Cathie Wood is making another big bet on the future of artificial intelligence and space technology. Her investment firm, ARK Invest, added roughly $28.7 million of Taiwan Semiconductor Manufacturing (TSMC) and SpaceX [NASDAQ:SPCX] shares — trimming investments in Amazon [NASDAQ:AMZN], Alphabet [NASDAQ:GOOG] and Shopify [NASDAQ:SHOP] to help fund part of the purchases.
The move offers fresh insight into where the high-profile investor sees the strongest long-term growth opportunities.
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Wood’s investments
ARK purchased 37,916 TSMC shares worth about $14.2 million and 128,932 SpaceX shares valued at roughly $14.5 million. The SpaceX shares were bought after the stock’s post-IPO decline.
The purchase was funded in part by the selling of roughly $1.1 million each of Amazon and Alphabet and about $5 million of Shopify. The selling of Amazon came just hours before it released its July 30 second-quarter earnings report, as investors eyed the company’s AI spending and cash flow. Amazon beat Wall Street’s expectations, pushing shares to an all-time high on Monday.
TSMC is the world’s largest contract chip maker and manufactures chips for AI giants like Nvidia. The Taiwanese company recently reported second-quarter revenue of $40.2 billion, marking a 34% increase year over year. However, the stock has shed roughly 7% of its value over a month. Still, the company’s growth and its central role in the AI boom make a case for Wood’s investment.
On the other hand, SpaceX is a more volatile test for ARK. The Elon Musk-led space technology company has been rocky since its IPO debut on June 12. It reported a loss of more than $500 million in its first earnings report, and its stock is down by about half from its all-time high.
Should investors follow Wood’s moves?
This latest round of investments offers clues as to where Wood sees the strongest long-term growth opportunities, signalling a deeper commitment to semiconductor manufacturing and space technology.
It remains unclear what prompted ARK to trim its holdings in Amazon, Alphabet and Shopify. The move could indicate Wood is moving away from some large-cap tech names in favour of companies she believes will benefit more greatly from the AI boom. It could also just be a modest trim to help fund new investments.
