Ark Invest Loads Up on Nvidia and Broadcom in AI Infrastructure Play

Billionaire Cathie Wood's Ark Invest has been buying up shares of Nvidia and Broadcom during recent market sell-offs, sparking speculation about whether investors should follow her lead.

The firm's flagship Ark Innovation ETF (ARKK) has struggled to keep pace with the S&P 500 this year, but Wood remains bullish on the prospects of companies building AI infrastructure.

Ark Invest added a combined 122,422 shares of Nvidia worth around $27 million across five exchange-traded funds in late August. The stock is now up 18% year to date and has reached fresh highs, despite dipping during the sell-off.

Nvidia's integrated server platforms are seen as key to advancing AI workloads, while Broadcom's custom chips for hyperscalers offer a potential hedge against Nvidia's dominance in the space. The firm believes these specialized chips could capture up to a third of the market by 2030, with Broadcom expecting AI chip revenue to reach $56 billion this year and above $100 billion next year.