Cathie Wood is making a bold bet on Broadcom Inc. (AVGO) just ahead of the chipmaker's next earnings report, and it's hard not to see this as a statement of intent. ARK Invest bought 39,020 shares of Broadcom on Monday, worth roughly $16.2 million based on the stock's $416.08 closing price, according to the firm's daily trading disclosures. The purchase was made through the ARK Innovation ETF (ARKK) and the ARK Autonomous Technology & Robotics ETF (ARKQ).
The timing is notable. Broadcom is scheduled to report fiscal third-quarter results on Sep. 3, giving investors several weeks to assess whether its accelerating AI business can deliver another earnings catalyst. This isn't just a routine portfolio tweak; it's a deliberate bet placed right before a potential inflection point.
Why Broadcom
Broadcom has emerged as one of the biggest beneficiaries of the AI infrastructure spending cycle, particularly through custom AI accelerators and networking chips. In its fiscal second quarter, Broadcom reported $22.19 billion in revenue, while AI semiconductor revenue surged 143% year over year to $10.8 billion. Management had projected AI semiconductor revenue to jump more than 200% year over year to $16 billion in fiscal Q3.
That growth could make the upcoming earnings report an important test of whether Broadcom can close the performance gap with the hottest semiconductor stocks. Broadcom shares are up about 20% year-to-date but have significantly lagged the Philadelphia Semiconductor Index, which has gained roughly 73%. The stock also remains well below its June peak after plunging following its last earnings report. That pullback may be precisely what has attracted ARK.
ARK Is Rotating Back Into AI
The Broadcom purchase fits a broader pattern in Wood's recent trading activity. On Monday, ARK also bought 122,422 Nvidia Corp (NVDA) shares worth roughly $26.6 million, spreading the purchases across ARKK, ARKQ, ARK Next Generation Internet ETF (ARKW), ARK Blockchain & Fintech Innovation ETF (ARKF) and ARK Space & Defense Innovation ETF (ARKX). The firm also added Cloudflare Inc (NET) and Teradyne Inc (TER).
Earlier in August, ARK bought nearly 293,000 Rocket Lab Corp (RKLB) shares, worth about $23.4 million, across ARKK, ARKQ and ARKX, while continuing to build its Cloudflare position. The pattern suggests Wood is selectively increasing exposure to companies she views as beneficiaries of long-duration technology trends rather than simply chasing the market's biggest winners.
ARKK Still Has Something to Prove
The Broadcom bet comes at a difficult time for ARKK. The ETF gained 35.49% in 2025, substantially beating the S&P 500's 17.88% return. But in 2026, ARKK has gained just 4.5% year-to-date, compared with about a 13% advance for the S&P 500. Its longer-term record is even more challenging. ARKK's five-year annualized return was around -7.70% as of Tuesday, versus 11.68% for the S&P 500, according to Morningstar data cited by The Street.
That makes Wood's latest Broadcom purchase more than another routine trade. It is a fresh bet that AI infrastructure spending can reignite the kind of growth that has historically driven ARK's strongest returns. For investors watching the ETF, Broadcom's fiscal Q3 earnings report could therefore be a key test of Wood's renewed AI conviction.
