As Chip Stocks Tumble, Cathie Wood's ARK Invest Heavily Buys TSMC and Adds to SpaceX Position

Cathie Wood's ARK Invest showcased its core investment strategy on Wednesday (29th) amid market volatility, significantly increasing positions in SpaceX (SPCX-US) and TSMC (TSM-US) (2330-TW) at low levels, while reducing holdings in large internet platforms like Amazon (AMZN-US) and Alphabet (GOOGL-US).

This portfolio adjustment occurred as multiple companies approach key catalysts, reflecting ARK Invest's continued commitment to the theme of 'disruptive innovation'.

Continued Buying of SpaceX and TSMC at Low Levels

ARK Invest demonstrated strong conviction in SpaceX, the company led by Elon Musk. On Wednesday, ARK purchased approximately $14.5 million worth of SpaceX stock at around $112.55 per share through its ARK Innovation ETF (ARKK-US), ARK Autonomous Technology & Robotics ETF (ARKQ-US), ARK Next Generation Internet ETF (ARKW-US), and ARK Space Exploration & Innovation ETF (ARKX-US).

This follows Wood's prior purchase of $12.2 million in SpaceX shares on Tuesday. Despite SpaceX currently facing short positions totaling around $26 billion—approximately 35% of its float—ARK continues to 'buy the dip' during the post-IPO correction phase.

Meanwhile, TSMC was also a key target for增持 on the day. Despite recent weakness in chip stocks and a nearly 7% decline in TSMC's share price over the past month, ARK invested $20.1 million to increase its position.

Although TSMC faces pressure from sector rotation within tech, its long-term technical indicators remain intact. Analysts broadly maintain a positive outlook, and its growth score ranks in the top 85% across the market.

Reducing Exposure to Large Internet Platforms to Optimize Portfolio

While buying innovative leaders, ARK Invest chose to reduce its position in Amazon ahead of its earnings announcement window. ARKK sold 4,902 shares of Amazon, valued at approximately $1.1 million. Additionally, ARK reduced its holdings in Alphabet by about $1.1 million.

This series of moves extends ARK's consistent portfolio management approach: reducing exposure to large, traditional internet platforms and reallocating capital toward more focused innovation themes—especially as Alphabet also faces high short interest and competitive pressures in ad growth.

Other Trading Activities

In addition to the above core moves, ARK purchased approximately $540,000 worth of Tesla (TSLA-US) shares on the day and added to positions in Kratos Defense and BWX Technologies. On the sell side, ARK reduced positions in volatile growth stocks such as Robinhood, Shopify, Block, and Roblox.