Cathie Wood Sells Shares in Nvidia and TSMC, Reducing Exposure to AI Semiconductor Boom

Cathie Wood, CEO of Ark Invest, has sold her shares in Taiwan Semiconductor Manufacturing Company (TSMC) for the first time in over two years. As Nvidia is a key client of TSMC, this move shows that Wood has been consistently reducing her exposure to Nvidia, leading the “AI party” in the stock market.

According to Bloomberg, on the 25th (local time), Ark Autonomous Tech & Robotics ETF (ARKQ), one of Ark Invest’s exchange-traded funds (ETF), sold 8,599 American Depositary Receipts (ADR) of TSMC traded on the New York Stock Exchange on the 23rd. The same ETF also sold 2,362 shares of Nvidia on the same day.

Recently, Nvidia has been causing a sensation in the global stock market, leading the AI-related stock rally. With its performance that surpassed Wall Street’s high expectations, Nvidia has followed Microsoft (MS) and Apple to secure the third spot in market capitalization. TSMC, which counts Nvidia as a client, has also sharply risen. Nvidia has jumped 59% this year alone, and TSMC’s ADR has soared by 25%.

However, Wood seems to be reducing her portfolio’s exposure to leading AI semiconductor companies, including Nvidia. Bloomberg pointed out that Wood predicted AI would be a game-changer for the global economy and industries. Still, she sold Nvidia last year and bought shares in much less known companies such as UiPath and Twilio, missing out on the rally led by Nvidia.

Wood had completely disposed of her Nvidia stake in Ark Innovation ETF, the flagship fund of Ark Invest, in early January of last year. The return on this ETF this year is -7.56%. The relatively smaller ARKQ has only 2.71% and 2.48% investment weights in Nvidia and TSMC, respectively, and has been pushed out of the top 10 holdings. The return on this ETF this year is -7.19%.