Cathie Wood just made a major shift in her portfolio, cutting a huge chunk of her most iconic holdings while doubling down on a top AI stock.
ARK Invest sold nearly $38 million worth of Tesla (TSLA) stock and redeployed a whopping $50 million to buy the dip in Broadcom (AVGO), a subtle shift in where it views the near-term opportunities.
Clearly, the investing world has gotten somber with Warren Buffett’s retirement.
Watching the Oracle hang up his spurs feels like the end of an era in the slow, steady, cash-flow-first playbook.
However, as a ’90s kid (YOLO), slow-and-steady investing felt sleepy. I always felt that the investing world needed a kick in the pants, a real wake-up call.
That’s exactly what the Cathie Wood investing style brought to the table.
Her big, high-conviction swings on disruptive technologies with a long-term horizon and willingness to take more risk have made her an icon among the younger demographic.
Reddit user _Orlandoo summed up the sentiment perfectly in a WallStreetBets post titled “Cathie Wood is a crazy person, and I love it — along with her (and her portfolio’s) volatility.”
That’s exactly the sort of sentiment that makes the ARK boss’s moves carry a lot more weight for investors.
Cathie Wood makes a sharp pivot, boosting AI exposure while trimming a longtime portfolio favorite.Photo by Bloomberg on Getty Images · Photo by Bloomberg on Getty Images
Buys
Broadcom (AVGO): Bought 143,089 shares — $50.74 million
Klarna Group PLC (KLAR): Bought 56,993 shares — $1.71 million
Kodiak AI (KDK): Bought 72,320 shares
Sells
Tesla (TSLA): Sold 86,136 shares — $38.52 million
Taiwan Semiconductor (TSM): Sold 19,310 shares — $6.39 million
Unity Software (U): Sold 126,437 shares — $5.77 million
Kratos Defense (KTOS)
Teradyne (TER)
Natera (NTRA)
Intuit (INTU)
Global-E Online (GLBE)
Wood used the pullback in Broadcom stock to make ARK Invest’s biggest purchases of the day.
For perspective, Broadcom stock is down 6% in the past month, but wrapped up 2025 with an incredible 51% gain.
The current dip follows reports that Chinese authorities are reportedly urging domestic firms to avoid working with particular U.S. and Israeli software providers due to national security grounds, which include Broadcom’s VMware unit.
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 over $6 million on TSMC, another critical piece of the whole AI infrastructure puzzle.
Story Continues
As recent stock market activity shows, AI investors are focusing less on flashy chips and more on everything that actually makes the whole machine run.
To use my favorite analogy, it’s like building a city.
Naturally, in building that city, you need a factoryfloor (TSMC) to produce the materials, while also needing the plumbing and connections (Broadcom plus the VMware software layer).
Both companies have worked on these projects for decades, but in today’s AI boom, that relationship is fully on display in its custom AI chip efforts, where Broadcom is facilitating the design, while TSMC remains the manufacturing muscle.
Wood’s decision to cut more Tesla stock has become a pattern.
Late last year, Wood began trimming Tesla stock from the ARK portfolio, but perhaps her move on Wednesday was the most significant.
Despite the massive sale, Tesla stock still holds the number one spot on the ARKK ETF, with over a 10% weight.
Considering Tesla’s bleak 2025, the reshuffling makes sense.
Deliveries slipped to 1,636,129 vehicles in 2025, down considerably from 1,789,226 in 2024, on the back of stronger, intensified, and worrying pricing pressures.
Margins faced headwinds, with Tesla focusing on discounts and cheaper trims in protecting volume.
Product momentum was uneven, particularly with its popular Cybertruck, which continues falling short of early demand expectations at higher prices.
Perhaps the only bright spot for the tech giant was energy, where deployments surged to 46.7 GWh from 31.4 GWh, according to Investing.com, helping fuel Tesla CEO Elon Musk’s alternative narrative for Tesla’s future beyond just EVs.
Investors, meanwhile, continued to pay up for the AI story, with Tesla stock rising 39% over the past six months.
However, just when it felt like investors might catch a break, Musk posted another downer on X (the former Twitter).
Unsurprisingly, the stock fell 1.8% after the post.
Related: Goldman Sachs drops a curveball on interest-rate cuts
This story was originally published by TheStreet on Jan 15, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.