Key Takeaways
- On August 28, ARK Invest offloaded 156,286 shares of AMD valued at $74.5 million
- The firm acquired 243,707 shares of Nvidia, valued between $53-55.6 million, capitalizing on post-earnings price weakness
- ARK simultaneously purchased 55,131 shares of Broadcom worth $20.5 million in anticipation of September 3 earnings
- Nvidia’s Q2 revenue reached $96.2 billion, representing a 106% year-over-year increase, with Q3 outlook at $108 billion
- Over the trailing twelve months, the Ark Innovation ETF has experienced net outflows totaling $2.09 billion
On August 28, Cathie Wood’s ARK Invest executed a significant portfolio rebalancing, divesting $74.5 million in Advanced Micro Devices holdings while simultaneously acquiring positions in Nvidia and Broadcom.
The firm liquidated 156,286 shares of AMD distributed across its various exchange-traded funds. This transaction came on the heels of an earlier AMD divestment the previous trading day, when ARK disposed of approximately 37,977 shares valued at roughly $18.26 million. Despite these sales, AMD’s stock performance remains strong with a 117.4% gain year to date.
Advanced Micro Devices, Inc., AMD
ARK Capitalizes on Nvidia Post-Earnings Pullback
ARK accumulated 243,707 Nvidia shares, representing approximately $53 million in value at the August 28 closing price of $217.55. The strategic purchase occurred following a volatile trading session where Nvidia initially surged nearly 9% on robust quarterly results before retreating 4.5%.
The graphics chip giant disclosed fiscal Q2 revenue of $96.2 billion, marking a 106% year-over-year expansion. Adjusted earnings per share registered at $2.22, surpassing analyst expectations of $2.10.
Management projected approximately $108 billion in Q3 revenue, exceeding the Street consensus estimate of $104.19 billion. Nvidia’s Chief Financial Officer indicated expectations for roughly 70% revenue growth by fiscal 2028.
Following the quarterly disclosure, multiple Wall Street analysts elevated their price objectives. JPMorgan increased its target from $280 to $320. Bank of America maintained its buy recommendation with a $350 price target, designating Nvidia among its top selections. Melius Research established the highest Street target at $420.
Year to date, Nvidia shares have appreciated approximately 16.6%.
Strategic Broadcom Accumulation Precedes Quarterly Report
ARK additionally acquired 55,131 shares of Broadcom valued at $20.5 million. This transaction represented a continuation of earlier Broadcom accumulation from the same week.
Broadcom is scheduled to release its fiscal Q3 financial results following market close on September 3. Analyst consensus anticipates revenue of $29.24 billion, reflecting an 83.3% year-over-year increase, alongside adjusted earnings per share of $3.21.
Benchmark analyst Cody Acree maintained his buy recommendation with a $545 price objective for Broadcom. He observed that the stock currently trades at the lower end of its artificial intelligence peer group based on valuation metrics and characterized it as an improved opportunity after shares declined 13% following Q2 results.
Broadcom’s stock has gained 6.6% year to date.
Wood continues to express bullish views regarding artificial intelligence’s impact on corporate profitability and operational efficiency. She has consistently emphasized that organizations embracing AI technologies will distinguish themselves from competitors who resist adoption.
Notwithstanding this optimistic outlook, the Ark Innovation ETF has generated a five-year annualized return of -6.91% through August 28, contrasting sharply with the S&P 500’s 11.33% performance. The fund has witnessed approximately $2.09 billion in net outflows during the past twelve months.
The flagship Ark Innovation ETF has advanced 9.97% year to date, underperforming the S&P 500’s 12.65% appreciation over the identical timeframe.
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