Cathie Wood’s ARK Invest bought roughly $46.6 million of three beaten-down technology stocks on August 27 and 28, adding Broadcom, Cerebras Systems, and Cloudflare as the companies traded well below their recent peaks. ARK purchased approximately $20.5 million of Broadcom, $12.8 million of Cerebras, and $13.3 million of Cloudflare, according to daily trade disclosures.
The three stocks were trading between 14 percent and 53 percent below their all-time highs at the time of purchase. Cloudflare’s decline was particularly sharp given that its peak occurred just two weeks earlier, while Broadcom and Cerebras had fallen much further from their highs amid broader semiconductor and AI stock weakness.
The purchases reflect Wood’s consistent pattern of buying during market downturns. ARK Invest has demonstrated a contrarian approach, believing that short-term market sentiment often disconnects from long-term value, according to analysis of the firm’s trading patterns. This strategy has defined Wood’s investment philosophy, with the firm regularly adding to positions when prices fall sharply.
The timing of these purchases came as technology stocks faced broader headwinds. A global tech selloff had pressured semiconductor and AI-related shares throughout the summer of 2026, with concerns about AI financing, margin compression, and valuation pressure weighing on the sector. Multiple chip stocks, including Broadcom, had seen significant declines despite strong underlying business fundamentals.
Broadcom in particular had faced selling pressure earlier in the year after disappointing investors with its AI revenue guidance, despite posting strong overall earnings. The company had recovered somewhat by late August, but remained under pressure as traders reassessed exposure to chip stocks ahead of major earnings reports. ARK’s $20.5 million purchase of Broadcom shares came just days before the company was scheduled to report third-quarter results.
The moves also reflected a shift in ARK’s positioning within the semiconductor and AI infrastructure space. While adding to Broadcom, Cerebras, and Cloudflare, ARK simultaneously reduced its position in AMD by approximately $18.3 million, signaling a preference for Broadcom over its rival chipmaker at current valuations. This rebalancing underscores Wood’s view that certain AI infrastructure plays offered better risk-reward profiles despite the sector-wide volatility.
Cerebras, a relative newcomer to public markets with its 2026 IPO, has been a particular focus for Wood’s funds. The AI chip designer had seen its stock pulled back significantly from its initial public offering levels, creating what Wood’s team viewed as a buying opportunity. ARK has made multiple purchases of Cerebras throughout 2026, treating the post-IPO volatility as a chance to accumulate shares in a company focused on AI infrastructure.
Sources
- The Globe and Mail — Cathie Wood’s purchase amounts and discount percentages for Broadcom, Cerebras, and Cloudflare on August 27.
- Yahoo Finance — Specific share counts and dollar amounts: 57,705 Broadcom shares for $20.5 million, 69,585 Cerebras shares for $12.8 million, 47,794 Cloudflare shares for $13.3 million.
- TheStreet — ARK’s Cerebras purchase and the company’s positioning as a Nvidia challenger in AI chips.
- Benzinga — ARK’s broader trading activity on August 27, including the AMD position reduction and the timing relative to CrowdStrike earnings.
- Intellectia — Cathie Wood’s contrarian investment approach and belief that short-term market sentiment disconnects from long-term value.
- MarketWatch / Morningstar — Broadcom’s earlier earnings disappointment in June 2026 and subsequent stock decline.
- Reuters — Context on the broader tech selloff in mid-2026 driven by concerns over debt-funded AI spending.
