Cathie Wood, chief of Ark Investment Management, likes to chase momentum in her favorite tech bets.
This week, she’s buying $6.5 million of Cerebras stock as the AI chip stock surges.
Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 10.37% as of writing, while the S&P 500 surged 12.09%, Yahoo Finance data shows.
Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.
Those swings have weighed on Wood’s long-term gains. As of Sept. 8, her Ark Innovation ETF has delivered a five-year annualized return of -6.45%, while the S&P 500 has an annualized return of 11.20% over the same period, according to data from Morningstar.
Cathie Wood says AI could help support high corporate profits
Wood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She believes these businesses have strong growth potential, but their volatility often causes fluctuations in the Ark’s funds.
Over the decade ending in 2025, the Ark Innovation ETF wiped out nearly $5 billion in investor wealth, according to a report by Morningstar’s analyst Amy Arnott. That made it the fourth-biggest wealth destroyer among mutual funds and ETFs in the ranking.
Wood remains optimistic about AI, which she sees as a major driver of productivity, economic growth, and corporate profits in the years ahead.
“Two hundred railroads went bankrupt in the 1800s. I don’t think the AI buildout will end the same way. The railroads were built on a hope and a prayer while AI revenues seem to be screaming,” Wood said in a recent post on X.
Related: Cathie Wood buys $44.5 million of tumbling tech stock
In another August post on X, Wood said U.S. corporate profits remain unusually strong, with domestic profits before tax at 13.2% of GDP, a level she said is near multi-decade highs.
Some of that strength came from the massive monetary and fiscal stimulus during the pandemic, but Wood believes another factor is helping sustain margins today: companies are leaning into AI and productivity gains to protect them.
“I think we’re still early in seeing how far that can go,” she said, adding that companies that use AI effectively will “separate themselves from the ones that don’t.”
Not all investors agree with Wood’s optimism. Over the past 12 months through Sept. 7, the Ark Innovation ETF saw roughly $1.74 billion in net outflows, according to data from ETF research firm VettaFi.
Cathie Wood buys $6.5M of Cerebras stock
On Sept. 8, Wood’s Ark Innovation ETF bought 32,561 shares of Cerebras Systems Inc (CBRS), according to Ark’s daily trading information sent to TheStreet. Based on the latest trading price of $199.98, these stocks were worth about $6.5 million.
Cerebras is a semiconductor company that develops chips and computing systems for AI and went public in May. Since its market debut, shares of Cerebras have tumbled about 36%. But over the past five days, the stock has gained roughly 15%.
The rally followed Cerebras’ announcement of a new AI data center in Mikkeli, Finland, in partnership with Compute Nordic Finland. The facility will be built in phases and is expected to reach 165 megawatts of capacity. Construction on the first 50 MW phase is already underway, which expands Cerebras’ capacity to provide AI computing services.
In August, Cerebras raised its full-year outlook when it reported its second-quarter results since going public.
More Cathie Wood:
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Cerebras posted Q2 revenue of $180 million, below the $194 million expected by analysts. But it also reported a core revenue figure of $210 million, which excludes “pass-through revenue” and “amortization of customer warrant assets.”
The company’s adjusted loss of 5 cents per share was much narrower than the 17-cent loss analysts expected, CNBC reported.
Morgan Stanley analyst Joseph Moore raised the firm’s price target on Cerebras to $279 from $273 following the results and maintained an overweight rating, according to The Fly.
The analyst pointed to better-than-expected core revenue and margins, higher fiscal 2026 guidance, and Cerebras’ forecast for more than three times core revenue growth in fiscal 2027. Morgan Stanley said it came away from the earnings report “more constructive.”
Wood has repeatedly added Cerebras shares while trimming its AMD position. On the same day, she sold more AMD shares as the stock gained 5.9%.
Wood isn’t the only big-name investor betting on Cerebras. Chase Coleman’s Tiger Global disclosed a stake of 3 million Cerebras shares in Q2, according to an SEC filing.
Wall Street analysts are also bullish on Cerebras. Analysts have an average price target of $296, with estimates ranging from $275 to $330, according to TipRanks. The average target implies roughly 50% upside from a recent price.
Cerebras is not a top-10 holding in the Ark Innovation ETF.
Top 10 Holdings in the Ark Innovation ETF by weight as of Sept. 9, 2026:
- Tesla (TSLA) – 9.52%
- SpaceX (SPCX) – 6.51%
- Circle Internet Group (CRCL) – 5.70%
- Tempus AI (TEM) – 5.11%
- CRISPR Therapeutics (CRSP) – 4.53%
- Coinbase (COIN) – 4.47%
- Robinhood Markets (HOOD) – 4.17%
- Twist Bioscience (TWST) – 3.20%
- Shopify (SHOP) – 3.13%
- 10x Genomics (TXG) – 3.06%
Other than buying Cerebras shares, Wood’s latest trades included buying Beam Therapeutics (BEAM), CRISPR Therapeutics (CRSP), Archer Aviation (ACHR), Robinhood Markets (HOOD), and Intellia Therapeutics (NTLA).
She also sold shares of Brera Holdings (SLMT), Twist Bioscience (TWST), Tempus AI (TEM), Palantir Technologies (PLTR), and Advanced Micro Devices (AMD).
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