Cathie Wood Boosts ILMN and NVDA Stocks, Cuts RKLB Stake Again

Cathie Wood's ARK Invest ETFs made significant trades in biotech and AI stocks on July 22. Wood purchased $2.98 million worth of Illumina and boosted her position in Nvidia, a long-time favorite in the AI space. ARK trimmed shares of Guardant Health and Rocket Lab USA for a second straight week. Wood's bets reflect her strong belief in precision medicine, gene sequencing, and the potential of Nvidia in AI and advanced chip technology.

On July 22, Cathie Wood’s ARK Invest ETFs made significant trades in the biotech and artificial intelligence (AI) sectors. The ace hedge fund manager’s largest trade of the day was a $2.98 million purchase of Illumina (ILMN), a pioneer in DNA sequencing technologies [1]. Additionally, Wood boosted her position in Nvidia (NVDA), a long-time favorite in the AI space. On the sell side, ARK trimmed shares of Guardant Health (GH) and Rocket Lab USA (RKLB) for a second straight week [1].

Illumina and Precision Medicine

ARK’s Genomic Revolution ETF (ARKG) added 31,265 shares of Illumina, valued at nearly $2.98 million. The stock closed 7% higher on Tuesday, July 22. Puneet Souda of Leerink Partners recently maintained a Buy rating on the stock and increased the price target to $120 from $115, reflecting an upside potential of 18% from current levels [1]. This move underscores Wood’s belief in the long-term promise of precision medicine and gene sequencing.

Nvidia and AI

ARKX, ARK’s Space Exploration & Innovation ETF, scooped up 11,973 shares of Nvidia, worth about $2.05 million. This followed an earlier purchase on July 15, when ARKX acquired 2,999 shares valued at $492,045. Despite Nvidia shares closing 3% lower on Tuesday, Wood’s consistent buying shows her strong belief in the company’s role in AI and advanced chip technology [1]. The move comes amidst a backdrop of uncertainty for Nvidia, as the company’s stock experienced a decline following reports of delays in the Stargate AI venture, a joint effort with SoftBank and OpenAI [2].

Sell-Side Trades

On the sell side, ARKG sold 68,228 shares of Guardant Health, worth over $3.11 million, and ARKX sold 43,481 shares of Rocket Lab, worth $2.05 million. This continues a recent trend of reducing its stake in RKLB [1]. Turning to Wall Street, Guardant Health stock scores a Strong Buy consensus rating, with the average GH stock price target of $61.38 indicating a 32.7% upside from current levels. Meanwhile, Rocket Lab USA also earns a Strong Buy consensus rating, with the reflecting a 19.80% downside risk [1].

Conclusion

Cathie Wood’s strategic moves in Illumina and Nvidia stocks reflect her strong belief in precision medicine, gene sequencing, and the potential of Nvidia in AI and advanced chip technology. These trades highlight her long-term investment thesis and her willingness to capitalize on market disruptions. As Wood continues to navigate the complex landscape of biotech and AI, investors will closely monitor her moves for insights into the future of these sectors.

References:
[1] https://www.tipranks.com/news/cathie-wood-pours-millions-into-illumina-and-nvidia-stocks-cuts-rklb-stake-again
[2] https://www.benzinga.com/news/25/07/46563331/cathie-wood-buys-the-nvidia-dip-amid-panic-over-stargate-project-ark-swoops-up-2-million-worth-of-hot-ai-stock