Key Highlights
- ARK Invest divested 7,450 shares of AMD valued at approximately $3.4 million across two ETFs on September 1
- The investment firm accumulated more than 700,000 Rocket Lab shares over two consecutive trading sessions, totaling roughly $44.5 million
- ARK acquired 456,059 Block shares valued at $38.1 million during a market dip
- The purchases were partially financed through selling approximately $26 million in Palantir shares, along with positions in Tempus AI and Shopify
- Analysts maintain Strong Buy recommendations on both AMD and Rocket Lab, projecting AMD to reach $647 and Rocket Lab to hit $110.60
On September 1, Cathie Wood’s ARK Invest executed several strategic portfolio adjustments, reducing exposure to certain technology stocks while significantly increasing positions in Rocket Lab and Block.
ARK Reduces Positions in AMD and Palantir
The investment firm offloaded a total of 7,450 Advanced Micro Devices shares through its ARKQ and ARKX exchange-traded funds. With AMD closing at $459.61, the transaction value reached approximately $3.4 million.
Despite the sale, ARK maintains a substantial AMD position valued at around $160 million across its various ETFs. This modest reduction represents strategic portfolio rebalancing rather than a complete exit from the semiconductor giant.
The chip manufacturer’s impressive performance has provided ARK with an opportunity to realize gains through standard portfolio optimization practices.
Additionally, ARK divested approximately $26 million worth of Palantir shares, alongside smaller positions in Tempus AI and Shopify, generating capital to support its recent acquisitions.
Significant Capital Deployment in Rocket Lab and Block
ARK purchased over 504,000 Rocket Lab shares on September 1 through its ARKK, ARKQ, and ARKX funds, representing approximately $31.6 million in capital. The previous trading day saw ARKK acquire an additional 200,303 shares valued at roughly $12.9 million. Combined, these transactions exceeded 700,000 shares over the two-day period.
Rocket Lab’s stock price has declined more than 58% since reaching its May peak. Wood’s buying activity suggests she views the current valuation as an attractive entry point.
Recent headwinds have pressured the aerospace company’s shares. NASA’s decision to award a Mars communications contract valued at up to $700 million to Jeff Bezos’ Blue Origin, bypassing Rocket Lab, disappointed investors. Additional concerns center around insider stock transactions and possible timeline extensions for the Neutron rocket development.
Despite market concerns, Rocket Lab reported second-quarter revenue that surged 62% to a company record of $234 million. Its backlog expanded 137% to reach $2.36 billion. Management maintains its fourth quarter 2026 timeline for delivering Neutron to the launch pad.
ARK’s Block acquisition totaled 456,059 shares worth $38.1 million as the fintech stock declined 1.9%. This purchase extends a pattern of accumulation that included approximately $21 million in early August and $15.4 million in mid-August.
Block’s second-quarter performance showed gross profit reaching $3.17 billion, representing 25% growth, while Cash App expanded 31%. The company achieved record adjusted operating income of $864 million.
Management elevated its 2026 gross profit guidance to $12.51 billion and now anticipates adjusted earnings per share of $4.02, marking a 70% year-over-year increase.
Analysts maintain a Strong Buy consensus rating on both AMD and Rocket Lab. The average price target for AMD stands at $647.19, indicating potential upside of 41%. Rocket Lab’s average target of $110.60 suggests possible gains of 77% over the next twelve months.
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