Cathie Wood Invests $17.6 Million in Major AI Stock

This article first appeared on GuruFocus.

Cathie Wood’s ARK Invest rotated sharply toward AI infrastructure on Wednesday, buying nearly $20 million of SpaceX (NASDAQ:SPCX) and roughly $17.6 million of Nvidia (NASDAQ:NVDA) while selling Roblox (NYSE:RBLX), Palantir (NASDAQ:PLTR) and Shopify (NASDAQ:SHOP). The trades suggest ARK is using recent volatility to increase exposure to capital-intensive AI winners while harvesting gains or reducing risk elsewhere.

ARK manages actively traded exchange-traded funds focused on disruptive innovation, including autonomous technology, space exploration, genomics, fintech and next-generation internet companies. Its daily disclosures are closely followed because Wood frequently buys into sharp selloffs and trims positions after powerful rallies.

Across several funds, ARK purchased 181,830 SpaceX shares worth $19.69 million. The move came after SpaceX plunged 13.6% following its first public earnings report, as investors focused on quarterly capital expenditures of roughly $18.4 billion despite revenue surging to about $7.8 billion.

That makes ARK’s purchase a clear bet that Starlink growth, launch operations and emerging AI revenue can eventually justify SpaceX’s heavy spending. SpaceX shares remained near $108 Thursday, well below their post-IPO peak.

ARK also added 80,415 Nvidia shares. Nvidia’s latest quarter delivered record revenue of $81.6 billion, including $75.2 billion from data centers, reinforcing its central role in AI infrastructure.

On the sell side, ARK unloaded 467,486 Roblox shares, 70,259 Palantir shares and 89,033 Shopify shares. The Palantir reduction is particularly notable after another strong earnings report, although the stock’s valuation remains demanding at roughly 133 times trailing earnings.

Investor Takeaway On Cathie Wood Stock

Investors should not automatically interpret ARK’s sales as bearish calls, since actively managed ETFs regularly trim outperformers to control position sizes. The bigger signal is ARK’s willingness to buy SpaceX immediately after its earnings-driven collapse.

For SpaceX, watch capital spending, Starlink subscriber economics and the approaching release of additional post-IPO shares. For Nvidia, the next major catalyst is its Aug. 26 earnings report, when investors will assess whether extraordinary data-center growth can continue.