From Yahoo Finance: 2025-05-25 16:07:00

Cathie Wood of Ark Investment Management shifted focus to an Asian chipmaker amid optimism around AI infrastructure and semiconductors after easing tariffs between the U.S. and China. Wood’s Ark Innovation ETF underperformed the S&P 500, down 2.67% year-to-date. The ETF has seen a net outflow of $2.45 billion over the past 12 months. Wood’s investment strategy focuses on high-tech companies with potential for industry reshaping.

Ark Innovation ETF has faced volatility, wiping out $7 billion in investor wealth over 10 years. Wood predicts a productivity-led recovery in the U.S., dismissing recession predictions. She anticipates a broader bull market and acceleration in tech stock shifts. Despite optimism, the ETF saw a net outflow of $2.45 billion in the past year.

Wood made a significant bet on Taiwan Semiconductor, buying shares valued at $46.3 million. TSMC is a key supplier for Nvidia and AMD, producing chips for AI applications. TSMC shares are down 4.2% in 2025 but spiked 27% in the past month. The company reported strong first-quarter results and expects continued growth.

TSMC faces risks from geopolitical tensions and trade uncertainties between the U.S. and China. Nvidia’s CEO highlighted the company’s ability to switch suppliers but praised TSMC’s capabilities. Wood and investor Stanley Druckenmiller made bold bets on TSMC, with Druckenmiller increasing his stake by 456.9% in the first quarter.



Read more at Yahoo Finance: Cathie Wood buys $46 million of surging top semiconductor stock