Cathie Wood, known for her significant holdings in Tesla (TSLA), has recently shifted the operations of her funds. According to disclosed trading records, her flagship Ark Investment Management LLC has continued to reduce its holdings in Tesla while significantly increasing its position in newly added semiconductor giant Broadcom (AVGO). Additionally, the funds have also made adjustments in the chip sector and the fintech space.
Trading documents show that the ARK Next Generation Internet ETF (ARKW) increased its holdings in Broadcom by 31,308 shares this week after its initial purchase last week, bringing its total holdings to 62,545 shares. Meanwhile, the ARK Innovation ETF (ARKK) newly acquired 111,781 shares of Broadcom, formally establishing a position. This increase in holdings occurred as Broadcom’s stock price corrected. On Wednesday, amid a broad decline in technology stocks, Broadcom’s shares fell as much as 4.2% but later rebounded. ARK’s decision to increase its position at a low point is seen as a signal of confidence in the long-term prospects of semiconductors and artificial intelligence.
In contrast, the ARK Innovation ETF sold 86,139 shares of Tesla during the same period. However, this does not constitute a complete “sell-off,” as Tesla remains one of the largest holdings across multiple ARK funds. Recent data shows that the ARK Innovation ETF still holds approximately 1.7285 million shares of Tesla, accounting for nearly 10% of the fund’s assets. Entering 2026, Tesla’s stock price has shown significant volatility. Recently, the company announced that its Full Self-Driving software would be switched to a monthly subscription-only model, causing its stock price to drop by 1.8% on the day of the announcement.
Beyond Broadcom, ARK has also made moves in the chip sector. The ARK Next Generation Internet ETF sold 19,310 American Depositary Receipts (ADRs) of Taiwan Semiconductor Manufacturing Company (TSM) ahead of its earnings report, retaining approximately 164,437 shares after the transaction. Subsequently, TSMC reported fourth-quarter results that significantly exceeded expectations and provided strong capital expenditure guidance for 2026, reigniting market confidence in the artificial intelligence boom cycle and driving a notable rise in its stock price.
In the fintech space, the ARK Fintech Innovation ETF purchased 56,993 shares of Klarna Group (KLAR). This “buy now, pay later” service provider went public at the end of last year. The ETF achieved a return of approximately 29% in 2025, outperforming the Nasdaq Composite Index, which rose about 20% during the same period.
Recently, ARK’s buying activities have focused on a select few stocks. Taking Broadcom as an example, the company’s financial performance last month exceeded expectations, with a surge in artificial intelligence semiconductor revenue being the primary driver. Although the stock price has retreated from its highs and its price-to-earnings ratio appears elevated, market expectations for its future profit growth remain strong. The price-to-earnings ratio based on expected net profit for the next fiscal year is at a relatively reasonable level.
Klarna, as a player in the “buy now, pay later” space, has seen its stock price decline from its initial public offering price. However, its first quarterly report since going public showed steady revenue growth, rapid expansion in its core markets, and a substantial gross merchandise volume on its platform, indicating growth potential.
Another company that received increased holdings is Kodiak AI. Its core product leverages AI-driven autonomous driving technology, focusing on the commercial freight sector. Although still in its early stages of development, the company’s platform has accumulated significant autonomous driving mileage, and some Wall Street institutions are optimistic about its growth prospects and upside potential.
Overall, after a year of strong market growth, Wood and her funds are seeking growth opportunities in 2026 by adjusting their portfolio structure. Their operations reflect a continued focus on and strategic positioning in semiconductors, artificial intelligence, and emerging fintech sectors.
