Cathie Wood Sells More Tesla, Pivots to AI Boom

This article first appeared on GuruFocus.

Cathie Wood is shaking things up again. The ARK Invest founder trimmed her Tesla (NASDAQ:TSLA) holdings once more and she’s putting that money to work in the booming world of AI and chips.

According to ARK’s latest filings from November 10, the firm sold about 5,400 Tesla shares worth roughly $2.4 million across its main funds. It’s part of Wood’s ongoing effort to rebalance Tesla’s heavy presence in her portfolio. The move comes as Tesla stock stays volatile, weighed down by slower deliveries and tougher competition in China. The China Passenger Car Association reported that Tesla’s China-made EV sales fell nearly 10% from a year ago and a steep 32% from September.

But Wood isn’t backing away from growth. ARK scooped up about 173,800 shares of Pony AI (NASDAQ:PONY) worth around $2.5 million and added 16,600 shares of Taiwan Semiconductor (NYSE:TSM) valued near $4.9 million. She also bought 94,000 shares of Baidu (NASDAQ:BIDU), a $12.4 million bet on China’s AI rebound.

Wood’s latest trades show she’s rotating out of yesterday’s star and doubling down on where she thinks the next big wave of innovation will hit AI.