Cathie Wood’s ARK Invest ETFs (exchange-traded funds) made some interesting trade moves on Monday. The ace hedge fund manager sold $109.55 million worth of Circle Internet Group (CRCL) stock and bought shares in chipmaker Advanced Micro Devices (AMD), fintech trading platform Robinhood (HOOD), and semiconductor giant Taiwan Semiconductor Manufacturing (TSM).
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Wood is known for investing in disruptive technology stocks. Her recent stock-picking decisions highlight a strategic shift toward the semiconductor industry and fintech market. We used the TipRanks Stock Comparison Tool to analyze how these stocks perform based on various TipRanks parameters.
Wood Dumps Circle Internet Stock
ARK Invest’s three funds, namely, the Ark Fintech Innovation ETF (ARKF), the Ark Innovation ETF (ARKK), and the Ark Next Generation Internet ETF (ARKW), sold a total of 415,844 shares of Circle Internet yesterday. Wood was clever to accumulate a chunk of the company’s shares at lower prices during its early listing days.
Notably, Circle Internet has seen its stock price reach new highs each day. CRCL stock has skyrocketed nearly 750% above their IPO (Initial Public Offering) price of $31 on June 5. Yesterday, CRCL stock jumped 9.6% on news of its partnership with Fiserv (FI) and PayPal (PYPL) to create stablecoins. Circle, the creator of the USDC stablecoin alongside Coinbase Global (COIN), is well positioned in this sector.
It has been observed that Wood has been offloading Circle stock in consecutive trading sessions recently, seemingly taking advantage of its sky-high price. This could also imply that Wood believes Circle Internet stock is overvalued and is therefore reducing exposure to the company.
Wood Amasses Robinhood Stock
Wood’s ARKK ETF bought 319,640 shares of Robinhood stock yesterday, amounting to $24.4 million. Interestingly, HOOD stock has already rallied nearly 105% so far this year, but Wood’s purchase of the stock displays her optimism about further growth ahead.
Robinhood stock has a Strong Buy consensus rating on TipRanks. This is based on 12 Buys and four Hold ratings. The average Robinhood Markets price target of $68.93 implies 9.7% downside potential from current levels.
ARK is Loading Up AMD Stock
The same three ETFs that sold CRCL stock on June 23 collectively bought an additional 130,256 shares of AMD, totaling $16.9 million. On June 20, Wood had acquired 247,753 shares of AMD across the ARKK, ARKF, and ARKW ETFs, with a total purchase price of $31.4 million.
Considering the combined holdings of AMD stock across ARK Invest ETFs, the company stands as the 12th largest holding in the portfolio, with a 1.98% weight. Wood’s continued purchases of the technology giant reinforce her solid conviction in the future potential of the artificial intelligence (AI) market.
On TipRanks, AMD stock has a Moderate Buy consensus rating based on 20 Buys and nine Hold ratings. Also, the average AMD price target of $132.04 implies 1.9% upside potential from current levels.
Wood Acquires TSMC Stock
Finally, Wood also acquired a total of 65,102 TSM shares through the ARKK and ARKW ETFs, totaling $13.64 million. TSM is a relatively new addition to Wood’s ARK Invest portfolio. The company’s multi-billion-dollar investments in the U.S. and its major role as the largest contract chip manufacturer have positioned it as a formidable player on the global stage.
TSM stock has a Strong Buy consensus rating based on four Buys and one Hold rating on TipRanks. Also, the average Taiwan Semiconductor Manufacturing price target of $220.20 implies 4.7% upside potential from current levels. Year-to-date, TSM stock has gained 7.1%.