Cathie Wood's Ark Invest Buys Alibaba, Baidu, Sells AMD Holdings

Cathie Wood's Ark Invest has made strategic moves in the tech sector, adding Alibaba and Baidu to its portfolio and lowering holdings in AMD. The flagship fund, Ark Innovation ETF, initiated exposure to Alibaba, buying ~63K shares worth around $11 million. The fund also invested in Baidu.

Cathie Wood's Ark Innovation ETF (ARKK) has made significant strategic moves in the tech sector. The flagship fund recently initiated exposure to Chinese e-commerce giant Alibaba (NYSE:BABA) and China's search engine market leader Baidu (NASDAQ:BIDU), while reducing its holdings in semiconductor company Advanced Micro Devices (NASDAQ:AMD).

ARKK bought approximately 63,000 shares of Alibaba worth around $11 million, reflecting a growing confidence in select Chinese names despite ongoing geopolitical tensions. The fund also invested in Baidu by purchasing around 82,000 shares worth approximately $11 million. These moves align with the fund's increasing bullishness in Chinese technology firms.

Additionally, Ark Invest reduced its holdings in AMD by selling approximately 138,000 shares worth about $22.3 million. The total holdings in AMD were brought down to approximately 1.3 million shares worth more than $209 million. This reduction follows recent stock price movements and potential shifts in the semiconductor sector.

ARKK has also been consistently selling shares of Tempus AI (TEM), recording a smaller trade worth approximately $3.8 million. Despite this, the fund still holds approximately 4.35 million shares in Tempus AI worth $344 million.

These strategic adjustments by Ark Invest underscore the fund's focus on the growing potential of Chinese technology firms, particularly those investing heavily in artificial intelligence. Alibaba, for instance, has recently announced plans to increase AI spending beyond its already ambitious budget, which could further drive share price gains. Baidu's Apollo Go autonomous ride-hailing trials in Dubai also highlight the company's innovative capabilities.

In conclusion, Ark Invest's recent portfolio adjustments reflect a nuanced approach to the tech sector, balancing exposure to promising Chinese firms with strategic reductions in other areas. These moves are part of the fund's broader strategy to capitalize on emerging trends and geopolitical shifts.