ARK Invest, led by Cathie Wood, has trimmed its position in Roblox Corp. and significantly boosted its holdings in Nvidia Corp. in the latest quarterly portfolio update.
The move underscores a broader shift within ARK’s flagship ARK Innovation ETF (ARKK), which has increasingly favored high-growth technology stocks over the past year. Nvidia, a key beneficiary of the artificial intelligence boom, saw its weighting in ARKK rise substantially, while Roblox, a metaverse-focused gaming platform, was reduced.
ARK’s latest 13F filing with the U.S. Securities and Exchange Commission revealed the changes, though the exact dollar amounts and percentage adjustments were not disclosed. The filing provides a snapshot of ARK’s equity holdings as of March 31.
Roblox, which has faced volatility amid shifting consumer spending trends and competition in the gaming sector, saw its allocation reduced in ARK’s portfolios. The company’s stock has underperformed broader tech benchmarks in recent months, contributing to the decision to pare back exposure.
Nvidia, by contrast, has emerged as a top holding across several of ARK’s funds, reflecting confidence in its dominance in AI chip production and its pivotal role in the data center and gaming markets. The company’s stock has surged more than 150% over the past year, driven by demand for AI infrastructure.
ARK’s strategy has drawn both praise for its early bets on disruptive innovation and criticism for its concentrated, high-volatility approach. The latest adjustments align with Wood’s long-standing thesis that technology-driven disruption will outperform traditional sectors over the long term.
The portfolio changes come as ARKK has struggled to regain its footing after a sharp drawdown in 2022, when high-growth tech stocks faced steep declines. While the ETF has recovered some ground in 2024, it remains below its pre-2022 peaks.
ARK did not immediately respond to requests for comment on the portfolio adjustments.
