Cathie Wood sells to Nvidia Frenzy again, reduces TSMC stake

(Bloomberg) — Cathie Wood sold shares in Taiwan Semiconductor Manufacturing Co. for the first time in more than two years, adding to moves to cut exposure in Nvidia Corp., the chipmaker's main client.

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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 the first stock sale since the end of 2021, Ark Investment Management LLC data compiled by Bloomberg showed. The same ETF sold 2,362 shares of Nvidia stock on the same day.

Wood is trimming her holdings in the world's leading chip companies as the AI ​​craze intensifies, with Nvidia's stellar earnings pushing global markets to new heights. Nvidia is up 59% year to date and TSMC's ADRs are up 25%.

Ark funds bought shares in TSMC several times in 2023, and collectively still own about 221,848 shares in the company, according to data compiled by Bloomberg. Nvidia shares rose 1.3% in US pre-market trading and TSMC shares rose 0.6%.

Wood was one of the most prominent voices predicting that artificial intelligence would be a game-changer. Despite this, it has sold Nvidia shares throughout the past year, betting on the growth potential of lesser-known software companies such as UiPath Inc. and Twilio Inc.

The independent ETF, which focuses on companies related to industrial innovation, missed the rally that gave Nvidia a valuation of nearly $2 trillion, surpassing Amazon.com Inc. and Alphabet Inc. Both TSMC and Nvidia have withdrawn from the top of the fund. 10 collectibles.

-With assistance from Subrat Patnaik and David Watkins.

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(Updates to add pre-market stock movement in fourth paragraph.)

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