Cathie Wood’s ARK Invest ETFs executed several significant portfolio changes on Tuesday, November 25, as disclosed in their daily fund updates. The renowned hedge fund manager made key purchases in sectors such as big tech, artificial intelligence infrastructure, and cryptocurrency-related companies. Conversely, ARK reduced its positions in notable firms like Advanced Micro Devices (AMD) and Palantir Technologies (PLTR).
These transactions came in the wake of considerable volatility in the AI chip market, influenced by reports that Meta Platforms might incorporate custom tensor processing units (TPUs) from Alphabet. This development negatively impacted stocks of Nvidia and AMD while positively affecting Alphabet’s shares.
Among the most substantial trades was ARK’s acquisition of 174,293 shares in Alphabet, totaling approximately $56.4 million across various ETFs. This strategic move occurs as Alphabet is on the verge of reaching a $4 trillion market valuation, fueled by optimism regarding its Gemini AI model and the potential partnership with Meta for using Google’s chips in upcoming data centers.
In addition, ARK purchased 33,837 shares of Meta, valued at around $21.5 million. Meta’s stock saw a 4% increase on speculation regarding its collaboration with Google, despite ongoing scrutiny from regulators and renewed calls for investigations into its advertising practices.
Moreover, Wood intensified her investment in CoreWeave, acquiring 396,198 shares worth about $28.2 million, even as the stock experienced a 3% decline on concerns about its dependency on Nvidia GPUs. Notably, the fund had previously bought 437,345 shares of CoreWeave valued at roughly $31.3 million just the day prior, indicating a consistent buying trend.
ARK also expanded its stake in Block, obtaining 212,538 shares valued at approximately $13.5 million. It further increased its commitment to the ARK 21Shares Bitcoin ETF (ARKB) by adding another 96,200 shares and boosting its investment in Circle Internet Group with 108,450 shares worth around $7.6 million, showcasing ongoing confidence in the digital finance sector despite recent cryptocurrency market fluctuations.
On the selling front, ARK decided to reduce its holdings in AMD, offloading 106,651 shares estimated at near $22 million, driven by concerns over Meta’s reported shift to Google’s chips. Additionally, ARK exited its position in Palantir by selling 354,955 shares valued at about $58 million, capitalizing on a recent rebound in the stock.
The fund also divested 216,331 shares of Exact Sciences and 397,713 shares of GitLab Inc., further adjusting its portfolio in response to the evolving market conditions.
