(Bloomberg) — Cathie Wood sold shares of Taiwan Semiconductor Manufacturing Corp. for the first time in more than two years. adding to efforts to reduce exposure to the chipmaker's main customer, Nvidia Corp.
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The Ark Autonomous Technology and Robotics ETF sold 8,599 American depositary receipts of Taiwan's largest company on Friday in its first share sale since late 2021, data from Ark Investment Management LLC compiled by Bloomberg show. The same ETF sold 2,362 Nvidia shares on the same day.
Wood is reducing his stake in the global chip bellwether at a time when the artificial intelligence frenzy is heating up and Nvidia's stellar profits are driving global markets to new heights. Nvidia is up 59% year-to-date and TSMC's ADRs are up 25%.
Ark funds had bought shares of TSMC several times in 2023 and collectively still hold about 221,848 shares of the company, according to data compiled by Bloomberg.
Wood was one of the most prominent voices predicting that AI would be groundbreaking. Still, it sold Nvidia shares last year, betting on the growth potential of lesser-known software companies like UiPath Inc. and Twilio Inc.
The autonomous ETF, which focuses on companies relevant to industrial innovation, missed the rally that gave Nvidia a valuation of nearly $2 trillion and overtook Amazon.com Inc. and Alphabet Inc. Both TSMC and Nvidia have dropped out of the fund's top 10 holdings.
(Updates with context on holdings in fourth and sixth paragraphs.)
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