New York – Cathie Wood made a significant move by selling shares of Taiwan Semiconductor Manufacturing Corp. for the first time in over two years, indicating a strategic shift in her investment approach. Wood’s Ark Autonomous Technology and Robotics ETF sold a substantial number of American depositary receipts of Taiwan’s leading company, signaling a decrease in exposure to chipmaker Nvidia Corp., one of TSMC’s key customers.
The sale of TSMC shares came as a surprise, considering Wood’s past bullishness on the company and the overall chip sector. Despite the ongoing growth and hype surrounding artificial intelligence, Wood seems to be reevaluating her investment strategy, especially when it comes to high-flying tech stocks like Nvidia. The decision to sell shares of two tech giants reflects Wood’s ongoing effort to diversify her portfolio and explore new growth opportunities in the market.
Ark funds had previously shown confidence in TSMC, making multiple purchases throughout 2023. However, the recent sale indicates a shift in focus towards other sectors or companies that Wood considers to have greater growth potential. The move to reduce exposure in Nvidia and TSMC might be a strategic reallocation of resources to capitalize on emerging trends in the tech industry, such as software companies like UiPath Inc. and Twilio Inc.
Despite missing out on the recent surge in Nvidia’s valuation, Wood’s ETF remains committed to investing in companies at the forefront of industrial innovation. The decision to trim holdings in Nvidia and TSMC could also be influenced by a desire to allocate resources to other promising opportunities that might not have received as much attention in the market. As global markets continue to evolve, investors like Wood are constantly adjusting their strategies to stay ahead of the curve and maximize returns for their clients.