Latest news with #ARKK
Yahoo
6 days ago
- Business
- Yahoo
Cathie Wood buys $46 million of surging top semiconductor stock
Cathie Wood, head of Ark Investment Management, is known for making bold bets on disruptive innovation, mostly in the U.S. But this week, she looked abroad, buying an Asian chipmaker as investor optimism around AI infrastructure and semiconductors returns following signs of easing tariffs. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 In April, President Donald Trump raised tariffs on Chinese goods to as high as 145%, prompting swift retaliation from Beijing and triggering a sharp market sell-off as tensions flared between the world's two largest economies. Earlier this month, the U.S. and China struck a rare deal in Geneva to temporarily cut tariffs as both sides work toward a broader agreement. Wood's funds saw a brief bump after Trump won the presidency last November, but that momentum didn't go far. Her flagship Ark Innovation ETF () underperformed the S&P 500 index amid broader market volatility. Year-to-date, ARKK is down 2.67%, slightly worse than the S&P 500's loss of 1.34%. Wood gained a remarkable 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style. As of May 23, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of negative 1.75%. In comparison, the S&P 500 has an annualized return of 16.20% over the same period. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood recently said the U.S. is coming out of a three-year 'rolling recession' and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published on April 30, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months." "If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year," she wrote. She also struck an optimistic tone for tech stocks. "During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. But not all investors share Wood's optimism. The Ark Innovation ETF has seen a net outflow of $2.45 billion over the past 12 months through May 21, with $446.69 million exiting in the past month, according to ETF research firm VettaFi. On May 19 and 20, Wood's Ark funds bought 241,047 shares of Taiwan Semiconductor Manufacturing Company, or TSMC () . That chunk of stock is valued at roughly $46.3 million and is one of Wood's biggest recent Semiconductor is the world's leading contract chipmaker and a key supplier to Nvidia () and Advanced Micro Devices () . It manufactures advanced chips used in artificial intelligence applications, including those that power large language models developed by companies such as Microsoft () and Google () . TSMC shares are down 4.2% so far in 2025, but the stock has rebounded sharply in the past month, climbing nearly 27% as investors reassess the impact of U.S.-China tariffs on the chipmaker's outlook. In April, the company reported strong first-quarter results, with earnings per share increased 60.4% to $2.12 per ADR. Revenue reached $25.53 billion, a 41.6% increase year-over-year. For the current quarter, TSMC expects revenue of $28.4 billion to $29.2 billion. The midpoint of $28.8 billion topped Wall Street's target of $26.92 billion. "Moving into second quarter 2025, we expect our business to be supported by strong demand for our industry-leading 3-nanometer and 5-nanometer technologies," TSMC Chief Financial Officer Wendell Huang said. The bullish bet isn't without risk. TSMC is exposed to geopolitical tensions and trade uncertainties between the U.S. and China, which could hurt the company's delivery and revenue. 'While we have not seen any changes in our customers' behavior so far, uncertainties and risks from the potential impact from tariff policies exist,' Huang said in a TSMC news release. Nvidia's CEO, Jensen Huang, said last September that Nvidia had the ability to turn to other suppliers as it had enough intellectual property. But he flagged that the switch might lower chip quality. More Nvidia: Will Nvidia get hit hard by AI capex risk? Analysts revise Nvidia price target on chip demand Surprising China news sends Nvidia stock tumbling 'Maybe the process technology is not as great, maybe we won't be able to get the same level of performance or cost, but we will be able to provide the supply," Huang said at Goldman Sachs's Communacopia + Technology Conference. "In the event anything were to happen, we should be able to pick up and fab it somewhere else.' Still, he praised TSMC's unmatched capabilities. 'TSMC is the world's best by an incredible margin…the great chemistry, their agility, the fact that they could scale,' he added. In the first quarter, Wood purchased 8,996 TSMC shares. The stock is not in her top 10 holdings. Billionaire investor Stanley Druckenmiller also made a bold bet in TSMC, adding 491,265 shares in the first quarter, which represents an increase of 456.9% in his Wood buys $46 million of surging top semiconductor stock first appeared on TheStreet on May 25, 2025
