Key Highlights
- ARK Invest acquired 57,705 shares of Broadcom valued at $20.5 million in anticipation of its fiscal Q3 earnings announcement
- The investment firm divested 37,977 AMD shares across four ETFs, generating approximately $18.2 million in proceeds
- Additional purchases included stakes in Cerebras Systems and Cloudflare totaling $26 million combined
- Broadcom’s Q3 earnings scheduled for September 3 are projected to show 83.3% year-over-year revenue growth
- Analyst consensus rates Broadcom as a Strong Buy with projected upside of 43.4% from current price levels
On Wednesday, August 26, Cathie Wood’s ARK Invest executed a significant portfolio rebalancing, allocating $20.5 million toward Broadcom shares while simultaneously liquidating $18.2 million in Advanced Micro Devices holdings.
The investment firm accumulated 57,705 shares of Broadcom distributed across several exchange-traded funds. This strategic acquisition arrives just ahead of Broadcom’s scheduled fiscal third-quarter earnings release on September 3.
Financial analysts on Wall Street are projecting Broadcom’s Q3 revenue to reach $29.24 billion, representing an 83.3% increase compared to the equivalent quarter last year. The company’s adjusted earnings per share are anticipated to come in at $3.21, a substantial jump from $1.69 recorded in the prior-year period.
Market participants are particularly focused on Broadcom’s AI semiconductor revenue stream. The company has projected this segment will generate $16 billion during the quarter, more than doubling the previous year’s performance.
RBC Capital’s analyst Srini Pajjuri anticipates a modest earnings beat accompanied by raised guidance. He highlighted robust expansion in Broadcom’s networking division as a primary catalyst.
While Pajjuri acknowledged emerging competition in the TPU marketplace from MediaTek and a supply agreement between Google and Marvell, he maintains confidence that Broadcom’s established long-term contracts and expanding TPU market penetration will sustain the company’s momentum in coming years.
According to TipRanks data, Broadcom maintains a Strong Buy consensus rating supported by 24 Buy recommendations and three Hold ratings. The consensus price target of $509.96 implies potential upside of 43.4% from present trading levels. The stock has appreciated 3.1% year-to-date.
ARK Continues AMD Position Reduction
Concurrent with the Broadcom purchases, ARK systematically reduced its exposure to Advanced Micro Devices. The firm liquidated 37,977 AMD shares distributed across four ETFs, generating proceeds of approximately $18.2 million.
This transaction represents the second AMD divestment by ARK within the same week, indicating a calculated strategy to decrease their stake in the chipmaker.
The portfolio adjustment signals ARK’s sector rotation within semiconductors, demonstrating a preference for Broadcom’s artificial intelligence market positioning over AMD’s current offerings.
Additional Wednesday Trading Activity
ARK’s trading activity extended beyond the chip sector. The firm acquired 69,585 shares of Cerebras Systems valued at approximately $12.8 million and added 47,794 Cloudflare shares worth around $13.3 million.
Among dispositions, ARK sold 181,919 Tempus AI shares generating $12.5 million in proceeds and divested 53,280 Twist Bioscience shares for $8.1 million.
The firm also reduced its holdings in CrowdStrike, selling 14,339 shares for $2.7 million, and exited 25,009 Robinhood Markets shares for $2.8 million.
Additional minor sales comprised 14,965 Roblox shares fetching $585,430 and 25,000 Brera Holdings shares sold for $105,500.
These portfolio adjustments coincided with Nvidia’s Q2 FY27 earnings announcement, which showed adjusted earnings per share of $2.22 surpassing the $2.09 estimate, alongside revenue climbing 106% year-over-year to $96.2 billion.
ARK’s Wednesday transactions underscore the firm’s continued emphasis on artificial intelligence-focused investments, with Broadcom, Cerebras, and Cloudflare all receiving increased allocations.
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