Cathie Wood Makes Big AI Bet, Trims Bitcoin ETF

This article first appeared on GuruFocus.

Cathie Wood’s Ark Invest made a sharp rotation across AI, <a href="https://xpertsstudio.com/strategy-jumps-16-as-sec-exemption-lifts-crypto/” title=”Strategy Jumps 16% as SEC Exemption Lifts Crypto”>crypto and healthcare last week, adding nearly $25 million of CoreWeave (NASDAQ:CRWV) while selling almost $40 million of its ARK 21Shares Bitcoin ETF (ARKB). The moves suggest Ark is leaning further into AI infrastructure and selected healthcare names while taking profits across crypto, genomics and several high-profile technology holdings.

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Ark bought roughly 239,000 CoreWeave shares worth about $24.7 million, making the AI cloud-infrastructure company one of its largest purchases of the week.

The firm also added approximately $7.25 million of Meta Platforms (NASDAQ:META), signaling continued interest in companies positioned to benefit from rising AI spending.

At the same time, Ark cut exposure elsewhere in technology. It sold about $10 million of Advanced Micro Devices (NASDAQ:AMD), $13.1 million of Alphabet (NASDAQ:GOOG), $6.5 million of Shopify (NASDAQ:SHOP), and $5.9 million of Palantir Technologies (NASDAQ:PLTR).

Crypto saw even heavier selling.

Ark unloaded 1.53 million shares of ARKB worth roughly $39.8 million, its biggest sale of the week. It also reduced Circle Internet (NYSE:CRCL) by about $13.5 million and Coinbase Global (NASDAQ:COIN) by $6.8 million, while making a smaller cut to Bullish.

Healthcare was another area where Ark redeployed capital. The firm purchased about $9.3 million of Guardant Health and $8.9 million of Ionis Pharmaceuticals, while selling $21.8 million of 10x Genomics.

Ark also added $5.8 million of AeroVironment in aerospace and defense.

Investor Takeaway

The most notable signal is Ark’s willingness to add aggressively to CoreWeave while trimming crypto and several established technology winners. Investors should watch whether CoreWeave’s revenue growth and AI infrastructure demand justify the added concentration, while monitoring whether Ark’s Bitcoin ETF selling represents simple portfolio rebalancing or a broader reduction in crypto exposure. Continued purchases of CoreWeave and Meta would reinforce the view that Wood currently sees greater near-term upside in AI infrastructure than in some of Ark’s other high-growth holdings.

Source: finance.yahoo.com