Key Highlights
- On August 28, ARK Invest offloaded 156,286 shares of AMD valued at $74.5 million
- The investment firm acquired 243,707 Nvidia shares, approximately $53-55.6 million, following a post-earnings price decline
- ARK added 55,131 Broadcom shares valued at $20.5 million in anticipation of September 3 earnings
- Nvidia’s Q2 results showed revenue reaching $96.2 billion, representing 106% growth year-over-year, with Q3 projections at $108 billion
- Over the last 12 months, the Ark Innovation ETF has experienced net outflows totaling $2.09 billion
In a significant rebalancing move, Cathie Wood’s ARK Invest executed a substantial portfolio restructuring on August 28, divesting $74.5 million in Advanced Micro Devices holdings while simultaneously increasing positions in Nvidia and Broadcom.
The investment firm disposed of 156,286 shares of AMD distributed across several exchange-traded funds. This transaction came immediately after ARK had already trimmed its AMD position by approximately 37,977 shares valued at roughly $18.26 million the previous trading day. Despite these sales, AMD’s stock performance remains robust with a 117.4% gain year-to-date.
Advanced Micro Devices, Inc., AMD
Nvidia Position Expanded Following Post-Earnings Correction
ARK Invest accumulated 243,707 Nvidia shares, representing approximately $53 million based on the August 28 closing price of $217.55 per share. This strategic purchase occurred just one day after Nvidia experienced a nearly 9% surge on exceptional earnings results, followed by a 4.5% pullback.
The semiconductor giant delivered fiscal Q2 revenue of $96.2 billion, marking a remarkable 106% increase compared to the prior year. Adjusted earnings per share reached $2.22, surpassing analyst expectations of $2.10.
Management issued guidance projecting approximately $108 billion in Q3 revenue, exceeding Wall Street’s consensus estimate of $104.19 billion. The company’s CFO indicated expectations for roughly 70% revenue growth through fiscal 2028.
Following these impressive results, multiple Wall Street analysts upgraded their price targets. JPMorgan increased its projection to $320 from $280. Bank of America maintained its buy recommendation with a $350 target price, designating Nvidia as a premier investment opportunity. Melius Research established the highest Street target at $420.
Nvidia’s stock has appreciated approximately 16.6% since the beginning of the year.
Strategic Broadcom Accumulation Ahead of Quarterly Results
ARK Invest also secured 55,131 shares of Broadcom, totaling $20.5 million in value. This acquisition followed an earlier Broadcom purchase made earlier in the same week.
Broadcom is scheduled to unveil its fiscal Q3 financial results after the market closes on September 3. Analyst consensus forecasts revenue of $29.24 billion, representing an 83.3% year-over-year increase, alongside adjusted earnings per share of $3.21.
Benchmark analyst Cody Acree maintained a buy recommendation with a $545 price objective for Broadcom. He observed that the stock currently trades near the lower end of its AI sector peer group on a valuation basis and characterized it as an attractive opportunity after shares declined 13% following its Q2 earnings release.
Broadcom shares have gained 6.6% year-to-date.
Wood continues to express confidence in artificial intelligence’s capacity to enhance corporate profitability and operational efficiency. She has consistently emphasized that organizations embracing AI technologies will distinguish themselves from competitors who fail to adopt these innovations.
However, despite this forward-looking optimism, the Ark Innovation ETF has generated a five-year annualized return of -6.91% through August 28, significantly underperforming the S&P 500’s 11.33% return over the identical timeframe. The fund has witnessed net outflows approximating $2.09 billion throughout the past 12 months.
The flagship Ark Innovation ETF has posted a 9.97% gain year-to-date, lagging behind the S&P 500’s 12.65% advance during the corresponding period.
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