Cathy Wood recently made a big change to her portfolio, cutting a large chunk of her most coveted holdings and doubling down on top AI stocks.
ARK Invest sold approx $38 million worth of Tesla (TSLA) stock and redeployed a A total of $50 million Broadcom (AVGO) to dive into buying, a subtle shift in where it sees near-term opportunities.
Clearly, the investor world has been shocked by Warren Buffett’s retirement.
Watching Oracle feel like the end of an era in his Spurs’ slow, steady, cash-flow-first playbook.
However, as a child of the 90s (YOLO), slow and steady investing was sleepy. I’ve always felt that the investing world needs a kick in the pants, a real wake-up call.
Cathy Wood brings to the table an investing style.
His big, high-confidence in disruptive technologies with a long time horizon and willingness to take more risks has made him an icon among the younger demographic.
Reddit user _Orlandoo summed up the sentiment perfectly in a WallStreetBets post titled “Kathy Wood is a crazy person, and I love it – along with her (and her portfolio’s) volatility.”
That’s exactly the kind of sentiment that makes the ARK boss’ move carry so much weight for investors.
Kathy Wood makes sharp pivot, increasing AI exposure while trimming long-time favorite portfolio. Photo by Bloomberg at Getty Images” loading=”eager” height=”641″ width=”960″ class=”yf-lglytj loader”/>
Kathy Wood makes a sharp pivot while increasing AI exposure while trimming a portfolio of long-time favorites.Photo by Bloomberg at Getty Images
They buy
Broadcom (AVGO): bought 143,089 share – $50.74 million
Klarna Group PLC (KLAR): bought 56,993 share – $1.71 million
AI Land (KDK): bought 72,320 Shares
sells
Tesla (TSLA): sold out 86,136 share – $38.52 million
Taiwan Semiconductor (TSM): sold out 19,310 share – $6.39 million
Unity Software (U): sold out 126,437 share – $5.77 million
Kratos Defense (KTOS)
Teradyne (TER)
Natera (NTRA)
Intuit (INTU)
Global-E Online (GLBE)
Wood used inside the pullback Broadcom ARK Invest’s Biggest Buying Stocks of the Day
For perspective, Broadcom stock is down 6% in the past month, but wrapped up 2025 with an incredible 51% gain.
The recent dip follows reports that Chinese officials are reportedly urging domestic firms not to work with certain US and Israeli software providers, including Broadcom’s VMware unit, due to national security grounds.
More Tesla:
However, Wood isn’t buying into the geopolitical hangup and is going all-in on the popular AI pick-and-shovels play.
Interestingly, Wood also bet more than $6 million on TSMC, another critical piece of the whole AI infrastructure puzzle.
As recent stock market activity shows, AI investors are focusing less on flashy chips and more on everything that can actually run the whole machine.
To use my favorite analogy, it’s like building a city.
Naturally, to build that city, you need the factoryfloor (TSMC) To produce materials, as well as necessary Plumbing and Connections (Broadcom plus VMware software layer).
Both companies have worked on these projects for decades, but in today’s AI boom, that relationship is on full display in its custom AI chip efforts, where Broadcom is facilitating design, while TSMC has become the manufacturing muscle.
Wood’s decision to cut more Tesla A stock pattern is formed.
Late last year, Wood began trimming Tesla stock from the ARK portfolio, but his move on Wednesday was the most significant.
Despite the big selloff, Tesla stock is still the number one position in the ARKK ETF, with more than 10% weighting.
Given Tesla’s bleak 2025, the shuffle makes sense.
Deliveries dropped 1,636,129 vehicles in 2025, down significantly from 1,789,226 in 2024, on the back of strong, intense and worrying pricing pressures.
Margins faced headwindsTesla has focused on discounts and cheaper trims to secure volume.
Production speed was unevenEspecially with its popular Cybertruck, which continues to fall short of initial demand expectations at high prices.
Perhaps the only bright spot for the tech giant was energy, where deployments rose from 31.4 GWh to 46.7 GWh, according to Investing.com, helping fuel an alternative narrative for Tesla CEO Elon Musk’s future beyond EVs.
Meanwhile, investors continue to pay for the AI story, with Tesla stock up 39% over the past six months.
However, just when it looked like investors could catch a break, Musk posted another downer on X (formerly Twitter).
Surprisingly, the stock fell 1.8% after the post.
Related: Goldman Sachs Drops Curveball on Interest Rate Cuts
This story was originally published by TheStreet on January 15, 2026, where it first appeared in the Investing section. Add TheStreet as a preferred source by clicking here.
