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Cathie Wood buys $13.9 million of popular AI stock
Cathie Wood buys $13.9 million of popular AI stock

Yahoo

time4 days ago

  • Business
  • Yahoo

Cathie Wood buys $13.9 million of popular AI stock

Cathie Wood buys $13.9 million of popular AI stock originally appeared on TheStreet. Cathie Wood, head of Ark Investment Management, often buys her favorite tech stocks when prices dip. This is what she did in late May, adding shares of a popular AI company after a pullback. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 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 this year. Year-to-date, ARKK is down 2.15%, while the S&P 500 index is up 0.51%. 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 30, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of negative 1.66%. In comparison, the S&P 500 has an annualized return of 15.94% 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 last month, she dismissed recession predictions 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. But not everyone shares Wood's bullish outlook. Her flagship Ark Innovation ETF has seen $2.02 billion in net outflows over the past year through May 29, including nearly $144 million in the last month alone, according to ETF research firm VettaFi. On May 28, Wood's Ark funds bought 251,080 shares of Tempus AI () . That chunk of stock was valued at roughly $13.9 million as of May 30's close. Wood has been actively buying Tempus AI's stock since last June's IPO. Former Speaker of the House Nancy Pelosi also bets on this stock. In January, Pelosi bought 50 call options (a bet that a stock will rise) for Tempus AI valued at least $50, AI is a health technology company founded in 2015. It uses AI for diagnostics and helps physicians make personalized, data-driven decisions. The stock plunged more than 19% on May 28 after short-seller Spruce Point Capital Management released a report raising concerns about management's alleged history of promoting disruptive technology companies with revenue recognition issues and shareholder losses. The report also questioned the validity of Tempus AI's artificial intelligence services, citing minimal revenues and product demonstrations. Tempus AI responded that the report is "riddled with hypotheticals and inaccuracies and fails to address Tempus' history of strong financial performance and impressive growth." Wood's team said it has investigated the credibility of these allegations. The team believes that Tempus AI "remains focused on delivering data-driven, AI-enabled, patient-centered diagnostics and improving outcomes through precision medicine," according to a weekly letter to investors. Despite that tumble, Tempus AI stock has surged 63% year-to-date. On May 6, the company reported first-quarter results, with revenue climbing 75.4% year-over-year to $255.7 million. Gross profit surged 99.8% to $155.2 million, driven by continued margin gains in its Genomics and Data and Services segments. It raised its full-year 2025 revenue forecast to $1.25 billion, reflecting roughly 80% growth from the previous year. However, the company is still not profitable, and net loss for the quarter widened to $68 million from $64.7 million. Wood says health care is the "most underappreciated application of AI." 'We've got 37 trillion cells in our body, and they're going to be sequenced as we're looking for cures,' Wood told CNBC in February. 'I think the most underappreciated application of AI is health care. I think health care is responsible for an incredible amount of storage out there right now. Data is the name of the game.' Fund manager buys and sells See a big stock rally ahead? Be patient, money manager says Fund manager, skeptical of AI, backs shocking stock Veteran fund manager sends surprising message on the weak dollar As of May 31, Tempus AI ranked sixth among Ark Innovation ETF's holdings, accounting for 5.1% of the portfolio with a market value of $284.8 million. Wood's latest trades this week also include buying shares of Nvidia () , Advanced Micro Devices () , Iridium Communications () , Intuitive Machines () , and Intellia Therapeutics () . At the same time, she trimmed positions in Tesla () , Roblox () , and CoreWeave () .Cathie Wood buys $13.9 million of popular AI stock first appeared on TheStreet on Jun 1, 2025 This story was originally reported by TheStreet on Jun 1, 2025, where it first appeared. Sign in to access your portfolio

Cathie Wood buys $46 million of surging top semiconductor stock
Cathie Wood buys $46 million of surging top semiconductor stock

Yahoo

time25-05-2025

  • 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

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