In nearly a year, "Cathie Wood" has significantly increased her holdings in Taiwan Semiconductor, betting on the AI dividend once again
Kathy Wood's fund has significantly increased its holdings in Taiwan Semiconductor stocks for the first time in nearly a year, marking a shift in its stance. This increase occurred at a time when global economies reached a trade truce, with the ARK Innovation ETF purchasing 123,587 shares of Taiwan Semiconductor ADR and the ARK Next Generation Internet ETF acquiring 74,189 shares. The scale of the increase is the largest since June of last year, and the ADR price has recovered more than half of the decline from its peak in January to its trough in April. Analysts expect the stock price to rise by 11% over the next 12 months
According to Zhitong Finance APP, renowned fund manager "Cathie Wood" has made a significant purchase of Taiwan Semiconductor (TSM.US) stock for the first time in nearly a year, marking a shift in her stance—since the third quarter of last year, most of her funds have continuously reduced their holdings in this chip manufacturing giant.
Data from Ark Investment Management shows that Wood's flagship fund, ARK Innovation ETF, bought 123,587 shares of Taiwan Semiconductor American Depositary Receipts (ADR) on Monday, while ARK Next Generation Internet ETF purchased 74,189 shares. This increase in holdings comes at a time when the world's two largest economies have reached a trade truce to ease tensions. A series of artificial intelligence cooperation agreements between U.S. President Trump and Saudi Arabia and the UAE also bring positive prospects for Taiwan Semiconductor, a core supplier to NVIDIA.
Although Ark Funds made a small increase in Taiwan Semiconductor in February, this purchase scale is the largest since June 18 of last year, equivalent to 87% of the asset management firm's holdings as of the end of March. The ADR price of this industry benchmark company has recovered more than half of the 37% decline from its peak in January to its trough in April. Bloomberg data shows that analysts expect its stock price to rise by 11% over the next 12 months.
Despite Wood's reputation for heavily investing in disruptive technology, her flagship fund has performed poorly in recent years. Even with an 82% cumulative increase over the two years ending in 2024, ARK Innovation ETF is still down about 63% from its historical peak and has underperformed the Nasdaq Composite Index for most of the past five years
