Is Cathie Wood betting on the next stage of the AI boom amid Wall Street’s tech stock crash, buying SpaceX and Nvidia while selling $120 million in Broadcom stock?
Why is Cathie Wood buying SpaceX and Nvidia stocks during the AI market crash while selling $120 million in Broadcom? Wall Street is questioning how much money technology companies can continue to spend on artificial intelligence. Cathie Wood is taking a different approach. ARK Invest bought nearly $49 million in SpaceX and $46 million in Nvidia after both stocks plunged on Thursday. But it also sold $119.7 million in Broadcom and another $20 million in CoreWeave.
The transactions came on November 5, when concerns about AI spending, data centre construction and political regulation triggered one of Wall Street’s worst technology sell-offs in months. ARK has not explained its decisions. However, the difference between its purchases and sales offers an important look at how the investment firm is repositioning its technology portfolio.
SpaceX stock: Why did Cathie Wood buy $48.7 million during the 9% crash?
SpaceX was ARK Invest’s biggest purchase on Thursday. Its funds bought 393,774 shares worth approximately $48.7 million, based on the November 5 closing price of $123.62. SpaceX shares fell 9.05% during the session.
The timing is notable because SpaceX is expanding beyond its traditional rocket and satellite business. Its AI computing operations have become an important revenue source. More than half of the company’s third-quarter sales came from renting computing capacity, according to Reuters.
This gives SpaceX another route to benefit from the AI boom. Its business is no longer linked only to satellite launches and space exploration. The company is also investing heavily in computing infrastructure to support its artificial intelligence ambitions.
However, the investment comes with risks. SpaceX is committing billions of dollars to AI infrastructure at a time when investors are questioning whether the industry can justify its spending.
Nvidia stock: ARK buys 252,592 shares after a 9.3% plunge
Nvidia was another major purchase. ARK bought 252,592 shares, worth approximately $45.9 million using Thursday’s closing price of $181.60.Nvidia shares declined 9.26% on November 5. The fall pushed the stock into negative territory for 2026, reversing gains made earlier in the year.
The purchase suggests ARK is still willing to invest in the company supplying much of the computing power behind the AI industry. Nvidia’s graphics processing units (GPUs) remain central to AI training and data centre development.
There is also a connection between Nvidia and ARK’s SpaceX investment. SpaceX’s recently announced $40 billion GPU financing arrangement involves next-generation Nvidia chips. The two investments therefore provide exposure to different parts of the same AI infrastructure business.
Rocket Lab, AMD, Alphabet and Cerebras stocks: ARK adds more AI exposure
ARK’s buying was not limited to SpaceX and Nvidia.
The funds purchased 276,925 shares of Rocket Lab, worth approximately $12.74 million. They also added 48,984 shares of Advanced Micro Devices, 53,457 shares of Alphabet and 196,897 shares of Cerebras Systems.
These purchases spread ARK’s exposure across semiconductor companies, AI computing, cloud technology and the space industry.
The three purchases with reported dollar values total approximately $107.3 million. The actual buying value is higher because ARK did not disclose comparable dollar figures for AMD, Alphabet and Cerebras.
Broadcom stock: Why did Cathie Wood sell $119.7 million in shares?
The most striking decision was ARK’s Broadcom sale.
The investment firm sold 410,559 shares worth approximately $119.7 million, using Broadcom’s November 5 closing price of $291.53. The stock declined 10.43% during Thursday’s session.
This is particularly interesting because Broadcom is also a major beneficiary of AI infrastructure spending. Its custom AI accelerators and networking products are important for large data centre operators.
ARK’s decision to buy Nvidia while selling Broadcom could indicate a change in how it wants to participate in the AI semiconductor market. It may be shifting exposure towards general-purpose GPUs and away from some of its custom-chip and networking exposure.
However, this remains an interpretation. ARK has not disclosed why it sold Broadcom.
CoreWeave stock: Another $20 million AI bet goes out of ARK’s portfolio
ARK also sold 412,666 shares of CoreWeave, worth approximately $20 million.
The company operates cloud computing infrastructure that gives customers access to powerful Nvidia GPUs. Its business is directly connected to demand for AI data centres.
Selling CoreWeave while buying Nvidia and SpaceX is another indication that ARK is not treating every AI-related company equally.
Why did the AI stock market crash? Nasdaq falls 5.5% before Friday’s rebound
The transactions came after a major market decline on November 5.
The Nasdaq Composite plunged 5.5% to 24,315, entering correction territory after falling more than 10% from its October record. The S&P 500 dropped 4.36% to 7,353.73, while the Dow Jones Industrial Average lost 3.44% to 51,523.06. The sell-off erased approximately $3 trillion in S&P 500 market value.
Two concerns drove the selling. First, investors questioned whether the huge investments in AI infrastructure would generate enough revenue to justify current valuations. Second, Democratic victories in the midterm elections raised concerns about tighter restrictions on data centre construction.
Goldman Sachs estimated that potential state and local restrictions could affect around 45% of planned US data centre capacity expansion, according to Reuters.
Technology shares started recovering on Friday. Reuters reported that the Nasdaq Composite gained 1.23% to 24,614.53 at the opening, while the S&P 500 rose 0.26%. The Dow remained under pressure, falling 0.94% to 51,036.69.
SpaceX’s $40 billion Nvidia chip deal: Why Wall Street is watching
ARK’s SpaceX purchase also comes at an important time for the company’s financing plans.
On October 26, SpaceX announced an approximately $40 billion master finance lease for Nvidia GPUs and related equipment through an Apollo-managed entity. The arrangement is designed to support its expanding computing infrastructure. Goldman Sachs served as the sole structuring agent, with Apollo leading the financing. The equipment is expected to arrive in the first half of 2027.
But another development has attracted attention. Goldman Sachs and Apollo have reportedly started approaching investors to sell portions of the financing, with some investors being offered stakes of up to $500 million. The formal syndication process is expected to follow, Reuters reported.