TSM Stock Alert! Cathie Wood Bets Millions on this Non-Nvidia Chip Stock

Cathie Wood’s Ark Invest funds are betting millions on Taiwan Semiconductor Manufacturing stock (TSM), marking a strategic shift toward this non-Nvidia (NVDA) chip stock. Easing U.S.-China trade tensions could be one of the major driving forces behind the hedge fund manager’s decision. According to trades made on May 20, the Ark Innovation ETF (ARKK) bought 27,099 shares of the semiconductor giant, while the Ark Next Generation Internet ETF (ARKW) added 16,172 TSM stock.

The total purchase amounted to nearly $8.4 million, following the acquisition of 197,776 shares of TSM stock (worth $38.4 million) on Monday. Among Wood’s other trades yesterday were the purchase of 84,478 shares of Nextdoor Holdings (KIND) and the addition of 839 shares of Blade Air Mobility (BLDE). At the same time, Ark Invest continued its selling spree of UiPath (PATH) stock, selling another 1,300 shares yesterday.

Cathie’s Bold Bet on Taiwan Semi

Wood’s inclination toward TSM is a stark reversal from the sell-off of TSM shares that began in Q3 of last year. Notably, TSM has been making waves in the semiconductor sector. It has partnered with Qualcomm (QCOM) and other chip designers, strengthening the artificial intelligence (AI) supply chain across borders. TSM is one of the largest suppliers to U.S. based firms, including Nvidia, Apple (AAPL), and AMD (AMD).

Is TSM a Good Stock to Buy?

On TipRanks, TSM stock commands a Strong Buy consensus rating based on seven Buys and one Hold rating. Also, the average Taiwan Semiconductor Manufacturing price target of $219.43 implies 13.4% upside potential from current levels. Meanwhile, TSM stock has lost 1.7% year-to-date.

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Wood Is a Big Believer in Nvidia Stock

Wood has also been accumulating Nvidia stock this year, leveraging the dip in its stock price amid tariff uncertainty. During April and first half of May, Wood’s Ark ETFs loaded up Nvidia stock worth millions of dollars. As of May 20, NVDA is the 15^th largest holding in the Ark Autonomous Tech & Robotics ETF (ARKQ), with a 2.06% allocation. Similarly, Nvidia is the 29^th largest holding in the ARKW fund, with a 1.13% allocation, and the 31^st largest holding in the ARKK portfolio, with a 0.89% allocation.  

What Is the Price Target for Nvidia?

On TipRanks, the average Nvidia price target of $164.51 implies 22.4% upside potential from current levels. Additionally, NVDA stock has a Strong Buy consensus rating based on 34 Buys, five Holds, and one Sell rating. In the past year, NVDA stock has gained over 40%.

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