In a significant shift for one of Wall Street's most prominent investors, Cathie Wood's Ark Invest offloaded millions in shares of leading technology companies on Thursday, March 26, 2026, including major players in the artificial intelligence sector. The sales, which targeted Nvidia, Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing Company (TSMC), Broadcom, Alphabet (Google's parent), and Netflix, totaled tens of millions of dollars and signal potential cooling enthusiasm for the so-called AI darlings amid growing concerns about overvaluation and supply chain strains.
Ark Invest, known for its aggressive bets on disruptive innovation, reduced its position in Nvidia by selling 154,441 shares across its flagship exchange-traded funds: ARKF, ARKK, and ARKW. At a closing price of $171.24 per share, the transaction was valued at approximately $26.6 million. This move comes as Nvidia has been a cornerstone of the AI boom, powering much of the computational demand for machine learning models. However, according to Benzinga reports, the sale aligns with broader market worries articulated by New York University professor Scott Galloway, who has warned of potential overvaluation in AI-centric companies. Galloway has cautioned that the tech sector's high expectations "could lead to significant market corrections," highlighting the risks of inflated valuations in a rapidly evolving industry.
The divestment from AMD followed a similar pattern, with Ark selling 38,245 shares through ARKK and ARKW for about $7.8 million, based on a closing price of $203.77. AMD, a key competitor to Nvidia in the semiconductor space, has faced volatility due to industry challenges such as price increases and processor shortages. These issues have been exacerbated by the surging demand for AI hardware, which has strained global supply chains. Analysts note that while AMD benefits from the AI tailwind, ongoing disruptions could temper short-term gains.
Ark's actions extended to the manufacturing side of the AI ecosystem, with the sale of 15,696 shares of TSMC through ARKK, amounting to roughly $5.1 million. TSMC, the world's largest contract chipmaker, is at the heart of the supply crunch. Broadcom, another chip giant, recently issued a stark warning about the situation, stating that surging AI demand was straining the supply chain, with TSMC hitting production capacity limits and emerging as a key bottleneck through 2026. The company added that shortages were spreading beyond chips to components like lasers and circuit boards, while customers increasingly locked in long-term supply deals to secure capacity. This perspective underscores the structural challenges facing the semiconductor industry as it races to meet explosive growth in AI applications.
Broadcom itself was not spared, as Ark sold 8,648 shares across ARKK and ARKW for approximately $2.7 million at a closing price of $309.42. Despite the sale, Broadcom has positive developments, including a recent $970 million defense deal that enhances its software capabilities for government agencies. This contract, announced earlier in the month, positions Broadcom to expand its footprint in secure communications and data processing for national security purposes, potentially offsetting some AI-related pressures.
Turning to big tech platforms, Ark reduced its stake in Alphabet by selling 9,046 Class C shares through ARKK and ARKW, valued at about $2.5 million with shares closing at $280.74. Alphabet, which encompasses Google, has been under scrutiny following a recent antitrust ruling that deemed its search practices monopolistic. The decision, handed down by a federal judge in Washington, D.C., could expose Google to broader legal risks, with an appeal likely forthcoming. Legal experts suggest the ruling might pave the way for similar lawsuits, even as Section 230 protections shield some online platforms from liability. Ark's timing in trimming its position may reflect caution amid these regulatory headwinds.
Although the headline-grabbing sales focused on AI and search giants, Ark also offloaded shares in streaming leader Netflix, selling 6,775 shares through ARKW for $632,243 at a closing price of $93.32. Netflix has been navigating a competitive landscape by increasing subscription prices, a move justified by executives as necessary to support a growing content slate and new ventures into live events and gaming. CEO Ted Sarandos stated in a recent earnings call that these price adjustments would fund ambitious projects, including high-profile sports broadcasting deals, aiming to boost subscriber growth in a maturing market.
The collective sales paint a picture of Ark Invest recalibrating its portfolio away from some of its heaviest tech concentrations. Cathie Wood, Ark's founder and CEO, has long championed thematic investing in areas like AI, genomics, and electric vehicles, but recent market dynamics appear to be prompting adjustments. Benzinga Edge Stock Rankings indicate that Nvidia, for instance, scores in the 79th percentile for momentum but lags in the 6th percentile for value, suggesting investors are pricing in aggressive growth expectations that may not hold.
Market observers interpret these moves as a sign that even bullish voices like Wood are hedging against potential downturns. The AI sector has seen meteoric rises since the launch of generative tools like ChatGPT in late 2022, driving stock prices to record highs. Yet, with interest rates remaining elevated and geopolitical tensions affecting Taiwan-based TSMC, vulnerabilities are mounting. A report from the Semiconductor Industry Association earlier this year highlighted that global chip demand could outpace supply by 20% through 2025, fueling the bottlenecks Broadcom described.
From a broader perspective, Ark's strategy has drawn both praise and criticism. Supporters argue that Wood's funds have delivered outsized returns during tech rallies, with ARKK posting gains of over 150% in 2020 alone. Detractors, however, point to underperformance in down markets, as the funds' concentrated bets amplify volatility. In response to questions about the recent sales, an Ark spokesperson told Benzinga that the firm continually rebalances to align with its long-term innovation thesis, without commenting on specific trades.
The sales occur against a backdrop of mixed signals from the tech sector. While AI investments pour in—Microsoft and Amazon have committed billions to data centers—warning signs persist. Scott Galloway, in a podcast episode last week, elaborated on his concerns, saying, "The AI hype is real, but so is the bubble risk; we're seeing valuations that defy traditional metrics." His views resonate with investors wary of a repeat of the dot-com bust, when similar enthusiasm led to sharp corrections.
Looking ahead, the implications for the market could be substantial. If Ark's actions foreshadow a broader sell-off, it might pressure stock prices for these companies, particularly as quarterly earnings approach. Nvidia is set to report results next month, where executives will likely address supply constraints and demand forecasts. Similarly, AMD's upcoming investor day in Austin, Texas, could provide clarity on production ramps.
Regulatory developments add another layer of uncertainty. The Alphabet ruling, if upheld on appeal, might force structural changes at Google, affecting ad revenue streams that fund AI research. Meanwhile, Netflix's price hikes have sparked subscriber backlash in some markets, with churn rates ticking up according to internal metrics reported by Variety.
As Ark Invest navigates these waters, the sales serve as a reminder of the tech sector's dual nature: immense opportunity laced with risk. With global AI spending projected to reach $200 billion by 2025 according to IDC Research, the stakes remain high. Investors will watch closely to see if Wood doubles down on other themes or if this marks a more defensive posture in an increasingly volatile landscape.
In the end, Thursday's transactions underscore the fluid nature of investment strategies in a fast-changing world. While Ark has trimmed its exposure, the underlying drivers of AI innovation continue unabated, promising both challenges and breakthroughs for the industry.