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Cathie Wood Goes Big on Google and Meta as AI Chip Dynamics Reshape the Market

MarketDash Editorial Team
12 days ago
Ark Invest made waves with a $56.4 million Alphabet purchase and fresh bets on Meta, while dumping Palantir and AMD shares. The trades reflect shifting dynamics in the AI chip landscape as Meta reportedly explores Google's processors as alternatives to Nvidia's dominance.

Cathie Wood's Ark Invest orchestrated a series of notable trades on Tuesday that signal some interesting shifts in how the firm views the evolving AI chip landscape. The star of the show was a massive bet on Alphabet Inc. (GOOG), paired with fresh investments in Meta Platforms Inc. (META) while simultaneously offloading positions in Palantir Technologies Inc. (PLTR) and Advanced Micro Devices Inc. (AMD).

The Big Google Play

Ark picked up a substantial 174,293 shares of Alphabet (GOOG) across four of its funds: ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), ARK Autonomous Technology & Robotics ETF (ARKQ), and ARK Space And Defense Innovation ETF (ARKX). The purchase totaled approximately $56.4 million, based on Alphabet's Class C shares closing at $323.64.

The timing is interesting. Alphabet shares climbed sharply as the company edged closer to a $4 trillion valuation, fueled by speculation around Meta potentially adopting Google's AI chips and ongoing enthusiasm for Alphabet's Gemini AI model. It's worth noting that despite Alphabet's gains, AI-focused ETFs actually declined on the day, weighed down by weakness in Nvidia, which typically drives the sector.

Adding Meta to the Mix

Ark also scooped up 33,837 shares of Meta Platforms (META) across three funds: ARK Blockchain And Fintech Innovation ETF (ARKF), ARKK, and ARKW. The purchases came to approximately $21.5 million, with Meta's stock closing at $636.22.

This move comes at a curious moment for Meta. U.S. Senators have called for investigations into the company's alleged profits from fraudulent advertising. But investors didn't seem too bothered by that controversy. Meta's stock jumped 3.78% on Tuesday, driven primarily by speculation about a potential collaboration with Google on AI chip development. Sometimes the market cares about regulatory concerns, and sometimes it doesn't.

Betting on CoreWeave Despite Market Concerns

Through its ARKK and ARKW funds, Ark purchased 396,198 shares of CoreWeave Inc. (CRWV), valued at around $28.2 million based on a closing price of $71.29.

CoreWeave's stock actually fell 3.14% amid worries about the company's heavy reliance on Nvidia GPUs, especially as Meta explores alternatives with Google's TPUs (Tensor Processing Units). Ark's willingness to buy into this weakness suggests the firm sees long-term potential in CoreWeave despite the near-term market jitters about shifting chip preferences.

Dumping AMD Amid Chip Dynamics Shift

On the selling side, Ark offloaded 106,651 shares of AMD (AMD) across its ARKF, ARKK, and ARKW funds. The sale totaled approximately $21.98 million, based on AMD's closing price of $206.13.

AMD shares declined 4.15% on Tuesday, influenced by the same reports about Meta potentially pivoting toward Google's AI chips. The move represents a challenge not just to Nvidia's dominance in the semiconductor space, but also to AMD's efforts to capture more AI chip market share. When the landscape shifts, sometimes you get caught in the crossfire.

Palantir Exit Continues

Ark sold 354,955 shares of Palantir (PLTR) through four funds: ARKK, ARKQ, ARKW, and ARKX. The sale came to approximately $58.05 million based on Palantir's closing price of $163.55.

This represents Ark's largest single trade by dollar value on Tuesday. The sale comes as Palantir's stock rebounds from a recent pullback, helped by a broader tech sector rally driven by falling yields and optimistic Federal Reserve rate-cut expectations. Despite concerns about insider selling and potential AI bubble warnings, Palantir's strong third-quarter results and positive guidance have kept investors engaged. Ark appears to be taking profits while sentiment remains positive.

Doubling Down on Block

Ark made a significant purchase of 212,538 shares of Block Inc. (XYZ) through ARKK and ARKF, valued at approximately $13.5 million at the closing price of $63.69.

Block received a boost from positive guidance delivered at its recent Investor Day event. The company is focusing its energy on its Cash App platform, AI initiatives, and share buyback programs, positioning itself for what management believes will be sustained future growth.

