Key Highlights
- Cathie Wood’s ARK Invest offloaded 7,450 AMD shares valued at approximately $3.4 million on September 1 across two separate funds
- The investment firm accumulated more than 700,000 Rocket Lab shares over two consecutive trading sessions, totaling approximately $44.5 million
- ARK acquired 456,059 shares of Block valued at $38.1 million during a market pullback
- The purchases were partially financed through the sale of approximately $26 million in Palantir stock, alongside positions in Tempus AI and Shopify
- Analysts maintain Strong Buy recommendations for both AMD and Rocket Lab, with price targets of $647 and $110.60 respectively
On September 1, Cathie Wood’s ARK Invest executed multiple portfolio adjustments, divesting certain technology positions while significantly increasing exposure to Rocket Lab and Block.
ARK Reduces Exposure to AMD and Palantir
The investment firm disposed of 7,450 Advanced Micro Devices shares distributed across its ARKQ and ARKX exchange-traded funds. With AMD closing at $459.61, these transactions represented approximately $3.4 million in value.
Despite the sales, ARK maintains a substantial AMD position worth roughly $160 million across its portfolio. The transaction represents a minor trimming rather than a complete divestment.
Following AMD’s impressive performance, ARK appears to be taking profits as part of standard portfolio rebalancing procedures.
Additionally, the firm liquidated approximately $26 million in Palantir holdings, together with stakes in Tempus AI and Shopify, to generate capital for new investments.
Substantial Investments in Rocket Lab and Block
ARK acquired over 504,000 Rocket Lab shares on September 1 distributed among ARKK, ARKQ, and ARKX funds, representing approximately $31.6 million. The previous trading day saw ARKK purchase an additional 200,303 shares valued at roughly $12.9 million. Combined, these two-day transactions exceeded 700,000 shares.
Rocket Lab’s stock price has declined more than 58% from its May peak. Wood’s strategy suggests she’s capitalizing on the downturn.
Recent headwinds have weighed on the aerospace company. NASA selected Jeff Bezos’ Blue Origin for a Mars communications contract valued at up to $700 million, bypassing Rocket Lab. Market participants have also expressed apprehension regarding executive stock disposals and possible setbacks in the Neutron rocket development timeline.
Despite challenges, Rocket Lab’s Q2 revenue surged 62% to a company-record $234 million. The order backlog expanded 137% to $2.36 billion. Management anticipates Neutron’s arrival at the launch facility during Q4 2026.
Simultaneously, ARK accumulated 456,059 Block shares worth $38.1 million during a 1.9% stock decline. This purchase extends a sustained buying pattern that included approximately $21 million in early August and $15.4 million during mid-August.
Block’s second-quarter results showed gross profit reaching $3.17 billion, representing 25% growth, while Cash App expanded 31%. Adjusted operating income achieved a record $864 million.
The company elevated its 2026 gross profit projection to $12.51 billion and currently anticipates adjusted earnings per share of $4.02, marking a 70% year-over-year increase.
Analyst consensus ratings indicate Strong Buy recommendations for both AMD and Rocket Lab. AMD carries an average price objective of $647.19, implying 41% appreciation potential. Rocket Lab’s consensus target stands at $110.60, indicating possible 77% gains within a one-year timeframe.
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