Cathie Wood's ARK ETFs Gain 34% Year-to-Date Led by ARKW and ARKF

Cathie Wood, the founder and CEO of ARK Invest, has been actively managing her ETFs, with ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) leading the pack with year-to-date performances of 34% and 32%, respectively. However, ARK Genomic Revolution ETF (ARKG) has been the only negative performer, down 2.2% in the same period. Tesla (TSLA) remains the largest holding across ARK ETFs, with an 8.3% weight, followed by Coinbase (COIN) at 7.85%. Circle Internet Group (CRCL) has been the most sold stock by ARK Invest in June, with shares up 164% year-to-date, providing an opportunity to lock in profits.

Among the individual stocks that gained Cathie Wood’s attention on the buy side, BWX Technologies, Inc. (NYSE) stands out. In mid-June, ARK Innovation ETF (ARKK) acquired $30.7 million worth of BWXT shares, making it one of the top buys for the month. BWX Technologies is a key player in the nuclear industry, with expertise in nuclear reactors and components crucial for the U.S. military's nuclear-powered aircraft carriers and submarines. The company is also at the forefront of developing micro-nuclear reactors under Project Pele and leading the trend towards modular nuclear reactors. With the U.S. government's support for nuclear energy, BWX's role in the nuclear ecosystem is expected to grow. Additionally, BWX is likely to participate in the EU's efforts to renew its nuclear capacities with small modular reactors (SMRs), which have been designated as “green.” Year-to-date, BWXT stock is up 28%, priced at $141.87 per share. ARKK increased its BWXT exposure from 215.83k to 408.36k shares from mid-June to this Monday. According to the analyst's forecast, the average BWXT price target is $137.72, with a range from $105 to $177.60 per share.

Another stock that caught Wood’s attention is Archer Aviation Inc. (NYSE: ACHR). ARKK gained ACHR exposure to $28.4 million in June, increasing its holdings from 339.76k shares in August 2023 to 17.52M shares as of this Monday. Archer Aviation is not only a leading eVTOL stock but also a key player in the AI-powered military sector, with partnerships with Palantir Technologies and Anduril Industries. This double exposure to commercialized eVTOL and weaponized next-gen hybrid vertical takeoff and landing (VTOL) makes Archer Aviation a strategic investment. Year-to-date, ACHR stock is up nearly 8%, with significant price swings. Currently priced at $10.32, the average ACHR price target is $12.28, with a range from $4.50 to $18 per share.

Advanced Micro Devices Inc. (NASDAQ: AMD) is another stock that Wood has been buying. Last week, she added $31.4 million worth of AMD shares across three ARK ETFs, increasing AMD exposure from 67.18k in July 2024 to 1.19M as of this Tuesday. AMD has been a strong performer, with its Ryzen lineup of CPUs capturing nearly 80% of the CPU market in the U.S. as of March. The company has also made significant moves to take market share from Nvidia in the AI sector, including acquiring Silo AI and partnering with Google Cloud. On the desktop GPU front, AMD is poised to benefit from Nvidia’s fumbled RTX 50 series launch. Year-to-date, AMD stock is up 18.9%, priced at $143.52. The average AMD price target is $132.54, with a range from $95 to $200 per share. Currently, zero analysts recommend selling AMD stock, while 15 are holding and 32 recommend buying.

In summary, Cathie Wood’s recent buys reflect her focus on innovative technologies and strategic investments. BWX Technologies, Archer Aviation, and Advanced Micro Devices are all companies with significant growth potential in their respective sectors. While these stocks have shown strong performance year-to-date, investors should conduct their own research and consider their risk tolerance before making investment decisions.