Tracking Cathie Wood: Continues to bet on 'chip rising star' CBRS, takes profits on legacy giants TER and AMD at elevated levels

Last night and early this morning, U.S. equity markets resumed trading after the holiday break and continued their strong momentum, with semiconductor and AI-related stocks rallying collectively, driving both the S&P 500 and Nasdaq to new record highs.

Amid heightened market sentiment, Cathie Wood continues executing her sector rotation strategy, staying true to her consistent approach of taking profits from established giants and betting on disruptive innovation.

Buying focus: Targeting 'chip upstarts' and 'synthetic biology'

Massively bought $Cerebras Systems (CBRS.US)$Approximately 35,100 shares.Cerebras officially listed on the Nasdaq on May 14 and has been viewed by the market as a 'strong challenger to NVIDIA.' Facing a recent pullback in its share price, Cathie Wood chose to add to her position at lower levels, reaffirming her confidence in the long-term breakout potential of its 'wafer-scale' AI chips. Notably, with CBRS’s market cap reaching approximately $70 billion, S&P Dow Jones Indices has confirmed that it meets the fast-entry criteria (effective May 25), which is expected to trigger significant passive fund inflows.

Modestly increased position in $Twist Bioscience (TWST.US)$2,451 shares.As a leader in synthetic biology, Twist Bioscience’s core competitive advantage lies in its proprietary 'silicon-based DNA synthesis platform.' The company previously delivered exceptionally strong earnings, and recently biotech firm LenioBio announced a deep strategic partnership with Twist—a move that significantly raises Twist’s competitive moat within the industry.

Selling focus: Reducing exposure to 'established chip giants' and 'semiconductor equipment makers'

Staying consistent with her past style, Cathie Wood reduced holdings in major semiconductor testing equipment manufacturer $Teradyne (TER.US)$ 17,000 shares, and continues to divest from the chip giant $Advanced Micro Devices (AMD.US)$ 5,301 shares.

Although both companies are leaders in their respective fields, their current valuations are relatively high, and their hardware and chip designs still follow a more traditional iterative upgrade architecture. Cathie Wood has chosen to proactively take profits from these legacy giants to free up capital liquidity and reallocate funds toward the next generation of more explosive and disruptive technological trends.

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