Cathie Wood's ARK Invest Buys $20.5 Million of Broadcom, Sells $18.2 Million of AMD Ahead of Q3 Earnings
Key Takeaways
- •ARK Invest bought 57,705 Broadcom shares across multiple ETFs for about $20.5 million on Wednesday, Aug. 26.
- •The firm sold 37,977 AMD shares across four ETFs for roughly $18.2 million, marking a second AMD sale this week.
- •Broadcom is scheduled to report fiscal third-quarter earnings on Sept. 3, and analysts expect revenue of $29.24 billion and adjusted EPS of $3.21.
- •Broadcom has forecast AI semiconductor revenue of $16 billion for the quarter, more than double the level from a year earlier.
- •ARK also added positions in Cerebras Systems and Cloudflare while trimming several other holdings, reinforcing its focus on AI-linked companies.
Cathie Wood's ARK Invest made a major move on Wednesday, August 26, pouring $20.5 million into Broadcom while offloading $18.2 million worth of Advanced Micro Devices stock, reshaping its semiconductor exposure just days before Broadcom's fiscal third-quarter earnings report.
The firm purchased 57,705 shares of Broadcom Inc. (AVGO) across multiple ETFs. The buy came days before the company is set to report its fiscal third-quarter earnings on September 3, a release that could give investors a fresh read on demand for AI-related chips and networking gear in a sector that has become a key market focus.
Broadcom's Q3 Earnings in Focus
Wall Street expects Broadcom's third-quarter revenue to hit $29.24 billion, an increase of 83.3% from the same period last year. Adjusted earnings per share are forecast at $3.21, compared with $1.69 a year ago.
Investors will be paying close attention to AI semiconductor revenue. Broadcom has forecast that the segment will reach $16 billion in the quarter, more than double the year-ago figure.
RBC Capital analyst Srini Pajjuri expects a small earnings beat and higher guidance, pointing to strong growth in Broadcom's networking business as a key driver. Pajjuri did flag some competition in the TPU market from MediaTek, as well as a supply deal between Google and Marvell. But he believes Broadcom's long-term contracts and growing TPU adoption should support the company over the next few years.
On TipRanks, Broadcom holds a Strong Buy consensus based on 24 Buy ratings and three Holds. The average price target of $509.96 suggests 43.4% upside from current levels. Year-to-date, the stock is up 3.1%.
ARK Trims AMD for Second Time This Week
At the same time it was buying Broadcom, ARK was cutting its exposure to Advanced Micro Devices. The firm sold 37,977 AMD shares across four ETFs, bringing in roughly $18.2 million.
The sale was not an isolated move. ARK also sold AMD shares earlier in the week, pointing to a deliberate reduction in the position. The shift suggests ARK is rotating within the chip sector, favoring Broadcom's AI exposure over AMD.
Other Key Trades on Wednesday
Beyond Broadcom, ARK picked up 69,585 shares of Cerebras Systems for about $12.8 million and 47,794 Cloudflare shares for around $13.3 million — a combined $26 million in new positions.
On the sell side, ARK offloaded 181,919 Tempus AI shares for $12.5 million and 53,280 Twist Bioscience shares for $8.1 million. The firm also sold 14,339 CrowdStrike shares for $2.7 million and 25,009 Robinhood Markets shares for $2.8 million. Smaller sales included 14,965 Roblox shares for $585,430 and 25,000 Brera Holdings shares for $105,500.
The trades came on the same day Nvidia reported its Q2 FY27 results, posting adjusted earnings per share of $2.22 against an estimate of $2.09, with revenue up 106% year-over-year to $96.2 billion.
Taken together, Wednesday's trades reinforce ARK's focus on AI-linked companies, with Broadcom, Cerebras Systems, and Cloudflare all added to the firm's holdings.
Source: CoinCentral
