Cathie Wood pours millions into a 26-year-old tech giant

Cathie Wood’s 2025 so far seems like classic ARK, with huge bets on disruption and full tolerance for the choppiness that comes with it.

Her flagship ARK Innovation ETF  (ARKK) is up over 57% YTD, with ARK Next Gen Internet soaring nearly 65%, and ARK Autonomous Tech & Robotics close behind at 47%. All three funds are outpacing the S&P 500’s 15% total return by a comfortable margin.

Naturally, Wood’s flamboyant investing style works when the narrative and numbers align, and this year they have, with AI and software leaders pushing ahead with a purpose.

It also sets the stage for where she is leaning next, with her quietly adding to a comeback king in China’s tech behemoth Alibaba  (BABA) .

The 26-year-old tech giant has just received a major vote of confidence from Cathie Wood, which has the potential to fuel even more momentum in its rally.

Cathie Wood is doubling down on China in a big way.

Her ARK Invest ETFs just shelled out millions into Alibaba and Baidu  (BIDU) this week, reflecting her confidence in the country’s tech industry even as other U.S. investors tread cautiously.

On October 2, ARK Innovation ETF scooped up 45,478 Baidu shares worth $6.25 million and 14,453 Alibaba shares valued at $2.64 million.

The move extends a string of recent buys signaling Wood’s confidence in Chinese tech giants leveraging AI. Both Baidu and Alibaba have been rolling out in-house chips recently to reduce their reliance on Nvidia.

Also, Alibaba unveiled a high-performance processor that aims to challenge the U.S. giant’s dominance in AI hardware.

The shopping spree wasn’t limited to the internet heavyweights, though.

ARKQ, the Autonomous Technology & Robotics ETF, added a relatively small position in Kodiak, a robotaxi play that has been on Wood’s radar.

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But it wasn’t all additions.

ARK trimmed its exposure to Roku, dropping 64,782 shares worth $6.71 million across ARKK and ARKW. The reduction comes despite Roku’s 39% year-to-date rally, reflecting growing caution on the streaming platform’s next leg.

Meanwhile, ARKK exited 44,209 shares of Brera Holdings for $1.09 million, locking in gains following a mind-boggling 320% surge. Wood had plowed north of $200 million into Brera over recent weeks, betting on its impressive pivot into crypto infrastructure.

• Sept. 30, 2025 — Baidu: ARKK purchased 52,388 shares ($6.9 million to $7.1 million), a fresh addition that reinforced ARK’s China AI tilt.

• Sept. 24-25, 2025 — Alibaba & Baidu: Multiple ARK funds made follow-on buys, underscoring conviction in the China bet while trimming AMD stock elsewhere.

• Sept. 22, 2025 — Alibaba: ARKF re-entered with a buy worth $8.2 million, ARK’s first Alibaba purchase since 2021.

• Sept. 22, 2025 — Alibaba: ARKW also re-entered the same day with a buy worth $8.1 million.

• Sept. 22, 2025 — Baidu: ARKQ added nearly $3 million worth of shares, building Baidu exposure along with the Alibaba re-entry.

• Sept. 18, 2025 — Baidu: ARKQ scooped up $677,000 worth of shares, a smaller addition ahead of the larger Sept. 22 move.

• Sept. 17, 2025 — Baidu: ARKQ acquired $694,000 worth of shares, marking the start of its Baidu build-up.

Alibaba has roared back with a vengeance as China’s top AI player.

Its U.S.-listed shares have gone parabolic this year, surging 127%, adding roughly $250 billion in market value with investors buying into Beijing’s AI push.

Domestic money is flowing in, too.

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By September 30, local investors upped their stake to 11% of Alibaba’s outstanding shares, rising from 8.6% a month earlier, according to Hong Kong Stock Exchange data.

Moreover, the valuation shows a shift, with BABA stock trading at 22 times forward earnings in Hong Kong, roughly double its three-year average and significantly cheaper than its U.S. tech peers like Amazon and Microsoft.

CEO Eddie Wu has put numbers behind the narrative, committing an eye-catching $53 billion in AI spending over three years.

Fund manager buys and sells

It is a direct attempt to keep abreast of U.S. rivals that will collectively spend over $340 billion this year. Alibaba Cloud is already delivering the goods, with 26% second-quarter revenue growth, the fastest across the group.

The product side is keeping the momentum hot.

Alibaba’s flagship AI model Qwen3-Max debuted this fall, while consumer apps such as Amap hit record traffic of 360 million daily active users during the October holiday, supercharged by its AI-driven “Street Stars” feature.

Wall Street whales are leaning in as well.

Billionaire Ryan Cohen upped his stake to close to $1 billion. Meanwhile, Bridgewater and Saudi PIF cut out, showing a contrast in positioning that stands out even more.

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This story was originally reported by TheStreet on Oct 3, 2025, where it first appeared in the Technology Business News section. Add TheStreet as a Preferred Source by clicking here.