Miami Herald
6 days ago
- Business
- Miami Herald
Cathie Wood buys $46 million of surging top semiconductor stock
Cathie Wood, head of Ark Investment Management, is known for making bold bets on disruptive innovation, mostly in the U.S. But this week, she looked abroad, buying an Asian chipmaker as investor optimism around AI infrastructure and semiconductors returns following signs of easing tariffs. Don't miss the move: Subscribe to TheStreet's free daily newsletter In April, President Donald Trump raised tariffs on Chinese goods to as high as 145%, prompting swift retaliation from Beijing and triggering a sharp market sell-off as tensions flared between the world's two largest economies. Earlier this month, the U.S. and China struck a rare deal in Geneva to temporarily cut tariffs as both sides work toward a broader agreement. Wood's funds saw a brief bump after Trump won the presidency last November, but that momentum didn't go far. Her flagship Ark Innovation ETF (ARKK) underperformed the S&P 500 index amid broader market volatility. Year-to-date, ARKK is down 2.67%, slightly worse than the S&P 500's loss of 1.34%. Wood gained a remarkable 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style. As of May 23, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of negative 1.75%. In comparison, the S&P 500 has an annualized return of 16.20% over the same period. Image source:Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values. Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood recently said the U.S. is coming out of a three-year "rolling recession" and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published on April 30, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months." "If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year," she wrote. She also struck an optimistic tone for tech stocks. "During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. But not all investors share Wood's optimism. The Ark Innovation ETF has seen a net outflow of $2.45 billion over the past 12 months through May 21, with $446.69 million exiting in the past month, according to ETF research firm VettaFi. On May 19 and 20, Wood's Ark funds bought 241,047 shares of Taiwan Semiconductor Manufacturing Company, or TSMC (TSM) . That chunk of stock is valued at roughly $46.3 million and is one of Wood's biggest recent trades. Related: Cathie Wood buys $2.7M surging China tech stock after tariff talks Taiwan Semiconductor is the world's leading contract chipmaker and a key supplier to Nvidia (NVDA) and Advanced Micro Devices (AMD) . It manufactures advanced chips used in artificial intelligence applications, including those that power large language models developed by companies such as Microsoft (MSFT) and Google (GOOGL) . TSMC shares are down 4.2% so far in 2025, but the stock has rebounded sharply in the past month, climbing nearly 27% as investors reassess the impact of U.S.-China tariffs on the chipmaker's outlook. In April, the company reported strong first-quarter results, with earnings per share increased 60.4% to $2.12 per ADR. Revenue reached $25.53 billion, a 41.6% increase year-over-year. For the current quarter, TSMC expects revenue of $28.4 billion to $29.2 billion. The midpoint of $28.8 billion topped Wall Street's target of $26.92 billion. "Moving into second quarter 2025, we expect our business to be supported by strong demand for our industry-leading 3-nanometer and 5-nanometer technologies," TSMC Chief Financial Officer Wendell Huang said. The bullish bet isn't without risk. TSMC is exposed to geopolitical tensions and trade uncertainties between the U.S. and China, which could hurt the company's delivery and revenue. "While we have not seen any changes in our customers' behavior so far, uncertainties and risks from the potential impact from tariff policies exist," Huang said in a TSMC news release. Nvidia's CEO, Jensen Huang, said last September that Nvidia had the ability to turn to other suppliers as it had enough intellectual property. But he flagged that the switch might lower chip quality. More Nvidia: Will Nvidia get hit hard by AI capex risk?Analysts revise Nvidia price target on chip demandSurprising China news sends Nvidia stock tumbling "Maybe the process technology is not as great, maybe we won't be able to get the same level of performance or cost, but we will be able to provide the supply," Huang said at Goldman Sachs's Communacopia + Technology Conference. "In the event anything were to happen, we should be able to pick up and fab it somewhere else." Still, he praised TSMC's unmatched capabilities. "TSMC is the world's best by an incredible margin…the great chemistry, their agility, the fact that they could scale," he added. In the first quarter, Wood purchased 8,996 TSMC shares. The stock is not in her top 10 holdings. Billionaire investor Stanley Druckenmiller also made a bold bet in TSMC, adding 491,265 shares in the first quarter, which represents an increase of 456.9% in his stake. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
19-05-2025
- Business
- Yahoo
Cathie Wood Bets Big on This Chinese Tech Stock as Trade Tensions Ease
May 19 - Cathie Wood's Ark Autonomous Technology & Robotics ETF has quietly snapped up 30,217 shares of Baidu (NASDAQ:BIDU), valued at about $2.7 million, according to a recent report. The move comes as U.S.-China trade tensions ease: Washington has slashed tariffs on Chinese goods from 145 percent to 30 percent, while Beijing cut its duties on U.S. imports from 125 percent to 10 percent. Warning! GuruFocus has detected 3 Warning Signs with BIDU. Ark's flagship Innovation ETF (ARKK) has lagged this year, up just 1 percent versus a 1 percent gain for the S&P 500. Over the past 12 months, that fund saw net outflows of $2.0 billion, reflecting lingering skepticism about its aggressive bets. Baidu shares are roughly flat in recent sessions but have climbed 6 percent year-to-date. Wood's team cites Baidu's push into artificial intelligence and autonomous driving, areas where the company has rolled out its Ernie X1 and Ernie 4.5 AI models, as key catalysts. Wood, known for backing disruptive themes like robotics and genomics, sees China's market reopening and technology innovation as fertile ground. While some investors question her timing, this latest purchase underscores her conviction that Baidu can leverage easing trade barriers to accelerate its AI and mobility ambitions. Based on the one year price targets offered by 31 analysts, the average target price for Baidu Inc is $113.43 with a high estimate of $207.96 and a low estimate of $75.98. The average target implies a upside of +26.97% from the current price of $89.34. Based on GuruFocus estimates, the estimated GF Value for Baidu Inc in one year is $119.92, suggesting a upside of +34.23% from the current price of $89.34. For deeper insights, visit the Baidu Forecast page. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Cathie Wood Bets Big on This Chinese Tech Stock as Trade Tensions Ease
May 19 - Cathie Wood's Ark Autonomous Technology & Robotics ETF has quietly snapped up 30,217 shares of Baidu (NASDAQ:BIDU), valued at about $2.7 million, according to a recent report. The move comes as U.S.-China trade tensions ease: Washington has slashed tariffs on Chinese goods from 145 percent to 30 percent, while Beijing cut its duties on U.S. imports from 125 percent to 10 percent. Warning! GuruFocus has detected 3 Warning Signs with BIDU. Ark's flagship Innovation ETF (ARKK) has lagged this year, up just 1 percent versus a 1 percent gain for the S&P 500. Over the past 12 months, that fund saw net outflows of $2.0 billion, reflecting lingering skepticism about its aggressive bets. Baidu shares are roughly flat in recent sessions but have climbed 6 percent year-to-date. Wood's team cites Baidu's push into artificial intelligence and autonomous driving, areas where the company has rolled out its Ernie X1 and Ernie 4.5 AI models, as key catalysts. Wood, known for backing disruptive themes like robotics and genomics, sees China's market reopening and technology innovation as fertile ground. While some investors question her timing, this latest purchase underscores her conviction that Baidu can leverage easing trade barriers to accelerate its AI and mobility ambitions. Based on the one year price targets offered by 31 analysts, the average target price for Baidu Inc is $113.43 with a high estimate of $207.96 and a low estimate of $75.98. The average target implies a upside of +26.97% from the current price of $89.34. Based on GuruFocus estimates, the estimated GF Value for Baidu Inc in one year is $119.92, suggesting a upside of +34.23% from the current price of $89.34. For deeper insights, visit the Baidu Forecast page. This article first appeared on GuruFocus.
