Cathie Wood sells again to Nvidia Frenzy and cuts TSMC

Cathie Wood sells again to Nvidia Frenzy and cuts TSMC stake

(Bloomberg) — Cathie Wood sold shares of Taiwan Semiconductor Manufacturing Corp. for the first time in more than two years. adding to efforts to reduce exposure to the chipmaker's main customer, Nvidia Corp.

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The Ark Autonomous Technology and Robotics ETF sold 8,599 American depositary receipts of Taiwan's largest company on Friday in its first share sale since late 2021, data from Ark Investment Management LLC compiled by Bloomberg show. The same ETF sold 2,362 Nvidia shares on the same day.

Wood is reducing his holdings in the global chip bellwether as artificial intelligence hype grows and Nvidia's stellar profits push global markets to new heights. Nvidia is up 59% year-to-date and TSMC's ADRs are up 25%.

Ark funds had bought shares of TSMC several times in 2023 and still hold a total of about 221,848 shares of the company, according to data compiled by Bloomberg. Shares of Nvidia rose 1.3% in premarket US trading and TSMC's ADRs rose 0.6%.

Wood was one of the most prominent voices predicting that AI would be groundbreaking. Still, it sold Nvidia shares last year, betting on the growth potential of lesser-known software companies like UiPath Inc. and Twilio Inc.

The autonomous ETF, which focuses on companies relevant to industrial innovation, missed the rally that gave Nvidia a valuation of nearly $2 trillion and overtook Inc. and Alphabet Inc. Both TSMC and Nvidia have dropped out of the fund's top 10 holdings.

– With support from Subrat Patnaik and David Watkins.

(Updates to add premarket stock move in fourth paragraph.)

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