Trimming Semiconductor Holdings Before Earnings
ARK Invest founder Wood recently made a major fund reallocation, with trading disclosures showing the sale of AMD and TSMC holdings totaling about 2250 million? Actually about $22.5 million. Data shows ARK sold 24,796 shares of AMD at the 26th closing price of $531.28, totaling about $13.2 million; the ARK Innovation ETF sold 21,894 shares of TSMC ADR, totaling about $9.3 million. The moves came after active trading in semiconductor stocks with cumulative gains, seen by the market as profit-taking.
Benefiting from strong AI chip demand, AMD shares are up about 148% year-to-date, while TSMC shares are up about 41% year-to-date. TSMC shares rose 1.4% Monday to close at $424.37. The sales came before AMD is due to report third-quarter earnings on November 3, with Wall Street expecting third-quarter EPS of $1.94, up from $1.20 a year earlier, and revenue expected to climb from $9.25 billion to $13.08 billion.
Analysts Still Bullish on Fundamentals
Although ARK has continued to reduce its AMD holdings, most Wall Street analysts remain bullish. Susquehanna analyst 克羅蘭 maintained a positive rating on October 21 and raised the target price to $620, while Bernstein maintained an Outperform rating with a target of up to $650. Last week, Moody's upgraded TSMC's credit rating from Aa3 to Aa2, citing TSMC's leadership in advanced-process chips and sound finances, with AI chip demand also supporting its outlook.
Adding Air Taxi Stocks
On the other hand, ARK bought 1,161,604 shares of Archer totaling about $4.8 million through the ARK Autonomous Technology & Robotics ETF and the ARK Space Exploration & Innovation ETF. Archer is currently developing the Midnight electric air taxi, continuing to move toward commercial service, and advancing a collaboration agreement with Boeing's Wisk business. In its latest quarterly earnings, Archer reported $5 million in revenue, beating market expectations of $1.96 million, with liquidity of $1.56 billion at quarter-end.
ARK also bought 434,012 shares of Joby through the same ETFs, totaling about $2 million. Like Archer, Joby is working to bring electric air taxis to commercial operations, reporting second-quarter revenue of $38.64 million, above expectations of 3038 million? Actually $30.38 million. Together the purchases of Archer and Joby totaled about $6.8 million, showing a shift toward the emerging air mobility sector.