This article first appeared on GuruFocus.
Cathie Wood’s ARK Invest used Wednesday’s market weakness to add roughly $41.2 million across Broadcom (NASDAQ:AVGO), Cerebras Systems (NASDAQ:CBRS) and Rocket Lab (NASDAQ:RKLB), increasing exposure to semiconductors, artificial intelligence and space technology while trimming Roblox (NYSE:RBLX). The trades show Wood leaning into high-growth names during a selloff rather than retreating from risk.
Broadcom was ARK’s largest purchase, with the firm buying 55,548 shares worth about $21.1 million across three ETFs after the stock fell roughly 4.6%. The decline followed concerns over rising competition in custom AI chips after Marvell Technology struck a new agreement with Google.
ARK’s timing puts Broadcom’s upcoming fiscal third-quarter earnings on Sept. 2 squarely in focus. Analysts expect adjusted EPS of $3.21, up 89% year over year, with revenue projected to jump more than 80% to $29.25 billion.
Wood also added 78,756 Cerebras shares worth about $17.3 million, following an $8.8 million purchase a day earlier. The AI-chip company recently unveiled its CS-4 system and reported second-quarter cloud revenue growth of 281% year over year. Cerebras also said it has 600 megawatts of data-center capacity under contract.
ARK bought another $2.7 million of Rocket Lab after the shares pulled back. Rocket Lab recently reported record quarterly revenue of $234 million, up 62%, while backlog reached $1.17 billion.
At the same time, ARK sold 501,466 Roblox shares worth about $18.9 million and continued reducing its position in 10X Genomics.
Investors Takeaway
The Broadcom trade carries the clearest near-term catalyst. Its Sept. 2 earnings will test whether AI demand remains strong enough to offset concerns about custom-chip competition.
For Cerebras, investors should watch whether rapid cloud growth translates into improving scale and utilization of contracted capacity. Rocket Lab’s backlog conversion and government-contract momentum will be key to sustaining growth.
The broader signal from ARK’s trades is selective aggression: Wood is using weakness to add to AI and space exposure while harvesting gains elsewhere. Whether that pays off will depend on earnings execution, not simply another rebound in high-growth stocks.
