Cathie Wood’s ARK Invest ETF made some significant changes to its portfolio on Tuesday, November 25, as outlined in its latest fund disclosure. The well-known hedge fund manager invested in major tech firms, AI infrastructure, and cryptocurrency stocks. At the same time, ARK reduced its holdings in chipmakers Advanced Micro Devices (AMD) and Palantir (PLTR).
Shifts Sparked by AI Chip Developments
This activity came amid fast shifts in the AI chip sector, particularly after reports surfaced that Meta (META) might consider using custom tensor processing units (TPUs) from Alphabet Inc. (GOOGL). Following this news, both NVIDIA (NVDA) and AMD saw declines in their stock prices, while Alphabet’s shares experienced a boost.
Investments in Alphabet and Meta
ARK’s most prominent purchase was in Alphabet, acquiring 174,293 shares worth about $56.4 million across various ETFs. This move aligns with Alphabet’s market valuation nearing $4 trillion, spurred by rising optimism surrounding its Gemini AI model, alongside indications that Meta plans to utilize Google’s chips in future data centers.
The company also added 33,837 shares of Meta, valued at approximately $21.5 million. Meta’s stock rose by 4% amid speculation of a partnership with Google, even as regulatory scrutiny and calls for investigations regarding its advertising practices persist.
Increasing Stakes in Coreweave, Block, and Crypto
Wood expanded his investment in Coreweave (CRWV), adding 396,198 shares valued at roughly $28.2 million, despite the stock dropping 3% due to concerns about its dependency on NVIDIA GPUs. Just a day earlier, ARK acquired an additional 437,345 shares of CoreWeave, indicating a solid buying trend in recent days.
Wood also opted to boost his investment in Block (XYZ) with the purchase of 212,538 shares worth around $13.5 million.
Furthermore, ARK increased its stake in the ARK 21Shares Bitcoin ETF (ARKB) by acquiring another 96,200 shares and enhanced its position in Circle Internet Group (CRCL) with 108,450 shares valued at about $7.6 million. This showcases ongoing confidence in digital finance despite the recent downturns in the crypto market.
Reducing Holdings in AMD and PLTR
On the selling side, ARK cut its exposure to AMD by offloading 106,651 shares worth nearly $22 million, following a drop in stock price linked to Meta’s potential shifts to Google’s chips. ARK also sold 354,955 shares of Palantir valued at approximately $58 million as the stock began to recover from previous declines.
Additionally, the fund sold 216,331 shares of Exact Sciences (EXAS) and 397,713 shares of GitLab Inc. (GTLB).
For those interested, the TipRanks stock comparison tool could be useful for tracking the performance of these stocks.
