Ark Invest adds $55M in Nvidia, $41M in Broadcom, and $26M in Cerebras Systems, signaling a strategic pivot toward diversified AI hardware suppliers to capture market expansion.
Ark Invest added $55 million in Nvidia shares, reinforcing its position as the firm's largest chip holding. The investment is driven by Nvidia's dominant 106% YoY revenue growth and a strategic diversification of its customer base beyond hyperscalers into industrial and enterprise sectors.
It reduces reliance on hyperscalers, allowing for sustained growth even as those companies develop in-house AI hardware.
Ark Invest purchased $41 million of Broadcom, betting on the company's specialized XPUs which are seeing massive demand. The firm views Broadcom's valuation as a bargain, particularly given the company's target of over $30 in EPS by fiscal 2028.
Broadcom's specialized custom AI chips that are currently seeing high demand from major AI developers.
Ark Invest acquired $26 million in Cerebras Systems, aligning with the firm's thesis that emerging startups will capture market share from incumbents. Despite a lack of scale, the company's wafer-scale engine technology and 74% YoY revenue growth make it a strategic, albeit speculative, addition.
The company is known for its wafer-scale engine, a computing system designed to deliver high tokens-per-second for advanced AI models.
Cathie Wood’s Ark Invest has expanded its artificial intelligence portfolio with $122 million in new purchases across Nvidia, Broadcom, and Cerebras Systems. Despite a challenging year for Ark’s flagship funds, Wood is doubling down on AI infrastructure, betting that robust demand for GPUs and custom chips will sustain long-term growth through 2030.
Ark Invest projects global AI spending to triple to $1.5 trillion by 2030, and Wood is diversifying holdings across GPU leaders and custom chip suppliers to mitigate risks associated with hyperscaler spending.