Cathie Wood's ARK Invest Shifts $20.5M to Broadcom (AVGO) Just Before Earnings

Key Highlights

Table of Contents

ARK Invest acquired 57,705 shares of Broadcom valued at $20.5 million in anticipation of Q3 earnings
The firm divested 37,977 AMD shares across four ETFs, totaling approximately $18.2 million
Additional purchases included Cerebras Systems and Cloudflare, collectively worth $26 million
Broadcom’s Q3 results scheduled for September 3 with analysts projecting 83.3% revenue growth year-over-year
TipRanks rates Broadcom as a Strong Buy with projected upside of 43.4% from current trading levels

In a strategic portfolio adjustment on Wednesday, August 26, Cathie Wood’s ARK Invest committed $20.5 million to Broadcom shares while simultaneously divesting $18.2 million in Advanced Micro Devices holdings.

The investment firm secured 57,705 shares of Broadcom distributed across its various ETFs. This acquisition comes ahead of Broadcom’s scheduled fiscal third-quarter earnings announcement on September 3.

Broadcom Inc., AVGO

Analyst consensus projects Broadcom’s Q3 revenue will reach $29.24 billion, representing an 83.3% increase compared to the previous year. Adjusted earnings per share are anticipated to land at $3.21, a significant jump from $1.69 recorded in the same quarter last year.

Market participants are particularly focused on AI semiconductor revenue performance. Broadcom has projected this division will generate $16 billion during the quarter, exceeding double the prior-year results.

RBC Capital’s analyst Srini Pajjuri anticipates a modest earnings surprise with elevated forward guidance. He highlighted robust expansion in Broadcom’s networking division as a primary catalyst.

While Pajjuri acknowledged emerging TPU market competition from MediaTek and a supply agreement between Google and Marvell, he maintains confidence that Broadcom’s existing long-term agreements and expanding TPU market penetration will sustain the company’s growth trajectory over coming years.

According to TipRanks data, Broadcom maintains a Strong Buy consensus rating supported by 24 Buy recommendations and three Hold ratings. The consensus price target of $509.96 implies potential upside of 43.4% from present trading levels. The stock has gained 3.1% year-to-date.

Second AMD Reduction This Week for ARK

Concurrent with the Broadcom acquisition, ARK was reducing its exposure to Advanced Micro Devices. The firm liquidated 37,977 AMD shares distributed across four ETFs, generating approximately $18.2 million in proceeds.

This transaction wasn’t a standalone decision. ARK executed a similar AMD share sale earlier in the week, indicating a strategic position reduction.

The reallocation signals ARK is repositioning within semiconductor holdings, preferring Broadcom’s artificial intelligence business exposure compared to AMD.

Additional Wednesday Trading Activity

ARK acquired 69,585 shares of Cerebras Systems valued at approximately $12.8 million alongside 47,794 Cloudflare shares worth roughly $13.3 million.

Among dispositions, ARK sold 181,919 Tempus AI shares generating $12.5 million and 53,280 Twist Bioscience shares for $8.1 million.

The firm also divested 14,339 CrowdStrike shares worth $2.7 million and 25,009 Robinhood Markets shares for $2.8 million.

Minor sales encompassed 14,965 Roblox shares generating $585,430 and 25,000 Brera Holdings shares for $105,500.

This trading activity occurred on the same day Nvidia announced Q2 FY27 financial results, delivering adjusted earnings per share of $2.22 versus expectations of $2.09, accompanied by revenue climbing 106% year-over-year to $96.2 billion.

ARK’s Wednesday portfolio adjustments underscore its continued emphasis on artificial intelligence-connected enterprises, with Broadcom, Cerebras, and Cloudflare all receiving fresh capital allocations.

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