Key Takeaways:
- Ark Invest trimmed its AMD position while adding Cerebras shares
- Cerebras raised $5.5 billion in its May 14 IPO at $185 a share
- The AI chipmaker now holds a 1.13% weighting in Ark Innovation
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Cathie Wood trims AMD stake to add Cerebras after $5.5B IPO
Cathie Wood's Ark Investment trimmed its Advanced Micro Devices stake and bought shares of Cerebras Systems after the AI chipmaker's $5.5 billion initial public offering, the firm's trading disclosures show.
Wood added Cerebras to the Ark Innovation ETF and the Ark Next Generation Internet ETF on May 22, May 26 and May 27, according to daily trade reports. The purchases came after Cerebras shares slipped 14% from their May 14 IPO closing price through May 27, offering a discount on the newly public company.
Cerebras now ranks as the 30th-largest holding in the $8.2 billion Ark Innovation fund with a 1.13% weighting, and 27th in the internet fund at 1.22%. By comparison, Nvidia — the world's leading AI chip designer — holds a 1.23% weighting in Ark Innovation and 1.07% in the internet fund, making Wood's bets on the two chipmakers roughly equal in size.
The IPO raised $5.5 billion through the sale of 30 million shares at $185 apiece, making it the largest public listing of the year. Cerebras shares surged 68% on their first day of trading before retreating.
Cerebras takes a different approach to the inference market than Nvidia or AMD. Instead of packaging chips with high-bandwidth memory, the company builds SRAM directly onto its wafer-scale processors, delivering greater memory bandwidth and faster speeds for certain AI workloads. The company's revenue grew to $510 million last year from $24 million in 2022, and its chips became available through Amazon Web Services this year.
Wood trimmed her AMD position during the same period, though the chipmaker remains Ark Innovation's second-largest holding. AMD has secured two $100 billion GPU commitments and is believed to have won Anthropic as an inference customer. The company's data center CPU business also stands to benefit as the GPU-to-CPU ratio narrows from 8:1 for training to 1:1 for agentic AI, a market AMD has pegged at $120 billion.
The trades signal Wood's conviction that Cerebras can carve out a meaningful share of the inference market, where demand for compute is high and customers often diversify across multiple chip suppliers. Investors will watch Cerebras' first earnings report as a public company for updates on customer adoption and gross margin trajectory.
This article is for informational purposes only and does not constitute investment advice.
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