Recently, I’ve been paying attention to the latest developments in AI chip stocks, and I found that Cathie Wood is once again doing what she’s best at—making a contrarian move when the stock price crashes. This strategy has worked for her again and again, and it’s also why her flagship fund has risen more than 50% over the past three years.

Last month, AMD’s stock price plunged 17% in a single day. Most people may have panicked and sold, but Cathie Wood instead massively built positions at this time. At first glance, this drop looks quite frightening, but if you look at the logic behind it, it becomes clear: although AMD’s earnings data is strong, the market’s expectations for demand for AI chips appear to be even higher. In the long run, the AI chip market size could reach the trillion-level, and as AMD is Nvidia’s main competitor, its position in this race will not be shaken passively. The current valuation (29 times forward earnings) is already much cheaper than a few months ago when it was 60 times, and Cathie Wood has clearly spotted this opportunity. She has added AMD to five funds—such as the Innovation Fund, the Autonomous Technology Fund, and the Next Generation Internet Fund—and AMD is currently the sixth-largest holding in the Innovation Fund.

Another stock she bought recently is CoreWeave. The company’s stock has fallen about 50% from its peak, which looks pretty grim, but Cathie Wood still made a move recently. CoreWeave’s business model is quite interesting: they provide AI computing power, and customers can rent their Nvidia GPUs directly without having to invest in infrastructure themselves. In the most recent quarter, revenue grew by triple digits, and demand has indeed been very strong. The stock price decline is mainly because the market is worried about AI stock valuations being too high and whether high spending can be sustained. But in the long run, these short-term concerns are not enough to change CoreWeave’s growth outlook.

I think this is Cathie Wood’s investment style—she isn’t chasing momentum; she’s looking for great companies that have been unfairly sold off. When market sentiment is extremely pessimistic, she sees opportunities instead. This contrarian thinking is especially likely to generate excess returns in fast-growing sectors like AI. If you’ve also been keeping an eye on these tech-innovation companies recently, Gate’s market data can help you track these changes more effectively.