Cathie Wood Doubles Down With $44M on AI Chip Stocks Amid Selloff

ARK Invest spent $27.42 million on Nvidia Corp. (NASDAQ:NVDA) and $16.69 million on Broadcom Inc. (NASDAQ:AVGO) in a single session on August 10, 2026, buying into a broad semiconductor selloff that sent both stocks lower.

Cathie Wood's decision to deploy roughly $44 million into two chip names on a down day says something about where she sees value, and reviewing where you stand financially before following a fund manager into a volatile sector is a step worth taking.

122,422 Nvidia shares added for $27.42 million on August 10

ARK purchased 122,422 shares of Nvidia on August 10, 2026, valued at approximately $27.42 million, building on previous acquisitions earlier in August, BigGo Finance reported. The purchase was spread across multiple ARK ETFs and represented the fund's largest single-day buy by dollar value after the Deere sale.

Nvidia shares traded near $224 on August 10, 2026, roughly 10% below their July peak. Wood has been adding Nvidia exposure consistently in recent weeks, suggesting she views the pullback as temporary rather than a signal of weakening AI infrastructure demand.

39,020 Broadcom shares added for $16.69 million across two ETFs

ARK purchased 39,020 Broadcom shares across its ARKK and ARKQ ETFs on August 10, totaling approximately $16.69 million, BigGo Finance confirmed. Broadcom designs custom AI chips for Google, Meta, and other hyperscalers, making it a direct beneficiary of the AI infrastructure buildout.

Broadcom traded near $428 on August 10, 2026, and carries a long-term supply agreement with Google for TPU development through at least 2031. The addition signals ARK's interest in the custom chip side of the AI build alongside Nvidia's GPU dominance.

What ARK sold on the same day

ARK sold three positions on August 10 to generate capital for the Nvidia and Broadcom buys.

• Deere & Co. (NYSE:DE), 60,458 shares sold for approximately $36.8 million.
• Shopify Inc. (NYSE:SHOP), 46,101 shares sold for approximately $7 million.
• Snowflake Inc. (NYSE:SNOW), 15,830 shares sold for approximately $5.2 million.

Selling Deere at that scale represents a clear rotation out of industrial exposure and into semiconductor names. ARK also added $18.1 million in Cloudflare Inc. (NYSE:NET) and $9.4 million in Teradyne Inc. (NASDAQ:TER) on the same day, reinforcing the technology tilt.

ARKK has returned about 5% in 2026 versus the S&P 500's 14%

ARKK has gained approximately 5.4% year-to-date as of mid-August 2026, significantly trailing the S&P 500's roughly 14.5% return over the same period, PortfoliosLab data showed. The performance gap underscores the challenge of active management in a market that has rewarded broad index exposure more than concentrated growth bets this year.

ARKK returned 35.49% in 2025, more than doubling the S&P 500's gain that year, PlakyGuide noted. The fund's pattern of sharp outperformance followed by extended underperformance has repeated several times since its inception in 2014, and you may want to weigh that history before sizing any exposure.

ARK's $1.5 trillion global AI spending projection by 2030

ARK Invest has projected that global AI infrastructure spending could reach $1.5 trillion annually by 2030, a figure the firm uses to justify its concentrated positions in chip and AI platform stocks, the Motley Fool reported. Both Nvidia and Broadcom sit at the center of that spending cycle as the two dominant providers of data center accelerators and custom AI silicon.

The projection supports ARK's case for long-term revenue growth at both companies, but it also rests on assumptions about AI adoption rates, government regulation, and corporate capital expenditure levels that remain uncertain over a multi-year horizon.

Nvidia at roughly 25 times and Broadcom at roughly 20 times forward earnings

Nvidia traded at approximately 25 times forward earnings as of August 10, 2026, while Broadcom traded at roughly 20 times. Both multiples have compressed from their 2025 peaks, when Nvidia traded above 40 times and Broadcom above 30 times forward earnings.

The compression gives ARK a more favorable entry point than earlier in the AI cycle. Lower multiples reduce the risk of paying a premium that evaporates if growth decelerates, though both stocks remain significantly more expensive than the S&P 500's average of roughly 18 times forward earnings.

Risks of following a concentrated growth strategy during a selloff

Buying into a selloff assumes the decline is temporary and not the beginning of a broader repricing. ARKK's 80% drawdown from its 2021 peak to its 2022 low illustrates how concentrated growth bets compound losses during sustained downturns. Nvidia and Broadcom are both large, established businesses, but quality does not eliminate price risk.

You may also want to consider that ARK's actively managed approach means positions change frequently. A stock Wood buys on a Monday may be trimmed by the following week, and the fund's daily trade disclosures sometimes show conflicting signals within the same month.

Bottom line

Wood deployed roughly $44 million into Nvidia and Broadcom on a single down day, while also selling Deere, Shopify, and Snowflake. The trades reinforce ARK's conviction that AI infrastructure spending has years of growth ahead, and the compressed valuations at both chip names offered a more favorable entry than recent quarters.

The gap between ARKK's 5% return and the S&P 500's 14% gain this year is a reminder that conviction and returns do not always move together, and the decision to start investing alongside a fund manager with that track record ultimately depends on whether you view the underperformance as a setup or a signal to wait for more clarity.

This article is for informational purposes only and should not be considered investment advice.

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