Cathie Wood’s funds made their biggest purchase of Taiwan Semiconductor Manufacturing Co. shares in nearly a year, underscoring a change in stance from being mostly sellers of the chipmaker since the third quarter of last year.
Wood’s flagship fund Ark Innovation ETF purchased 123,587 American depositary receipts of Taiwan’s largest company on Monday, while Ark Next Generation Internet ETF bought 74,189 ADRs, Ark Investment Management LLC data compiled by Bloomberg show.
The purchases come as trade tensions eased following a truce between the world’s two largest economies. President Donald Trump’s flurry of artificial intelligence deals with Saudi Arabia and the United Arab Emirates also improves the outlook for the key supplier of Nvidia Corp.
While Ark’s funds made some purchases of TSMC shares in February, the latest buying is the biggest since June 18 and is equivalent to 87% of the asset manager’s stake in the company as of end-March.
The chip bellwether’s ADRs have recouped more than half of the 37% drop from a peak in January through to a trough in April. Analysts are estimating another 11% increase in share price over the next 12 months, according to data compiled by Bloomberg.
While Wood has been widely known for her aggressive bets on disruptive technologies, her flagship fund has struggled in recent years. Even after an 82% surge in the two years through 2024, the ARK Innovation ETF is down about 63% from its peak and has trailed the Nasdaq Composite index for most of the past five years.
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