Cathie Wood Picks a Side in the AI Chip Selloff

What happened

On Thursday, ARK Invest bought 252,592 Nvidia shares worth about $45.9 million after the stock fell roughly 9%, while selling 410,559 Broadcom shares worth about $119.7 million. Both stocks dropped during a semiconductor selloff, as investors questioned whether large cloud-computing companies would sustain AI infrastructure spending.

Confirmed

Global impact / market context

The trades show ARK adding to Nvidia while reducing Broadcom, despite declines in both stocks. If confidence in data-center spending returns, Nvidia’s role supplying processors for AI models could support its sales; Broadcom’s custom chips and networking equipment depend on continued infrastructure commitments.

Analyst inference

Both companies face concern that large cloud-computing firms may not maintain the exceptional AI infrastructure spending already assumed by investors. Nvidia fell about 9% and Broadcom about 10.5% on Thursday, making ARK’s opposite trades a notable difference in how it approached the selloff.

Confirmed

What to watch

1. Watch for signs that large cloud-computing firms sustain AI infrastructure spending; renewed commitments could support demand for Nvidia processors and Broadcom’s custom chips and networking equipment. Analyst inference
2. Track whether ARK continues buying Nvidia or selling Broadcom after these trades; repeated moves in the same direction would show whether this was a broader portfolio shift. Analyst inference
3. The article says Broadcom’s AI business has benefited from infrastructure commitments, including financing tied to Anthropic; changes in those commitments could affect demand for its equipment. Confirmed

Evidence

• gurufocus.com