Cathie Wood sells $9.5 million of popular AI stocks after big rally

Cathie Wood sells $9.5 million of popular AI stocks after big rally originally appeared on TheStreet.

Cathie Wood is known for making bold bets on the future of technology, and just as known for cashing out when the timing feels right.

In the past week, the chief of Ark Investment Management trimmed some high-flying stocks, including one stock that’s skyrocketed more than 270% and another that’s climbed over 80% year-to-date.

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Wood’s funds have been through a volatile ride this year, swinging from strong gains to sharp losses, and now back to outperforming the broader market.

In January and February, the Ark funds rallied as investors bet on the Trump administration’s potential deregulation that could benefit Wood’s tech bets. But the momentum faded in March and April, with the funds trailing the market as top holdings—especially Tesla, her biggest position—slid amid growing concerns over the macroeconomy and trade policies.

Now, the fund is regaining momentum. As of June 13, the flagship Ark Innovation ETF  (ARKK)  is up 8% year-to-date, outpacing the S&P 500’s 1.6% gain.

Wood had a remarkable gain of 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style.

As of June 13, Ark Innovation ETF, with $5.5 billion under management, has delivered a five-year annualized return of 0.4%. In comparison, the S&P 500 has an annualized return of 16.2% over the same period.

Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics.

Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds’ values.

Related: Cathie Wood’s net worth: The Ark Invest CEO’s wealth & income

The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.

Wood recently said the U.S. is coming out of a three-year “rolling recession” and heading into a productivity-led recovery that could trigger a broader bull market.

In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026, as she expects “more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months.”

“If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year,” she wrote.

She also struck an optimistic tone for tech stocks.

“During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing,” she said.

Investor confidence has wavered. Over the past year, the Ark Innovation ETF saw $2 billion in net outflows, as some investors grew wary of volatility and underperformance. But in a potential sign of renewed interest, the fund brought in $250 million in fresh capital between June 7 and June 12, according to ETF research firm VettaFi.

On June 11, Wood’s Ark funds sold 55,829 shares of Palantir Technologies  (PLTR) . That chunk of stock was valued at roughly $7.6 million.

Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients worldwide.The company reported stronger first-quarter revenue in May and raised its full-year outlook as demand for AI tools increased. “We are delivering the operating system for the modern enterprise in the era of AI,” CEO Alex Karp said.

Related: Nvidia stock could surge after surprising Taiwan Semi news

While many tech stocks have struggled this year, Palantir has stood out. Its shares are up 81.7% in 2025 and just hit a record close of $137.40 on June 13.

Much of the recent momentum comes from its government work.

Back in May 2024, Palantir won a $480 million, five-year U.S. Army contract to build its Maven Smart System, which is a battlefield AI prototype. Last month, the Defense Department modified the contract, increasing the licensing ceiling from $480 million to $1.275 billion.

Palantir’s Foundry platform has been adopted by at least four federal agencies, including the Department of Homeland Security and the Department of Health and Human Services, according to a New York Times report published May 30. Fannie Mae also announced a partnership with Palantir in May to work on AI-based fraud detection.

Palantir remains a core position for Wood even after recent sales. The stock is now the 8th largest holding in the ARK Innovation ETF, accounting for 4.7%.

Wood said in February that she’s moving away from hardware and infrastructure and doubling down on software, with Palantir as one of her top picks.

“Palantir is a very expensive stock, but there’s nothing like it in the software space,” Wood said in a CNBC interview. “It is, we believe, going to dominate the biggest part of the tech stack when it comes to AI. And that’s the platform as a service part of the stack.”

Another big trade Wood made on June 11 was selling 12,728 shares of CoreWeave Inc.  (CRWV) , valued at roughly $1.9 million.

CoreWeave is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. The company has delivered explosive growth and won support from Nvidia and OpenAI.

Related: Veteran analyst unveils bold price target for Tempus AI stock

On March 28, CoreWeave launched its initial public offering, which was one of the largest AI-related listings since 2021. Since then, the stock is up more than 277%.

That company is now Nvidia’s largest holding, making up more than 78% of its disclosed portfolio. In the first quarter this year, Nvidia bought 24,182,460 shares after the IPO, according to data from WhaleWisdom based on 13F filings.

On May 14, CoreWeave reported better-than-expected revenue on Wednesday in the company’s first earnings release since going public. CoreWeave reported a 420% year-over-year revenue increase to $981.6 million for the first quarter.

Despite this growth, the company’s net loss widened to $314.6 million from $129.2 million a year earlier, partly driven by $177 million in stock-based compensation linked to its IPO.

Bloomberg reporter Ryan Vlastelica commented that CoreWeave and Palantir are drawing comparisons to meme stocks after sharp rallies. But unlike GameStop, both are backed by strong demand.

Still, valuations are a concern. Palantir trades at 71 times estimated sales, the highest in the S&P 500. CoreWeave, despite a $315 million loss last quarter, is valued at 10 times projected sales, well above the S&P 500’s average of 3, Bloomberg reported.

CoreWeave is not in Ark Innovation’s top 10 holdings.

Wood’s recent trades also include buying shares of GitLab  (GTLB) , selling Kratos Defense  (KTOS)  and Roblox  (RBLX) .

Related: Top analyst sends bold message on S&P 500

Cathie Wood sells $9.5 million of popular AI stocks after big rally first appeared on TheStreet on Jun 15, 2025

This story was originally reported by TheStreet on Jun 15, 2025, where it first appeared.