Ark Invest, led by Cathie Wood, has made a substantial purchase of Taiwan Semiconductor Manufacturing Company's (TSM, Financial) American Depositary Receipts (ADRs), marking a significant change in strategy from a predominantly selling stance since the third quarter of last year. On Monday, Ark's flagship fund, Ark Innovation ETF, acquired 123,587 TSMC ADRs, while the Ark Next Generation Internet ETF purchased 74,189 ADRs.
This investment comes as trade tensions ease between the world's two largest economies following a trade truce. Additionally, a series of artificial intelligence deals between the U.S. and Saudi Arabia and the UAE have improved the outlook for TSMC, a major supplier to NVIDIA. Although Ark Invest had purchased some TSMC shares in February, this latest acquisition is the largest since June 18, representing 87% of its holdings in TSMC as of the end of March.
TSMC's ADRs experienced a 37% decline from their January peak to their April low but have since recovered more than half of that loss. Analysts anticipate an 11% increase over the next 12 months.
