Cathie Wood's Ark Invest adds Alibaba and Baidu, lowers holdings in AMD

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Marco Bello

Cathie Wood's flagship fund, Ark Innovation ETF (BATS:ARKK [https://seekingalpha.com/symbol/ARKK]), showed a series of strategic moves in the tech sector recently.

The ETF recently initiated exposure to Chinese e-commerce giant Alibaba (NYSE:BABA [https://seekingalpha.com/symbol/BABA]), buying ~63K shares worth around $11 million, and also invested in China's search engine market, buying ~82K shares of Baidu (NASDAQ:BIDU [https://seekingalpha.com/symbol/BIDU]), worth ~ $11 million. This likely reflects a growing confidence in select Chinese names despite ongoing geopolitical tensions.

Notably, the fund reduced holdings in semiconductor company Advanced Micro Devices (NASDAQ:AMD [https://seekingalpha.com/symbol/AMD]), selling ~138K shares, worth about ~$22.3 million, bringing its total holdings to ~1.3M shares worth more than $209 million.

Tempus AI (TEM [https://seekingalpha.com/symbol/TEM]) has also been on the sell list consistently. The fund recorded a smaller trade in this health tech name, selling stock worth ~$3.8 million. However, it still holds ~4.35 million shares in the company (TEM [https://seekingalpha.com/symbol/TEM]) worth $344 million.

The timing aligns with increased bullishness in Chinese technology firms. Alibaba (NYSE:BABA [https://seekingalpha.com/symbol/BABA]) recently announced plans to increase AI spending [https://seekingalpha.com/news/4498192-alibaba-shares-surge-in-hong-kong-as-ceo-announces-ai-spending-boost-beyond-50b-plan] beyond an already ambitious budget—fueling further share price gains.

MORE ON BAIDU, ALIBABA

* Alibaba: Time For A Higher Valuation [https://seekingalpha.com/article/4825637-alibaba-time-for-higher-valuation]
* Is Alibaba The Next Best AI Play [https://seekingalpha.com/article/4825507-is-alibaba-the-next-best-ai-play]
* Alibaba's Stock Price Does Not Reflect The Reality [https://seekingalpha.com/article/4825108-alibabas-stock-price-does-not-reflect-the-reality]
* Baidu’s Apollo Go begins Dubai's first autonomous ride-hailing trials [https://seekingalpha.com/news/4498439-baidus-apollo-go-begins-dubais-first-autonomous-ride-hailing-trials]
* Chinese tech stocks surge on Alibaba AI spending boost [https://seekingalpha.com/news/4498272-chinese-tech-stocks-surge-on-alibaba-ai-spending-boost]