On Tuesday, Cathie Wood-led Ark Invest made significant trades involving major tech companies. The firm increased its holdings in NVIDIA Corp and Advanced Micro Devices Inc, while also making notable moves with Airbnb Inc and Microsoft Corp. These trades reflect Ark’s strategic positioning amid evolving market conditions.
The Nvidia Trade
ARK Autonomous Technology & Robotics ETF fund acquired 11,000 shares of NVIDIA. On Tuesday, Nvidia shares ended the day at $98.89. The Ark trade was valued at $1.09 million. This move comes amid recent challenges for Nvidia, involving new U.S. export restrictions on its H20 chip to China. The chipmaker’s failure to inform key clients about these restrictions has raised concerns. Despite these hurdles, Ark’s investment suggests confidence in Nvidia’s long-term potential, particularly in the AI and gaming sectors.
The AMD Trade
On the same day, Ark’s ARKQ fund purchased 24,800 shares of AMD. The chipmaker has faced a decline in its stock price due to U.S. government restrictions on AI chip exports to China. These restrictions have sparked worries about geopolitical risks and supply chain disruptions. For the day, AMD shares closed at $86.26. The Ark purchase was valued at $2.14 million.
The Airbnb Trade
ARK Fintech Innovation ETF and ARK Next Generation Internet ETF funds collectively bought 80,361 shares of Airbnb. On Tuesday, the shares closed at $114.91, valuing the Ark purchase at $9.23 million. The company has been experiencing robust growth, as it surpassed fourth-quarter 2024 earnings expectations, driven by increased bookings in “nights and experiences.” The company’s CFO, Ellie Mertz, noted significant market share gains from traditional hotels. Ark’s investment aligns with Airbnb’s strong performance and its potential for continued expansion in the travel sector.
The Microsoft Trade
In a strategic move, Ark’s ARKW fund sold 26,405 shares of Microsoft valued at approximately $9.7 million based on the latest closing price of $366.82. Despite Microsoft halting expansion plans for data centers, analysts still rank it among the top investment picks, as reported by Bloomberg. This decision reflects Ark’s tactical rebalancing, possibly to allocate resources to other emerging opportunities.
Other Key Trades:
Sold 268,284 shares of UiPath Inc across ARKF and ARKW funds.
Sold 154,591 shares of Kratos Defense and Security Solutions Inc in the ARKQ fund.
Bought 303,603 shares of 10X Genomics Inc in the ARKG fund.
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