TLDR
- Cathie Wood’s ARK Invest made a $21 million bet on Chinese tech stocks including Alibaba, Baidu, and Pony AI on September 22
- ARK purchased $16.3 million worth of Alibaba shares across two ETFs as Chinese AI companies attract growing investor interest
- The fund sold $7.7 million in nuclear energy company Oklo shares after the stock hit a new 52-week high
- Wood also trimmed positions in gaming company Roblox ($2.7 million) and e-commerce platform Shopify ($2.67 million)
- The Chinese stock purchases represent a strategic portfolio shift toward AI-focused technology companies
Cathie Wood’s ARK Invest executed a major portfolio restructuring on September 22, investing heavily in Chinese technology companies while reducing exposure to nuclear energy stocks. The moves signal a strategic shift toward artificial intelligence and autonomous vehicle technologies.
ARK’s largest purchase involved Chinese e-commerce giant Alibaba Group, with the fund acquiring 99,090 shares worth $16.3 million. The purchase was split between the ARK Next Generation Internet ETF and ARK Fintech Innovation ETF. Alibaba operates China’s dominant online marketplace and maintains a growing cloud computing division with proprietary large language models.
The ARK Autonomous Technology and Robotics ETF purchased 21,245 shares of search engine leader Baidu for $2.9 million. Baidu controls China’s internet search market and develops AI-powered products including autonomous driving technology through its Apollo platform. The company also operates cloud computing services and video streaming platforms.
ARK’s robotics-focused ETF also acquired 103,002 shares of autonomous vehicle company Pony AI valued at $2.13 million. Pony AI develops self-driving car technology and recently expanded operations into Singapore through a partnership with ComfortDelGro to introduce autonomous public transport vehicles.
Chinese AI Companies Gain Investor Confidence
Both Alibaba and Baidu have strengthened their market positions through artificial intelligence advancements. The companies now manufacture their own AI processing chips, reducing dependence on American semiconductor giant Nvidia. Alibaba recently unveiled a high-performance processor specifically designed to compete with Nvidia in the Chinese technology market.
Chinese technology stocks have shown strong performance in recent months. Alibaba shares have gained over 30% in the past 30 days with year-to-date returns reaching 93.3%. Investor confidence in Chinese AI companies continues growing as these firms rapidly convert artificial intelligence technologies into profitable products and services.
The timing of ARK’s Chinese investments comes as these companies expand their global reach and technological capabilities. Pony AI is advancing robotaxi services across multiple international markets while Baidu continues developing autonomous driving solutions for domestic and international clients.
Nuclear Energy Position Trimmed After Stock Surge
On the selling side, ARK offloaded 54,936 shares of nuclear energy company Oklo worth $7.7 million. The sale occurred on the same day Oklo stock reached a fresh 52-week high of $142.85, driven by increased interest in nuclear power generation and positive analyst sentiment.
Wedbush analyst Daniel Ives raised Oklo’s price target to a new Street-high of $150, citing the company’s nuclear growth strategy and meetings with Washington D.C. policymakers. The analyst upgrade contributed to the stock’s strong performance leading up to ARK’s sale.
Wood also continued reducing the fund’s gaming sector exposure by selling Roblox shares worth $2.71 million. Additionally, ARK trimmed its position in Canadian e-commerce platform Shopify by $2.67 million as part of ongoing portfolio rebalancing efforts.
