ARK Invest Rotates into AI and Crypto with $21M AMD and Coinbase Buy

Cathie Wood’s ARK Invest has once again signaled its unwavering commitment to the "disruptive innovation" thesis, executing a series of high-conviction trades on February 17, 2026. The firm’s flagship funds collectively deployed approximately $21 million into Advanced Micro Devices (AMD), Broadcom (AVGO), and Coinbase (COIN). This strategic pivot comes at a time when the semiconductor industry is grappling with shifting demand cycles and the cryptocurrency market continues to mature under evolving regulatory frameworks. By doubling down on these specific names, Wood is positioning ARK to capture the next leg of growth in artificial intelligence infrastructure and the digital economy.

The acquisition of AMD is particularly noteworthy as it represents a classic "buy the dip" maneuver. AMD has recently faced headwinds as investors weigh its competitive position against Nvidia in the high-end GPU market. However, ARK’s move suggests a belief that AMD’s MI300 series and subsequent AI accelerators are undervalued by the broader market. Broadcom’s inclusion in the buy list further reinforces this AI-centric strategy. As a dominant force in custom ASICs (Application-Specific Integrated Circuits) and networking hardware, Broadcom serves as the backbone for hyperscale data centers. Wood’s interest in AVGO likely stems from the company’s ability to generate consistent cash flow while maintaining a critical role in the AI hardware stack.

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The firm’s flagship funds collectively deployed approximately $21 million into Advanced Micro Devices (AMD), Broadcom (AVGO), and Coinbase (COIN).

Simultaneously, ARK’s increased stake in Coinbase highlights a persistent bullishness on the crypto ecosystem. Despite the inherent volatility of the digital asset space, Coinbase has solidified its position as the primary institutional gateway for crypto in the United States. By "loading up" on COIN, ARK is betting on the long-term institutionalization of Bitcoin and Ethereum, as well as the expansion of Coinbase’s subscription and services revenue. This move often coincides with periods of price consolidation in the underlying crypto assets, where ARK seeks to accumulate shares ahead of anticipated retail surges.

To fund these aggressive entries, ARK scaled back its positions in Teradyne and Airbnb. The sale of $13.3 million in Teradyne shares marks a significant reduction in ARK’s exposure to the industrial automation and semiconductor testing sector. While Teradyne has been a long-term holding, the rotation suggests that Wood sees higher immediate upside in AI chip designers and platforms than in the hardware testing equipment used to manufacture them. Similarly, the reduction in Airbnb exposure indicates a tactical retreat from the consumer travel sector, which may be facing saturation or macroeconomic pressures that conflict with ARK’s high-growth mandates.

These trades reflect a broader trend of portfolio concentration within ARK Invest. In recent months, the firm has moved away from diversified "work-from-home" stocks and toward a more focused bet on the "AI-Crypto-Genomics" trifecta. For market participants, Wood’s trades serve as a barometer for retail sentiment and a signal of where "innovation capital" is flowing. While ARK’s ETFs have experienced significant volatility over the past two years, this latest round of buying suggests a renewed confidence in the structural growth of the semiconductor and digital asset industries. Investors will be watching closely to see if these "dip buys" yield the outsized returns Wood has promised, or if they represent a risky doubling down in an increasingly crowded AI trade.

The broader market implications of ARK's activity cannot be understated. Wood’s investment style often acts as a leading indicator for retail investor interest in high-beta tech stocks. By rotating out of more stable, cash-flow-positive entities like Airbnb and Teradyne, ARK is essentially increasing the risk profile of its portfolio in exchange for higher potential growth. This strategy has historically led to massive outperformance during bull markets but significant drawdowns during periods of rising interest rates or sector rotation. As the Federal Reserve’s policy path remains a key driver of market sentiment in early 2026, ARK’s aggressive stance suggests that Wood believes the peak of the rate-hiking cycle is firmly in the rearview mirror, allowing growth stocks to once again take the lead.

Furthermore, the focus on Broadcom and AMD highlights a shift in the AI narrative from pure-play software to the underlying hardware that makes it possible. While software companies have dominated the headlines, the physical infrastructure required to run large language models remains a bottleneck. By securing larger positions in the companies that design and connect these chips, ARK is hedging its bets on which specific AI applications will ultimately win the market, focusing instead on the "picks and shovels" of the digital gold rush. This move into Broadcom, in particular, suggests a more nuanced approach to the semiconductor space, favoring companies with diversified revenue streams across enterprise software and networking.