Cathie Wood’s ARK Invest made a big move on Wednesday, August 26, pouring $20.5 million into Broadcom while offloading $18.2 million worth of Advanced Micro Devices stock.
ARK purchased 57,705 Broadcom shares across multiple ETFs. The buy came days before Broadcom is set to report its fiscal third-quarter earnings on September 3.
Wall Street expects Broadcom’s Q3 revenue to hit $29.24 billion, up 83.3% from the same period last year. Adjusted earnings per share are forecast at $3.21, compared to $1.69 a year ago.
Investors will be paying close attention to AI semiconductor revenue. Broadcom has forecast that segment will reach $16 billion in the quarter, more than double the year-ago figure.
RBC Capital analyst Srini Pajjuri expects a small earnings beat and higher guidance. He pointed to strong growth in Broadcom’s networking business as a key driver.
Pajjuri did flag some competition in the TPU market from MediaTek and a supply deal between Google and Marvell. But he believes Broadcom’s long-term contracts and growing TPU adoption should support the company over the next few years.
On TipRanks, Broadcom holds a Strong Buy consensus based on 24 Buy ratings and three Holds. The average price target of $509.96 suggests 43.4% upside from current levels. Year-to-date, the stock is up 3.1%.
At the same time ARK was buying Broadcom, it was cutting ties with Advanced Micro Devices. ARK sold 37,977 AMD shares across four ETFs, bringing in roughly $18.2 million.
This was not an isolated move. ARK also sold AMD shares earlier in the week, pointing to a deliberate reduction in their position.
The shift suggests ARK is rotating within the chip sector, favoring Broadcom’s AI exposure over AMD.
ARK bought 69,585 Cerebras Systems shares for about $12.8 million and 47,794 Cloudflare shares for around $13.3 million.
On the sell side, ARK offloaded 181,919 Tempus AI shares for $12.5 million and 53,280 Twist Bioscience shares for $8.1 million.
ARK also sold 14,339 CrowdStrike shares for $2.7 million and 25,009 Robinhood Markets shares for $2.8 million.
Smaller sales included 14,965 Roblox shares for $585,430 and 25,000 Brera Holdings shares for $105,500.
These trades came the same day Nvidia reported Q2 FY27 results, posting adjusted earnings per share of $2.22 against an estimate of $2.09, with revenue up 106% year-over-year to $96.2 billion.
ARK’s Wednesday trades reinforce its focus on AI-linked companies, with Broadcom, Cerebras, and Cloudflare all added to holdings.
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