Miami Herald
17-05-2025
- Business
- Miami Herald
Cathie Wood buys $2.7M surging China tech stock after tariff talks
Cathie Wood, founder and chief of Ark Investment Management, is best known for backing cutting-edge tech like AI and robotics, with most of her investments focused on U.S. companies. But this week, she made a move in China, picking up $2.7 million worth of a Chinese tech stock as trade tensions between Washington and Beijing showed signs of easing. Don't miss the move: Subscribe to TheStreet's free daily newsletter In early April, President Donald Trump raised tariffs on Chinese goods to as high as 145%, setting off tensions between the world's two biggest economies and triggering a sharp market sell-off. Last week, the two sides reached a deal in Geneva: the U.S. will cut those tariffs to 30% for the next three months, while China agreed to lower its own duties on U.S. imports to 10% from 125%. Wood's funds saw a brief bump after Trump won the presidency last November, but that momentum didn't go far. Her flagship Ark Innovation ETF (ARKK) underperformed both the S&P 500 and Nasdaq Composite through March and April amid broader market volatility. However, as of May 16, ARKK has started to recover, showing a 1.32% gain for the year, slightly ahead of the S&P 500's 1.30% gain and outperforming the Nasdaq's 0.52% loss. Wood gained a remarkable 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style. As of May 16, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of just 0.59%. In comparison, the S&P 500 has an annualized return of 17.57% over the same period. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values. Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood says the U.S. is coming out of a three-year "rolling recession" and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published on April 30, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months." "If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year," she wrote. She also struck an optimistic tone for tech stocks. "During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. Not all investors share Wood's optimism. The Ark Innovation ETF has seen a net outflow of $2.01 billion over the past 12 months through May 14, with $208.41 million exiting in the past month, according to ETF research firm VettaFi. On May 12, Wood's Ark Autonomous Technology & Robotics ETF (ARKQ) bought 30,217 shares of Baidu Inc (BIDU) . That chunk of stock is valued at roughly $2.7 million. Primarily known as China's top search engine, Baidu has shifted its focus to artificial intelligence and autonomous mobility. The company recently launched its new AI model, Ernie X1 and Ernie 4.5, positioning itself as a rival to OpenAI and DeepSeek. This isn't Wood's first move on Baidu or on Chinese tech in general. In the early 2020s, she was bullish on major Chinese tech names, building sizable positions in Baidu, Tencent, and Related: Veteran fund manager unveils bold Nvidia stock price target after rally By early 2021, The Ark funds held nearly 5 million shares of Baidu, worth around $1 billion, reflecting her optimism on China's market momentum and Baidu's push into electric vehicles, a play that echoed her long-standing position in Tesla (TSLA) . However, Wood's China investment hit hard in 2021 as Beijing's regulatory crackdown on tech firms intensified, and she gradually reduced her stakes. By the third quarter of 2022, Ark had fully exited Baidu. Wood returned to the name on March 24 this year, buying 129,451 shares - her first Baidu purchase in over two years. She added another 136,773 shares in April, followed by this latest May buy. Baidu shares are up roughly 6% in the past month. In a March interview with Bloomberg, Wood talked about how Robin Li, Baidu's CEO, is working to grow the company's self-driving business. More Tech Stocks: Amazon makes move that the White House hates, then walks it backAnalyst reboots Apple stock price target ahead of earningsControversial EV tax credits will be bad news for Tesla "We had a conversation very recently with Robin Li and his team and we understand how competitive the market is in China for both autonomous mobility and large language models. But we are looking at how Robin Li is pushing the envelope. Wuhan is the toughest in China. He can take learnings from that robotaxi experience into other markets," Wood said. "We believe that autonomous mobility in the next 5 to 10 years is going to scale globally to an $8 to $10 trillion market. If Baidu were to get any of that market even outside of China in the rest of Asia, we think that's not at all discounted in the stock," she added. Baidu stock is up 6.29% year-to-date. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
