Cathie Wood's ARK shifts focus, sells AMD stock and buys BABA, BIDU

Cathie Wood's ARK ETFs executed significant portfolio adjustments on September 24th, 2025, signaling a strategic pivot away from certain semiconductor holdings and towards Chinese tech. ARK sold 138,432 shares of Advanced Micro Devices (AMD) for $22.27 million and continued reducing its Tempus AI position by selling 45,299 shares. Concurrently, ARK demonstrated a bullish stance on Chinese tech, acquiring 63,231 shares of Alibaba ($10.31 million) and 82,913 shares of Baidu ($10.41 million), suggesting a reallocation of resources towards emerging markets and AI with perceived long-term growth despite geopolitical tensions.

Analysis

ARK Investment Management's daily trades on September 24th, 2025, reveal a significant strategic pivot, reallocating capital from US semiconductors to Chinese technology firms. The fund executed a substantial sale of 138,432 shares in Advanced Micro Devices (AMD), valued at approximately $22.27 million, marking a notable reduction in exposure to the volatile semiconductor sector. Concurrently, ARK demonstrated strong conviction in the Chinese market by acquiring 63,231 shares of Alibaba (BABA) for over $10.31 million and 82,913 shares of Baidu (BIDU) for $10.41 million. This bullish stance on Chinese tech, occurring despite ongoing regulatory and geopolitical tensions, is reinforced by a pattern of similar purchases earlier in the week. The portfolio adjustment also included the continued divestment from Tempus AI (TEM) with a sale of 45,299 shares, solidifying a strategic exit from that position. These combined moves indicate a deliberate rotation towards what ARK perceives as undervalued growth opportunities in emerging markets and away from certain segments of the US tech industry.

Key Decisions for Investors

• Investors should view these trades as a high-conviction rotation, suggesting ARK believes the potential reward in select Chinese tech now outweighs the widely-publicized risks.
• Holders of AMD should be aware of potential increased selling pressure, as this significant divestment from a high-profile manager could influence broader market sentiment on the semiconductor sector.
• The consistent, multi-day accumulation in Alibaba and Baidu represents a strong bullish signal for investors evaluating entry points into Chinese technology and AI.
• The continued and systematic selling of Tempus AI warrants caution for current shareholders, as persistent institutional outflows could suppress the stock's valuation.