NEW YORK, NY – Renowned investor Cathie Wood made headlines recently by selling shares of Taiwan Semiconductor Manufacturing Corp. for the first time in over two years. This move is seen as part of a larger strategy to reduce exposure in the chipmaker’s main client, Nvidia Corp.
Ark Autonomous Technology and Robotics ETF, managed by Ark Investment Management LLC, sold a substantial number of American depositary receipts of Taiwan’s largest company, TSMC. This marked the first sale of the stock since the conclusion of 2021, indicating a shift in investment focus. Additionally, the same ETF also offloaded shares of Nvidia on the same day.
Wood’s decision to trim holdings in these leading global chip companies comes amidst a surging artificial intelligence sector, propelled by Nvidia’s impressive earnings results that have uplifted global markets. Nvidia has seen a remarkable 59% increase year-to-date, while TSMC’s ADRs have also surged by 25%.
Throughout 2023, Ark funds had made several purchases of TSMC shares, but with this recent move, they now collectively hold around 221,848 shares in the company. As expected, Nvidia’s stock rose by 1.3% in US premarket trading following the news, while TSMC’s ADRs saw a more modest 0.6% increase.
Despite Wood’s reputation as a key figure in predicting the transformative power of AI, she has been gradually selling off Nvidia shares, opting instead to invest in lesser-known software companies like UiPath Inc. and Twilio Inc. This strategic shift in investment focus reflects her belief in the growth potential of these entities.
The autonomous ETF, specializing in companies at the forefront of industrial innovation, has somewhat missed out on Nvidia’s remarkable surge, which has resulted in the company being valued at nearly $2 trillion, outpacing giants like Amazon.com Inc. and Alphabet Inc. Notably, both TSMC and Nvidia no longer rank among the fund’s top 10 holdings as a result of these changes in Wood’s investment strategy.