Cathie Wood's Ark Invest executed some eye-catching trades on Wednesday, shuffling tens of millions of dollars between tech heavyweights while navigating geopolitical headwinds and market optimism in equal measure.

Trimming the Tesla Position

The most notable move: Ark offloaded 86,139 shares of Tesla Inc. (TSLA) through the ARK Innovation ETF (ARKK). At Tesla's Wednesday closing price of $439.20, the sale clocked in at roughly $37.8 million.

The timing is interesting. Just a day earlier, Wedbush Securities analyst Dan Ives doubled down on his Tesla thesis, projecting that Elon Musk's company will dominate 80% of the robotaxi market by the end of 2026. Ives isn't shy about his conviction either, maintaining a base case price target of $600 and a bull case of $800 for Tesla stock. He's calling 2026 a pivotal year for Tesla's autonomous driving and robotics ambitions.

So why is Wood selling? Hard to say definitively, but portfolio rebalancing is part of the job. Sometimes you trim winners to deploy capital elsewhere.

Doubling Down on Broadcom

And deploy she did. Ark purchased 143,089 shares of Broadcom Inc. (AVGO) across the ARK Next Generation Internet ETF (ARKW) and ARKK. With Broadcom closing Wednesday at $339.89, the buy totaled approximately $48.6 million.

This is a bold call considering recent developments. Beijing has reportedly instructed Chinese companies to phase out cybersecurity software from several U.S. firms, including Broadcom-owned VMware. It's a security directive that's raised concerns about data sovereignty and has put pressure on Broadcom's stock.

Wood appears to be looking past the near-term China risk, betting on Broadcom's broader AI chip and infrastructure story.

Saying Goodbye to TSMC

Meanwhile, Ark sold 19,310 shares of Taiwan Semiconductor Manufacturing Co., Ltd. (TSM) through ARKW. The semiconductor giant's stock closed at $327.11, making the transaction worth about $6.3 million.

The sale comes as TSMC faces capacity constraints that have it telling Nvidia and Broadcom it simply can't meet their production demands. It's a textbook supply bottleneck in the AI chip market, where demand continues to outstrip even the world's most advanced manufacturing capabilities.

Other Notable Moves

Beyond the headline trades, Ark made several smaller adjustments:

• Teradyne Inc. (TER): Sold 3,834 shares through ARKK.
• Natera Inc. (NTRA): Offloaded 4,756 shares via ARKK.
• Kodiak AI Inc. (KDK): Purchased 72,320 shares through ARKQ.

For what it's worth, Tesla stock currently ranks in the 4th percentile for value according to market data rankings, suggesting it's trading at the pricier end of the spectrum by traditional metrics. But then again, Tesla investors haven't been particularly concerned with traditional valuation metrics for quite some time now.