Staying Committed to Crypto

Even as cryptocurrency markets stumble, Ark continues to add exposure. The ARKF and ARKW funds acquired 96,200 shares of ARK 21Shares Bitcoin ETF (ARKB), valued at approximately $2.8 million at the closing price of $29.01.

This purchase aligns with a significant dip in Bitcoin (BTC) prices and reflects Ark's confidence in the long-term trajectory of digital assets. On Monday, Ark had already purchased $1.08 million worth of ARKB shares. Bitcoin has collapsed over 23% over the last 30 days, and on a year-to-date basis, the leading cryptocurrency is down more than 6%. Buying the dip, as they say.

Circle Gets More Attention

The ARKK fund purchased 108,450 shares of Circle Internet Group Inc. (CRCL), valued at approximately $7.60 million at the closing price of $70.11.

This acquisition fits into Ark's broader strategy of investing in emerging technologies and digital finance. Circle (CRCL), the issuer of the USDC stablecoin (USDC), continues to expand its influence in the cryptocurrency ecosystem. Multiple analysts have upgraded or reaffirmed bullish ratings on Circle recently, with Baird raising it to Outperform and Bernstein maintaining an Outperform rating.

The company's third-quarter performance was impressive: $740 million in revenue, $166 million in adjusted EBITDA, and $214 million in net income, representing a 202% increase year-over-year. Ark has been on something of a buying spree for Circle stock, purchasing $15.06 million worth of shares just last week.

Other Notable Moves

Beyond the headline trades, Ark executed several other transactions worth noting:

  • Sold 397,713 shares of GitLab Inc. (GTLB) via ARKK and ARKW
  • Sold 216,331 shares of Exact Sciences Corp. (EXAS) across ARKG and ARKK
  • Purchased 15,197 shares of Coinbase Global Inc. (COIN) through ARKK

The Quality Angle

It's worth noting that Alphabet's (GOOG) Class C stock ranks in the 88th percentile for Quality according to market data rankings, positioning it favorably among other Magnificent 7 technology names.

Taken together, Tuesday's trades paint a picture of a firm repositioning around the evolving AI chip landscape while maintaining conviction in cryptocurrency despite brutal near-term price action. Whether these bets pay off depends largely on how the AI chip dynamics actually play out and whether the crypto winter eventually thaws.

Back to News

Cathie Wood Goes Big on Google and Meta as AI Chip Dynamics Reshape the Market

MarketDash Editorial Team
12 days ago
Ark Invest made waves with a $56.4 million Alphabet purchase and fresh bets on Meta, while dumping Palantir and AMD shares. The trades reflect shifting dynamics in the AI chip landscape as Meta reportedly explores Google's processors as alternatives to Nvidia's dominance.

Cathie Wood's Ark Invest orchestrated a series of notable trades on Tuesday that signal some interesting shifts in how the firm views the evolving AI chip landscape. The star of the show was a massive bet on Alphabet Inc. (GOOG), paired with fresh investments in Meta Platforms Inc. (META) while simultaneously offloading positions in Palantir Technologies Inc. (PLTR) and Advanced Micro Devices Inc. (AMD).

The Big Google Play

Ark picked up a substantial 174,293 shares of Alphabet (GOOG) across four of its funds: ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), ARK Autonomous Technology & Robotics ETF (ARKQ), and ARK Space And Defense Innovation ETF (ARKX). The purchase totaled approximately $56.4 million, based on Alphabet's Class C shares closing at $323.64.

The timing is interesting. Alphabet shares climbed sharply as the company edged closer to a $4 trillion valuation, fueled by speculation around Meta potentially adopting Google's AI chips and ongoing enthusiasm for Alphabet's Gemini AI model. It's worth noting that despite Alphabet's gains, AI-focused ETFs actually declined on the day, weighed down by weakness in Nvidia, which typically drives the sector.

Adding Meta to the Mix

Ark also scooped up 33,837 shares of Meta Platforms (META) across three funds: ARK Blockchain And Fintech Innovation ETF (ARKF), ARKK, and ARKW. The purchases came to approximately $21.5 million, with Meta's stock closing at $636.22.

This move comes at a curious moment for Meta. U.S. Senators have called for investigations into the company's alleged profits from fraudulent advertising. But investors didn't seem too bothered by that controversy. Meta's stock jumped 3.78% on Tuesday, driven primarily by speculation about a potential collaboration with Google on AI chip development. Sometimes the market cares about regulatory concerns, and sometimes it doesn't.

