Cathy Wood, Head of the Investment Department, is famous for making bold bets on sabotage innovation, most of them in the United States
But this week, I looked abroad, and an Asian chip maker was optimistic about the investor about the infrastructure of artificial intelligence and semiconductor returns after signs of a tariff.
In April, President Donald Trump raised the customs tariff for Chinese goods of up to 145 %, which prompted a rapid revenge of Beijing and the launch of a sharp sale in the market with the outbreak of tensions between the largest economists in the world.
Earlier this month, the United States and China concluded a rare deal in Geneva to temporarily reduce the customs tariff, as both sides work towards a broader agreement.
Wood’s money witnessed a brief bump after Trump won the presidency last November, but this momentum did not go far. ETF has a pioneer atnovation ((Binding)) Performing S&P 500, amid the wider market fluctuations.
A year later, ARKK decreased by 2.67 %, which is slightly worse than the 1.34 % S&P loss.
Wood got 153 % noticeable in 2020, which helped build her reputation and attract loyal investors. However, her long -term performance made many others skeptical in her aggressive style.
As of May 23, ARK Innovation ETF, which is $ 5 billion under management, has a five -year yield of 1.75 %. In comparison, the S&P 500 has an annual return of 16.20 % during the same period.
ARK Innovation ETF has witnessed a net net flow of $ 2.45 billion over the past 12 months until May 21, with $ 446.69 million last month, according to ETF Research Company Vettafi.image Source & Colon; PARAS GRIFFIN & Sol; Getty Images
Wood investment strategy is clear: ARK ETFS usually buy shares in emerging companies in the field of high -tech in areas such as artificial intelligence, Blockchain, biomedical technology, and robots.
Wood says these companies have the ability to reshape industries, but their fluctuations lead to great fluctuations in the values of Turkey.
Ark Innovation ETF has clarified $ 7 billion of investor wealth over the ten years ending in 2024, according to an analysis conducted by Mourningstar Alynott analyst. This made it the third largest destructive wealth between investment funds and the investment fund qualifiers circulating in Arnot ranking.
Wood recently said that the United States comes out of a three -year “recession” and is heading to the production -led recovery, which can lead to a wider bull market.
In a letter to the investors published on April 30, the recession predictions that were withdrawn to 2026 rejected, “you expect” more clarity on definitions, taxes, regulations and interest rates over the three to six months. “
She wrote: “If the current introductory disorders lead to a more free trade, as the customs tariffs and the non -transmitted barriers decrease along with declines in taxes, regulations and other interest rates, the real GDP growth and productivity must be surprised on the high side of expectations at some point during the second half of this year.”
It also struck an optimistic tone of technology shares.
“During the current turbulent transition in the United States, we believe that consumers and companies are likely to speed up the technically capable innovation platforms including artificial intelligence, robots, energy storage, Blockchain technology, and a multi -tool sequence,” she said.
But not all investors share Wood optimism. ARK Innovation ETF has witnessed a net external flow of $ 2.45 billion over the past 12 months until May 21, with $ 446.69 million last month, according to ETF Vettafi Research.
On May 19 and 20, Wood’s ARK 241,047 shares bought shares from the semiconductor manufacturer in Taiwan, or TSMC ((TSM)) .
The value of this part of the shares is estimated at about $ 46.3 million and is one of the largest modern Wood deals.
Taiwan semi -conductors is the world’s leading contract maker and a main resource for NVIDIA ((Nvda)) And advanced small devices ((AMD)) . It manufactures advanced chips used in artificial intelligence applications, including those that operate the large language models developed by companies such as Microsoft ((Msft)) And Google ((Googl)) .
TSMC shares decreased by 4.2 % so far in 2025, but the arrow has flourished sharply last month, increasing by approximately 27 % with investors re -evaluating the influence of US -Chinese definitions on the looks of the chip maker.
In April, the company informed strong results in the first quarter, as the share profits increased by 60.4 % to $ 2.12 per AdR. Revenue amounted to $ 25.53 billion, an increase of 41.6 % on an annual basis.
For the current quarter, TSMC expects 28.4 billion dollars to $ 29.2 billion. The middle point of $ 28.8 billion, which highlights Wall Street’s goal of $ 26.92 billion.
“The move to the second quarter of 2025, we expect our work to be supported through strong demand for our 3-manometer technologies in industry and 5 nm,” said Windel Huang, TSMC Financial Director, said.
Betting ascending is not without risks. TSMC is exposed to geopolitical tensions and trade suspicions between the United States and China, which can harm the delivery of the company and its revenues.
“Although we have not seen any changes in the behavior of our customers so far, uncertainty and risks from the potential impact of the customs tariff policies exist,” Huang said in a TSMC press statement.
The CEO of Nvidia, Jensen Huang, said last September that NVIDIA has the ability to switch to other suppliers because it had enough intellectual property. However, the key may reduce the quality of the chip.
More Nvidia:
“Maybe the technology of the process is not great, we may not be able to get the same level of performance or cost, but we will be able to provide the offer,” Huang said at Goldman Sachs. “If anything happens, we should be able to capture it and lack it elsewhere.”
However, he praised the unparalleled TSMC capabilities.
He added: “TSMC is the best in the world with an incredible margin … Great chemistry, lightness of movement, the fact that it can expand.”
In the first quarter, Wood bought 8996 TSMC share. The stocks are not at the best 10 holdings.
Stanley Druckenmiller has also bold proof in TSMC, adding 491,265 shares in the first quarter, which represents an increase of 456.9 % in his share.
