wood doubles down on tsmc: ark's biggest buy since last june

wood doubles down on tsmc: ark's biggest buy since last june

2025-05-20 tsmc

New York, Tuesday, 20 May 2025.
cathie wood’s ark investment made a significant move, purchasing a large amount of shares in taiwan semiconductor manufacturing company. This marks a notable shift from ark’s previous strategy of primarily selling tsmc stock since last year. The purchase, the largest since june 2024, signifies a renewed confidence in the chipmaker. The fund bought 123,587 shares for the Ark Innovation ETF. They added 74,189 shares for the Ark Next Generation Internet ETF. This move comes amid easing trade tensions and ai advancements.

ark’s strategic shift

Cathie Wood’s recent investment in tsmc signals a major change in ark investment’s approach to the semiconductor giant [1]. Ark Investment Management’s purchase is the largest since june 18, 2024 [1]. This is a clear indication that ark is shifting from primarily selling tsmc shares to actively buying them [1]. This decision aligns with improved market sentiment and a more favorable outlook for the semiconductor industry, especially with easing trade tensions between the u.s. and china and advancements in artificial intelligence [1][7].

market factors and tsmc’s performance

Tsmc’s recent performance report highlighted strong sales figures, with april sales reaching 349.57 billion new taiwan dollars [1]. This represents a 10.1 10.1% increase year-over-year, surpassing analyst expectations of 38% [1]. The surge in sales, coupled with increased capital expenditure from major tech companies like meta and microsoft, points to robust demand for ai-related products [1]. Morgan Stanley has given tsmc an ‘overweight’ rating, further bolstering confidence in the company’s prospects [1].

Before ark investment’s increased stake, other major wall street investors also increased their positions in tsmc [1]. Stanley Druckenmiller, a legendary investor, increased his tsmc holdings by 491,300 shares, bringing his total to 598,800 shares, a 21.881 21.88% increase [1]. Duan Yongping’s HH&H International Investment also initiated a new position in tsmc, purchasing 271,800 shares valued at $45.117 million [1]. These moves reflect a broader confidence in tsmc’s strategic importance and growth potential [1].

potential risks and fund performance

While cathie wood is known for her aggressive bets on disruptive technologies, ark innovation etf has faced challenges in recent years [1]. Despite an 82% increase in value over the two years leading up to 2024, the etf remains approximately 63% below its peak [1]. The fund has underperformed the nasdaq composite index for much of the past five years [1]. The increased investment in tsmc may be a strategic move to revitalize the fund’s performance by capitalizing on the ai supply chain [1].

Bronnen


ARK Investment TSMC shares