Betting on CoreWeave Despite Market Concerns

Through its ARKK and ARKW funds, Ark purchased 396,198 shares of CoreWeave Inc. (CRWV), valued at around $28.2 million based on a closing price of $71.29.

CoreWeave's stock actually fell 3.14% amid worries about the company's heavy reliance on Nvidia GPUs, especially as Meta explores alternatives with Google's TPUs (Tensor Processing Units). Ark's willingness to buy into this weakness suggests the firm sees long-term potential in CoreWeave despite the near-term market jitters about shifting chip preferences.

Dumping AMD Amid Chip Dynamics Shift

On the selling side, Ark offloaded 106,651 shares of AMD (AMD) across its ARKF, ARKK, and ARKW funds. The sale totaled approximately $21.98 million, based on AMD's closing price of $206.13.

AMD shares declined 4.15% on Tuesday, influenced by the same reports about Meta potentially pivoting toward Google's AI chips. The move represents a challenge not just to Nvidia's dominance in the semiconductor space, but also to AMD's efforts to capture more AI chip market share. When the landscape shifts, sometimes you get caught in the crossfire.

Palantir Exit Continues

Ark sold 354,955 shares of Palantir (PLTR) through four funds: ARKK, ARKQ, ARKW, and ARKX. The sale came to approximately $58.05 million based on Palantir's closing price of $163.55.

This represents Ark's largest single trade by dollar value on Tuesday. The sale comes as Palantir's stock rebounds from a recent pullback, helped by a broader tech sector rally driven by falling yields and optimistic Federal Reserve rate-cut expectations. Despite concerns about insider selling and potential AI bubble warnings, Palantir's strong third-quarter results and positive guidance have kept investors engaged. Ark appears to be taking profits while sentiment remains positive.

Doubling Down on Block

Ark made a significant purchase of 212,538 shares of Block Inc. (XYZ) through ARKK and ARKF, valued at approximately $13.5 million at the closing price of $63.69.

Block received a boost from positive guidance delivered at its recent Investor Day event. The company is focusing its energy on its Cash App platform, AI initiatives, and share buyback programs, positioning itself for what management believes will be sustained future growth.

Staying Committed to Crypto

Even as cryptocurrency markets stumble, Ark continues to add exposure. The ARKF and ARKW funds acquired 96,200 shares of ARK 21Shares Bitcoin ETF (ARKB), valued at approximately $2.8 million at the closing price of $29.01.

This purchase aligns with a significant dip in Bitcoin (BTC) prices and reflects Ark's confidence in the long-term trajectory of digital assets. On Monday, Ark had already purchased $1.08 million worth of ARKB shares. Bitcoin has collapsed over 23% over the last 30 days, and on a year-to-date basis, the leading cryptocurrency is down more than 6%. Buying the dip, as they say.

Circle Gets More Attention

The ARKK fund purchased 108,450 shares of Circle Internet Group Inc. (CRCL), valued at approximately $7.60 million at the closing price of $70.11.

This acquisition fits into Ark's broader strategy of investing in emerging technologies and digital finance. Circle (CRCL), the issuer of the USDC stablecoin (USDC), continues to expand its influence in the cryptocurrency ecosystem. Multiple analysts have upgraded or reaffirmed bullish ratings on Circle recently, with Baird raising it to Outperform and Bernstein maintaining an Outperform rating.

The company's third-quarter performance was impressive: $740 million in revenue, $166 million in adjusted EBITDA, and $214 million in net income, representing a 202% increase year-over-year. Ark has been on something of a buying spree for Circle stock, purchasing $15.06 million worth of shares just last week.

Other Notable Moves

Beyond the headline trades, Ark executed several other transactions worth noting:

  • Sold 397,713 shares of GitLab Inc. (GTLB) via ARKK and ARKW
  • Sold 216,331 shares of Exact Sciences Corp. (EXAS) across ARKG and ARKK
  • Purchased 15,197 shares of Coinbase Global Inc. (COIN) through ARKK

The Quality Angle

It's worth noting that Alphabet's (GOOG) Class C stock ranks in the 88th percentile for Quality according to market data rankings, positioning it favorably among other Magnificent 7 technology names.

Taken together, Tuesday's trades paint a picture of a firm repositioning around the evolving AI chip landscape while maintaining conviction in cryptocurrency despite brutal near-term price action. Whether these bets pay off depends largely on how the AI chip dynamics actually play out and whether the crypto winter eventually thaws.

    Cathie Wood Goes Big on Google and Meta as AI Chip Dynamics Reshape the Market - MarketDash News