Cathie Wood Is Buying The Dip In Nvidia As She Adds $45.9 Million Of NVDA And Sells $119.7 Million Of Broadcom
ARK bet on one AI chip giant and dumped another on the same brutal selloff day. A midterm shock, data center politics, and a surprising Friday rebound make the swap harder to read than it looks.
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ARK Invest took both sides of the AI trade during Thursday’s chip selloff. Citing ARK’s daily trade disclosures, TipRanks reported that ARK’s funds bought 252,592 shares of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) on Nov. 5, worth $45.9 million at current prices. TipRanks also reported that ARK sold 410,559 shares of Broadcom (NASDAQ:AVGO), valued at $119.7 million. Both dollar figures are TipRanks’ estimates at the prices it used. They differ from ARK’s stated cost. ARK sold a larger dollar amount of Broadcom than it bought of NVIDIA, and it gave no reason for either trade.
Post-Election Rout Hit Both Chipmakers Hard
ARK made the trades on a rough day for semiconductors. NVIDIA fell 9.26% to close at $181.60, below its Dec. 31, 2025 close of $186.06, so it finished the day down for 2026. TipRanks put the year-to-date fall at around 2%. Broadcom dropped 10.43% to $291.53, and TipRanks said that pushed its 2026 losses to about 16%.
TipRanks linked the anxiety to the Democrats’ midterm victory, “which has raised concerns about stricter oversight of data-center construction and potential delays to future projects.”
Both Stocks Bounced Before Friday’s Open
At 6:00 AM ET Friday, NVIDIA traded at $188.90 in premarket trading, up 4.02%. That put it back up 1.52% for 2026. Broadcom sat at $303.54, up 4.12% but still down 11.82% for the year. Premarket prices can change once the market opens. Both stocks rebounded the morning after ARK’s trades, and a single session proves nothing about which side of the swap was right.
Data Center Politics Threaten Both Names
According to TipRanks, “Political resistance to large facilities has grown amid complaints about electricity bills, water usage, and pressure on local infrastructure.” For NVIDIA, it warned that “Any resulting project delays could postpone purchases of advanced graphics processors, potentially affecting revenue expectations despite healthy underlying demand.” For Broadcom, TipRanks said “the same spending concerns now threatening its rival also apply to Broadcom, particularly if planned construction projects face political obstacles.” Federal data back up the power strain. A Government Accountability Office report says the Department of Energy projects data centers will make up as much as 12% of U.S. electrical demand by 2028. All that load has to be generated, moved, and cooled by someone other than the chipmakers, which is the whole point of our free report on seven AI infrastructure suppliers behind the expansion.
Recent results still show heavy demand. NVIDIA’s fiscal second-quarter 2027 release reported revenue of $96.22 billion, including $89.02 billion from data centers, and third-quarter guidance of $108.0 billion plus or minus 2%. On the earnings call, Jensen Huang said, “Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%.” Broadcom’s AI semiconductor revenue reached $16.70 billion in its fiscal third quarter, up 221% from a year earlier, and it forecast that figure to $21.7 billion for the fourth quarter.
Wall Street Stays Bullish on Both
According to TipRanks, all 33 analysts covering NVIDIA rate it a Buy. TipRanks sets NVIDIA’s average one-year price target at $322.50, which it said implied 77% upside from Thursday’s close. TipRanks shows Broadcom with 29 Buy ratings and one Hold. Its average target of $523.72 indicated about 80% upside from Thursday’s close, per TipRanks. These consensus figures summarize analyst opinion and make no promise about returns.
TipRanks also reported that Broadcom is part of a $63 billion financing agreement, backed by large Wall Street banks and Blackstone (NYSE:BX), that supports purchases of its AI accelerators and networking equipment for Anthropic.
What Holders of Either Chipmaker Should Watch
ARK gave no reason for the swap, and a single day of trading tells you little about a long-term plan. Shareholders in ARK’s funds own whatever ARK trades, so their exposure moved toward NVIDIA and away from Broadcom. Investors in broad index funds already hold both chipmakers. The move fits Wood’s recent trading. Our earlier coverage, “Cathie Wood Sells $12.8 Million Of Alphabet,” covered her sale of Alphabet (NASDAQ:GOOGL), which CoinCentral valued at $12.8 million.
Going forward, keep an eye on whether states and towns tighten data center permitting, whether hyperscalers change their construction schedules, and whether NVIDIA’s Vera Rubin ramp and Broadcom’s custom accelerator orders keep pace with guidance in each company’s next earnings report.
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