Cathie Wood's ARK Invest Buys $15.5M in Nvidia, Sells AMD During AI Stock Rout
ARK purchased 78,965 Nvidia shares on July 28 across its five largest exchange-traded funds (ETFs), making the acquisition one of its biggest semiconductor investments in recent weeks. The purchase came after Nvidia had fallen about 17% from its mid-May high, as investors questioned whether hundreds of billions of dollars in AI infrastructure spending would generate sufficient returns.
The move highlights ARK’s strategy of increasing exposure to companies it believes are positioned to benefit from long-term technological disruption during periods of market weakness rather than reducing risk during sharp corrections.
ARK rotates capital from AMD into Nvidia
The Nvidia purchase coincided with another reduction in ARK’s holdings of Advanced Micro Devices (AMD), continuing a portfolio rotation that has increasingly favored Nvidia’s dominant position in AI accelerators and data center computing.
Nvidia has maintained its leadership in AI infrastructure through its data center business, which reported 92% year-over-year revenue growth in its latest fiscal first quarter. The division has become the company’s largest source of revenue as demand for AI training and inference hardware continues to expand globally.
Although ARK continues to own AMD across several of its funds, the latest trades indicate greater confidence in Nvidia’s near-term competitive position as hyperscale cloud providers continue investing heavily in AI infrastructure.
AI market selloff creates buying opportunity
ARK executed the purchase during one of the most volatile weeks for AI-related equities this year. Technology stocks declined sharply after investors questioned whether more than $750 billion in announced AI infrastructure commitments would generate returns quickly enough to justify current valuations.
Nvidia was among the companies affected by the selloff despite continuing strong demand for its AI processors. The stock later recovered part of its losses after investors reassessed the long-term outlook for artificial intelligence spending and renewed confidence following strong earnings from major cloud providers.
ARK’s investment philosophy has consistently emphasized buying high-conviction technology companies during periods of market weakness, particularly when broader investor sentiment turns negative despite unchanged long-term fundamentals.
Nvidia purchase part of broader $40 million investment spree
The Nvidia acquisition formed part of a broader buying program completed on July 28. ARK invested more than $40 million across three major technology companies, purchasing approximately $15.5 million in Nvidia, $12.4 million in Tesla and $12.2 million in SpaceX shares.
The purchases were spread across multiple ARK funds, including the ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), ARK Next Generation Internet ETF (ARKW) and ARK Space Exploration & Innovation ETF (ARKX).
The transactions reflect continued emphasis on artificial intelligence, autonomous systems and space technology three themes ARK has repeatedly identified as core long-term investment opportunities.
AI infrastructure remains ARK’s highest-conviction theme
The latest trades reinforce ARK’s belief that AI infrastructure spending remains in its early stages despite recent volatility. Nvidia continues to dominate the market for high-performance AI processors used by cloud providers, enterprises and research institutions, making it a central beneficiary of expanding investment in generative AI.
For ARK, Nvidia’s leadership in AI chips, software and data center infrastructure aligns closely with its long-term strategy of investing in companies positioned to benefit from disruptive technological change over a multi-year horizon.
What ARK’s move means for investors
Cathie Wood’s latest trades do not necessarily signal expectations of an immediate rebound, but they reinforce ARK’s conviction that AI infrastructure remains one of the strongest structural growth themes in technology markets. By increasing Nvidia exposure while trimming AMD, the firm is concentrating its semiconductor allocation around the company it believes has the strongest competitive advantages.
At the same time, the purchases underscore that institutional investors continue to use market corrections to build positions in leading AI companies rather than retreat from the sector altogether. Whether that strategy proves successful will depend on Nvidia‘s ability to sustain rapid growth in data center revenue and demonstrate that the unprecedented wave of AI infrastructure investment translates into durable earnings over the coming years.