Tracking Cathie Wood: Bottom-fishing Broadcom with over 140,000 shares amidst a downturn, reducing Tesla and Taiwan Semiconductor holdings

U.S. Eastern Time on Wednesday, the three major U.S. stock indexes collectively closed lower, with the Nasdaq index leading the declines as technology stocks weakened and investor funds shifted to defensive sectors; meanwhile, bank stocks continued their decline after mixed quarterly earnings reports.

Looking at Cathie Wood's overnight moves,This operation sends a strong signal: ARK is undergoing a noticeable 'AI sector rotation,' with funds flowing from some mature targets and hardware manufacturing to AI network infrastructure and emerging applications.

Direction of increased positions: Buying Broadcom at a low point, betting on disruptive innovation fields.

Cathie Wood’s most eye-catching move this time was overnight when, $Broadcom (AVGO.US)$Broadcom fell more than 4%, prompting her to buy 143,100 shares at a low point.

Logic analysis: As the AI computing power race enters its second half, besides GPUs themselves, networking transmission technologies (such as Ethernet and optical modules) that connect GPUs have become new bottlenecks and growth points. Broadcom, as the global leader in AI network chips and custom chips (ASICs), has become increasingly important.

ARK's intention: This move by Cathie Wood may indicate that she believes the main AI investment theme is expanding – shifting from just 'core computing power' to 'connectivity for computing power' and 'customized chips.' Broadcom’s strong cash flow and monopolistic position in AI infrastructure make it another core target following NVIDIA.

Apart from the giants, ARK continues to bet on disruptive innovation fields:

$Kodiak AI (KDK.US)$ : Increased holdings by 72,300 shares. This shows ARK’s confidence in autonomous driving trucks/logistics AI remains strong.

$Klarna Group (KLAR.US)$ : Increased holdings by 57,000 shares. As a pioneer in AI applications within the payment and shopping sectors, Klarna has likely gained ARK’s approval for its recent progress in leveraging AI to reshape financial services.

Sell direction: Reduced positions in Tesla and Taiwan Semiconductor; Unity was significantly sold off

On the selling side, operations were equally sharp:

$Tesla (TSLA.US)$ : Reduced holdings by 86,100 shares. This is typically ARK's standard operation—dynamic rebalancing. When Tesla's share price rises leading to an oversized holding ratio, ARK usually sells part of its position to lock in profits and reallocates funds to other undervalued growth stocks (such as Broadcom this time). This doesn’t indicate bearishness but rather reflects disciplined position management.

$Unity Software (U.US)$ : Significantly reduced holdings by 126,400 shares, which is a relatively negative signal. Unity, once considered a 'metaverse pickaxe stock,' may currently face issues such as stagnant growth or increased competition. ARK's large sell-off might suggest impatience or doubts about its fundamental logic.

$Taiwan Semiconductor (TSM.US)$ : Slightly reduced holdings by 19,300 shares. Considering the purchase of Broadcom, it seems Ms. Wood prefers asset-light chip designers and architects (like AVGO) over asset-heavy foundries (TSM). Notably, Taiwan Semiconductor released its earnings today.

Additionally, Ms. Wood slightly reduced holdings in Israel's cross-border e-commerce platform technology company $Global-E Online (GLBE.US)$ , defense stock $Kratos Defense & Security Solutions (KTOS.US)$ , a clinical genetic testing platform company $Natera (NTRA.US)$ , a semiconductor testing equipment supplier $Teradyne (TER.US)$ , and the U.S. financial software giant $Intuit (INTU.US)$ 。

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