Tracking Cathie Wood: Continued focus on 'AI + Precision Medicine', increasing positions in TEM and NTLA, fully divesting from traditional genetic diagnostics stocks

Overnight, US major indexes surged then pulled back. Affected by the adjustment in previously strong sectors, all three major indexes closed lower:S&P 500fell 0.38%,Nasdaqdropped 0.13%,Dow Jones Industrial AverageDropped by 0.63%.

In the current market conditions, Cathie Wood's portfolio adjustments on May 7 demonstrated a focus on the 'AI + Healthcare' sector: On the buying side, she aggressively increased positions in Tempus AI $Tempus AI (TEM.US)$ and gene-editing giant $Intellia Therapeutics (NTLA.US)$ ; while on the selling side, she conducted a major sell-off of traditional genetic testing and diagnostics sectors, unloading shares of $CareDx (CDNA.US)$ 、 $Adaptive Biotechnologies (ADPT.US)$ 、 $Veracyte (VCYT.US)$ , continuing her trend of reducing semiconductor hardware stocks $Advanced Micro Devices (AMD.US)$ and $Teradyne (TER.US)$.

Buying Focus: A strong bet on the 'AI + Precision Medicine' ecosystem

– Aggressively bought $Tempus AI (TEM.US)$155,000 shares, reinforcing the healthcare big data moat: Following the purchase of 145,800 shares on May 6, Ms. Wood today added another 155,000 shares. Tempus AI is a cutting-edge company focused on applying AI technology to precision medicine, with an extremely large clinical and molecular database. ARK is aggressively accumulating companies that control massive, high-value proprietary healthcare data. From an institutional perspective, the 'data moat' capable of empowering new drug development and personalized treatment through AI algorithms is considered the next explosive growth area for AI applications.

– Continued increase in position for $Intellia Therapeutics (NTLA.US)$102,200 sharesFollowing the spree of hundreds of thousands of shares purchased at the end of April and early May, ARK continues to maintain its buying momentum for NTLA. As a pioneer in the field of in vivo gene editing, NTLA is considered a core target for future cures of genetic diseases.

Sell-side direction: A complete liquidation of traditional genetic diagnostics stocks continues, alongside profit-taking in semiconductor hardware at high levels.

On the sell-side, strict 'weeding out the weak and retaining the strong' and 'sector rotation' discipline within the biotech and hardware sectors are still ongoing.

– Liquidation of traditional medical and diagnostic assets: ARK reduced holdings in organ transplant diagnostics company $CareDx (CDNA.US)$44,300 shares, immune sequencing company $Adaptive Biotechnologies (ADPT.US)$33,100 shares, and genome diagnostics company $Veracyte (VCYT.US)$14,200 shares.This is a highly significant internal sector cleansing. Compared to Tempus AI's vast AI database and NTLA’s fundamental editing technology, these traditional molecular diagnostics and testing companies face growth bottlenecks in market space and lack powerful AI algorithm support. ARK is removing such low-growth assets to concentrate liquidity on cutting-edge enterprises.

– Post-earnings continued reduction $Twist Bioscience (TWST.US)$13,100 sharesTWST just announced its latest earnings on May 4th. Although revenue showed growth, the company is still in a loss-making state. Facing a volatile macro environment, ARK is reducing its exposure to high-risk innovative targets that have yet to become profitable. Diverting funds from TWST into AI healthcare targets with deeper technological moats can effectively enhance the overall efficiency of the portfolio.

– Continuing to take profits on hardware assets at their peak：Reduced holdings in chip giant $Advanced Micro Devices (AMD.US)$8045 Shares and Semiconductor Testing Equipment Supplier$Teradyne (TER.US)$9,210 shares.After AMD reported better-than-expected Q1 results and raised its growth forecast, the current share price is at a historical high. ARK is methodically 'locking in' profits from hardware positions and reallocating the resulting liquidity to AI healthcare application sectors that are attractively valued and on the verge of a breakout.

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