Cathie Wood Pours $27 Million Into Major AI Stock

This article first appeared on GuruFocus.

Cathie Wood’s Ark Invest made another aggressive rotation toward artificial intelligence last week, adding nearly $30 million of Cloudflare (NYSE:NET) and $27 million of Nvidia (NASDAQ:NVDA) while unloading almost $60 million of Deere (NYSE:DE). The trades suggest Ark is concentrating more capital behind AI infrastructure, advanced computing and space even as valuations across parts of the technology market remain elevated.

Cloudflare was Ark’s largest purchase, with the firm buying about $29.9 million across its funds after the stock surged more than 16% following stronger-than-expected second-quarter results and guidance.

Ark also purchased a combined $26.9 million of Nvidia across ARKK, ARKF, ARKQ, ARKW and ARKX. That move came after Nvidia confirmed it was working with lenders on financing tied to as much as $500 billion of AI infrastructure development.

The buying stretched well beyond those two names.

Ark added roughly $24.5 million of Cerebras Systems (NASDAQ:CBRS), another AI-computing bet, along with about $23 million of Rocket Lab (NASDAQ:RKLB) and $16.7 million of Broadcom (NASDAQ:AVGO). Teradyne (NASDAQ:TER) received another $9.7 million.

The other side of Wood’s portfolio rotation was just as notable.

Ark sold approximately $59.9 million of Deere, its largest disposal of the week. It also cut $22.8 million of Shopify (NASDAQ:SHOP) and $11.7 million of Palantir (NASDAQ:PLTR), while trimming holdings including Snowflake, Caterpillar and several biotechnology names.

The trades point to a more focused bet that the next leg of AI spending will continue flowing toward computing capacity, networking and infrastructure.

Investors Takeaway

Ark’s purchases should not automatically be read as a signal that these stocks are cheap. Instead, investors should watch whether their earnings can justify Ark’s rising exposure.

For Cloudflare, the key tests are sustained revenue acceleration, operating leverage and evidence that AI workloads are translating into durable demand.

For Nvidia and Broadcom, hyperscaler capital spending and AI infrastructure financing remain critical. Any slowdown in data-center budgets could quickly challenge premium valuations.

Ark’s Deere sale is also worth monitoring. If industrial exposure keeps falling while AI purchases expand, it would reinforce that Wood is making an increasingly concentrated bet on the durability of the AI capital cycle.