TLDR
- ARK Invest bought 57,705 Broadcom shares worth $20.5 million ahead of its Q3 earnings report
- ARK sold 37,977 AMD shares across four ETFs for around $18.2 million, continuing a multi-day sell-off
- ARK also picked up Cerebras Systems and Cloudflare shares worth a combined $26 million
- Broadcom reports Q3 results on September 3, with Wall Street expecting revenue to jump 83.3% year-over-year
- Broadcom carries a Strong Buy consensus on TipRanks with 43.4% upside potential from current levels
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%.
ARK Trims AMD for Second Time This Week
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.
Other Key Trades on Wednesday
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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