ARK Invest buys $20.5 million of Broadcom ahead of Q3 earnings

ARK Invest bought 57,705 Broadcom shares valued at $20.5 million on Wednesday, August 26, ahead of the company’s fiscal third-quarter earnings scheduled for September 3. Analysts expect revenue of $29.24 billion, up 83.3% year over year, and adjusted earnings per share of $3.21, compared with $1.69 a year earlier. Broadcom expects its AI semiconductor business to generate $16 billion in quarterly revenue. RBC Capital analyst Srini Pajjuri expects a modest earnings beat and stronger forward guidance, citing networking growth despite competition in the TPU market from MediaTek and a supply agreement between Google and Marvell. TipRanks gives Broadcom a Strong Buy consensus based on 24 Buy and three Hold ratings, with a $509.96 price target implying 43.4% upside; the stock is up 3.1% year to date. ARK also sold 37,977 AMD shares across four ETFs for about $18.2 million, marking its second AMD reduction of the week. It bought 69,585 Cerebras Systems shares worth about $12.8 million and 47,794 Cloudflare shares worth roughly $13.3 million, while selling holdings in Tempus AI, Twist Bioscience, CrowdStrike, Robinhood Markets, Roblox and Brera Holdings. The trades came as Nvidia reported adjusted earnings per share of $2.22, above the $2.09 expected, and 106% year-over-year revenue growth to $96.2 billion. The reallocations highlight ARK’s continued focus on companies connected to artificial intelligence.

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