Cathie Wood's ARK Innovation ETF (ARKK) recently made significant portfolio adjustments, selling approximately $9.9 million worth of Tesla (TSLA, Financial) shares while buying Nvidia (NVDA) and AMD (AMD). This strategic shift comes amid major market developments and has caught the attention of investors and analysts.
The fund reduced its Tesla holdings by 27,377 shares. On the same day, Tesla's CEO Elon Musk emphasized his renewed commitment to the company by stating his around-the-clock work schedule, leading to a 6.94% rise in Tesla’s stock, closing at $362.89.
Meanwhile, ARKK acquired 21,504 shares of Nvidia and added another 13,039 shares through the ARK Next Generation Internet ETF (ARKW), totaling approximately $4.7 million. Nvidia is set to release its quarterly earnings, with projections of $0.88 per share and $43.54 billion in revenue. The company's stock has increased by 20.75% over the past month, driven by strong technical indicators and anticipation of its earnings report. ARK's investment highlights its confidence in Nvidia’s leadership in AI technology despite geopolitical challenges.
Additionally, ARKK bought 50,837 shares of AMD, with ARKW adding 46,231 shares, reflecting AMD's growing influence in the AI sector.
