Optimistic about China's AI opportunities! "Wooden Sister" significantly increases holdings in Alibaba and Baidu

According to the Zhitong Finance APP, Kathy Wood, known as "Wood Sister" and CEO of Ark Invest, recently pointed out in an interview that the artificial intelligence (AI) field is currently dominated by the "Big Four," namely OpenAI, Anthropic, Elon Musk's xAI, and Google's (GOOGL.US) Gemini.

She added that the competition among these four companies is becoming increasingly fierce. "In the field of large language models (LLM), the number of truly competitive companies has decreased."

Against this backdrop, Wood is doubling down on investments in AI, cloud computing, and the next generation of the internet, particularly focusing on Chinese tech stocks.

Here are the main buying and selling operations of her actively managed funds last week:

Flagship Fund Innovation ETF-ARK (ARKK.US):

Reduction operations: Continued to reduce holdings in streaming device manufacturer Roku (ROKU.US), selling about 68,000 shares worth over $6.5 million. In terms of cumulative reduction, Ark Invest is gradually lowering its exposure to this American TV streaming audio and video player manufacturer.

Reduced holdings in medical technology company Tempus AI (TEM.US) by over 107,000 shares, worth more than $8 million; reduced AMD (AMD.US) by about 138,000 shares, worth about $22 million; and simultaneously reduced holdings in gaming platform Roblox (RBLX.US) by over 38,000 shares, worth $5 million.

Increase operations: Last week, increased holdings in clinical-stage gene editing company Intellia Therapeutics (NTLA.US) by about 120,000 shares, worth about $1.96 million. During the same period, the company's stock price rose by about 5%.

For the first time since 2021, increased holdings in Alibaba (BABA.US) by buying about 63,000 shares, worth about $11 million; simultaneously entered the Chinese search engine market by purchasing Baidu (BIDU.US) about 82,000 shares, also worth approximately $11 million.

Notably, the Innovation ETF-ARK has risen nearly 45% this year, far exceeding the S&P 500 index's 12.9% increase during the same period. The re-establishment of positions in Alibaba and Baidu signals that Ark Invest views the Chinese market as a new opportunity, particularly focusing on AI, cloud computing, and the next generation of the internet.

Other fund movements:

ARK Next Generation Internet ETF (ARKW.US): Increased holdings in Alibaba by about 42,000 shares, worth over $8 million; simultaneously reduced holdings in Shopify (SHOP.US) and Roblox.

Genomic Evolution ETF-ARK (ARKG.US): Last week, continuously increased holdings in Arcturus Therapeutics (ARCT.US) for several days, totaling about 65,000 shares purchased (previous week had already increased by about 136,000 shares). The stock continued to rise, with an increase of 8% last week. The fund also increased holdings in Intellia Therapeutics by over 17,000 shares ARK Fintech Innovation ETF (ARKF.US): Increased holdings in Alibaba by approximately 50,000 shares, valued at over $8 million.

ARK Autonomous Technology & Robotics ETF (ARKQ.US): Purchased over 21,000 shares of Baidu, 106,000 shares of the Chinese autonomous driving technology company XPeng (PONY.US) (valued at $2.2 million), and approximately 45,000 shares of Ares Acquisition Corp. II (AACT.US). At the same time, continued to reduce holdings in defense company Kratos Defense (KTOS.US) by approximately 71,000 shares and completely sold off holdings in nuclear technology company Oklo (OKLO.US) by approximately 55,000 shares (valued at $6 million), the latter's stock price fell about 16% last week