ARK Invest increases Nvidia stake by about $26.6 million, adds Broadcom and Cloudflare

ARK Invest stepped up buying in major AI and semiconductor-related stocks during the recent technology correction, adding about 122,422 Nvidia shares across five of its six main exchange-traded funds on August 10 in a purchase valued at roughly $26.6 million. The firm also bought 39,020 Broadcom shares for about $16.5 million and 58,142 Cloudflare shares for about $18.1 million, while also adding to Teradyne, Intellia Therapeutics, Cerus and Schrodinger. The move came as chip and growth stocks pulled back from recent highs. Nvidia has fallen about 8% from its May record of $236.54, even as the company posted quarterly revenue growth of 85% and adjusted net income growth of 139%. Broadcom has dropped more than 15% from its June peak of $495. The company reported fiscal second-quarter adjusted EPS of $2.44 on June 3, topping expectations of $2.40, while revenue of $22.19 billion missed the $22.27 billion consensus estimate. Broadcom later guided for fiscal third-quarter revenue of about $29.4 billion, ahead of Wall Street's $28.53 billion estimate, with results due September 2, but investors were disappointed that it reaffirmed rather than raised its AI semiconductor revenue guidance of more than $100 billion through fiscal 2027. Cloudflare was another notable addition despite its strong share-price momentum, with the stock recently reaching an all-time high of $324.73 as quarterly revenue grew 36% year over year, the fastest pace in three years. To help finance the purchases, ARK sold about 60,458 Deere & Company shares worth roughly $36.8 million and reduced positions in Shopify, Snowflake, Palantir Technologies, 10x Genomics, Twist Bioscience, Elbit Systems and Iridium Communications. The buying spree unfolded against a broader semiconductor pullback. The Philadelphia Semiconductor Index has fallen about 4% over the past month and remains roughly 15% below its June peak. Bank of America described the weakness as a summer reset rather than a reversal in fundamentals and said the sector has seen repeated corrections since ChatGPT's launch in November 2022. The backdrop also highlights the pressure on Cathie Wood's strategy: Morningstar data through August 11 showed the ARK Innovation ETF's five-year annualized return at negative 7.70%, compared with 11.68% for the S&P 500, while VettaFi said the fund saw about $1.48 billion in net outflows over the 12 months through August 10.

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