Cathie Wood, famously known for her substantial holdings in Tesla Motors (TSLA.US), has recently initiated new changes in the operations of her flagship funds. According to trading records disclosed on Wednesday, her firm, Ark Investment Management, has been consistently reducing its position in Tesla while significantly increasing its stake in the recently added semiconductor giant Broadcom (AVGO.US).
Trading documents reveal that the ARK Next Generation Internet ETF (ARKW.US), after establishing an initial position last week, purchased an additional 31,308 shares of Broadcom this week, bringing its total holdings to 62,545 shares. Concurrently, the ARK Innovation ETF (ARKK.US) also initiated a new position in the chipmaker, acquiring 111,781 shares.
This accumulation occurred amidst a pullback in Broadcom's share price. On Wednesday, against a backdrop of broad selling in tech stocks, Broadcom's stock fell as much as 4.2%, though it subsequently rebounded, trading at $343.02 on Thursday with a gain of over 0.9%. Ark's decision to buy on weakness is interpreted by the market as a vote of confidence in the long-term prospects of semiconductors and AI.
In stark contrast, the ARK Innovation ETF sold 86,139 shares of Tesla during the same period. Despite this reduction, it does not signify a complete exit from Tesla, as the stock remains one of the largest holdings by weight across several Ark funds.
Data shows that, as of Thursday, the ARK Innovation ETF still holds approximately 1.7285 million shares of Tesla, accounting for nearly 10% of the fund's assets. Since the beginning of 2026, Tesla's stock price has experienced significant volatility. On Wednesday, following CEO Elon Musk's announcement that Tesla would shift its Full Self-Driving software to a monthly subscription-only model, the stock declined 1.8% for the day.
Ark also made other adjustments within the chip sector. The ARK Next Generation Internet ETF sold 19,310 American Depositary Receipts of Taiwan Semiconductor Manufacturing Company (TSM.US) ahead of its earnings report. Post-trade, the fund still holds roughly 164,437 shares, valued at approximately $53.8 million, ranking as its 13th largest holding.
Taiwan Semiconductor subsequently reported fourth-quarter earnings that significantly surpassed market expectations and provided strong capital expenditure guidance for 2026, reigniting market confidence in the long-term AI boom cycle. This led to broad strength in related sectors, with TSMC's stock rising about 5.4% on Thursday.
In the fintech space, the ARK Fintech Innovation ETF purchased 56,993 shares of Klarna Group (KLAR.US). This "buy now, pay later" service provider went public late last year. The ETF achieved a return of approximately 29% in 2025, notably outperforming the Nasdaq Composite Index, which gained about 20% over the same period.
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