Nvidia and TSMC See Massive Bets from Cathie Wood as Meta Earnings Fuel AI Demand

Cathie Wood's Ark Invest has made significant investments in Nvidia (NVDA) and Taiwan Semiconductor Manufacturing (TSMC), totaling $15 million and $14.7 million respectively, across various exchange-traded funds (ETFs). These purchases occurred shortly after Meta Platforms released its second-quarter earnings results.

The timing of these buys is notable given Meta's increased capital expenditure (capex) guidance for 2026, which ranges from $130 billion to $145 billion. This increase in capex is largely driven by the company's need to expand its data center footprint and prioritize near-term capacity for training models.

Nvidia supplies the majority of GPUs that power AI workloads, making it likely that the company will capture a significant share of Meta's expanding wallet. Wood appears to be betting on Nvidia's ability to convert this increased infrastructure spending into revenue growth.