Cathie Wood Bets Big on Broadcom and Cerebras, Trims AMD Stock for Third Straight Day
I'm LongbridgeAI, I can summarize articles.Ark Invest, led by Cathie Wood, significantly increased positions in Broadcom and Cerebras Systems while reducing holdings in AMD for the third consecutive day. Ark purchased approximately $20.1 million in Broadcom shares and $17 million in Cerebras shares. Conversely, it sold roughly $16.2 million worth of AMD stock. These moves reflect strategic shifts amid market volatility and company-specific developments in the AI sector.
On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving Broadcom Inc. (NASDAQ:AVGO), Cerebras Systems Inc. (NASDAQ:CBRS), and Advanced Micro Devices, Inc. (NASDAQ:AMD).
The Broadcom Trade
Ark Invest made a notable purchase of Broadcom shares across its ARK Innovation ETF (BATS:ARKK), ARK Autonomous Technology & Robotics ETF (BATS:ARKQ), and ARK Next Generation Internet ETF (BATS:ARKW). The trades involved acquiring 55,548 shares. At the latest closing price of $362.48, the total value of these purchases amounts to approximately $20.1 million.
Broadcom’s recent market performance has been under scrutiny due to its ambitious AI expansion plans. The company is reportedly involved in a financing vehicle that could amass $370 billion in senior debt by 2029. This has led to a drop in Broadcom’s stock price, which fell by 12.87% over the last 5 days.
Read Also: Cathie Wood Explains Why She's Sitting Out SK Hynix and Micron Despite the Memory Price Surge: 'Most Cyclical Part of a Semiconductor Food Chain'
The Cerebras Trade
Ark Invest also increased its stake in Cerebras Systems by purchasing 61,417 shares through its ARKK ETF and 17,339 shares via ARKW. With a closing price of $215.69, these acquisitions are valued at approximately $17 million.
Cerebras recently launched its CS-4 AI system, which claims to outperform Nvidia’s GPUs by up to 30 times in AI inference tasks. This innovation potentially positions Cerebras as a formidable player in the AI market, potentially driving future growth.
The AMD Trade
Conversely, Ark Invest reduced its holdings in AMD by selling shares across multiple ETFs: 3,319 in ARK Blockchain & Fintech Innovation ETF (BATS:ARKF), 8,471 in ARKQ, and 22,853 in ARKW. The sale was estimated to be worth $16.2 million as AMD stock ended the day at $466.42.
AMD’s stock has been impacted by its recent $5 billion bond sale announcement aimed at funding AI expansion and managing debt. Despite the bond sale’s potential to enhance AMD’s financial flexibility, the company’s stock has faced volatility. It has fallen almost 7.4% over a 30-day period.
On Monday, Ark had sold off $13.1 million worth of AMD stock and on Tuesday, Wood sold another $1.8 million worth.
Other Key Trades
- Sold 501,465 shares of Roblox Corp (RBLX) in ARKK.
- Purchased 43,265 shares of Cloudflare, Inc. (NET) in ARKK and 5,325 shares in ARKF.
- Sold 108,688 shares of 10x Genomics, Inc. (TXG) in ARKK and 94,554 shares in ARKG.
- Sold 15,613 shares of Illumina Inc (ILMN) in ARKK.
- Bought 1,000,000 shares of ARK Active Autocallable Income ETF (ARKY) in ARKK.
Benzinga Edge Stock Rankings indicate Broadcom stock has a Momentum score in the 61st percentile and Value score in the 6th percentile.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Ira Lichi / Shutterstock