6 million based on Wednesday's closing price.