Reward 500 Tiger-coinsOn Thursday (March 26), U.S. markets took a sharp hit. The $NASDAQ(.IXIC)$ fell over 2%, dropping more than 500 points intraday, while the $S&P 500(.SPX)$ slid 1.7%, breaking below the 6,500 level, its lowest since early September.
📉Big Tech led the selloff. The “Mag7” index dropped nearly 3%, with $Meta Platforms, Inc.(META)$ down ~8% and $Alphabet(GOOG)$ falling over 3% after both companies were found liable in a social media addiction lawsuit.
At the same time, crypto markets tumbled. $Bitcoin(BTC.USD.CC)$ fell below $70,000, and over $330M in leveraged positions were liquidated in 24 hours — a clear sign of risk-off sentiment.
Meanwhile, $ARK Innovation ETF(ARKK)$ ARK Invest, led by Cathie Wood, disclosed its latest holdings report on Thursday, revealing significant reductions in major technology stocks.
👀So the key focus becomes:
Is this a warning sign to rotate out of tech, or a dip-buying opportunity?
In this article,we'll examines $ARK Innovation ETF(ARKK)$ ’s latest portfolio moves, including its major sell-offs, selective buying activity, and the broader implications for investors.
🔴 The Big Tech Dump: What $ARK Innovation ETF(ARKK)$ Sold
$ARK Innovation ETF(ARKK)$ reduced positions across multiple high-profile tech names — signaling caution amid valuation concerns and macro pressure.
-
Meta Platforms ( $Meta Platforms, Inc.(META)$ ): Sold 76,622 shares (approx. $42 million).
-
Legal Headwinds: $Meta Platforms, Inc.(META)$ recently lost a $3 million teen addiction/product liability lawsuit.
-
Financial Strain: The stock is buckling under the weight of a massive $135 billion AI spending plan.
-
Operational Stress: Ongoing layoffs, rising energy costs, and broader market weakness are heavily pressuring the stock.
-
-
Nvidia ( $NVIDIA(NVDA)$ ): Sold 155,441 shares (approx. $27.7 million).
-
Valuation Fears: Analysts are warning that AI companies are highly overvalued. High expectations are sparking fears of a sharp market correction.
-
Stretched Metrics: While $NVIDIA(NVDA)$ 's momentum is in the 79th percentile, its value ranks in the bottom 6th percentile, indicating an overheated premium.
-
-
AMD ( $Advanced Micro Devices(AMD)$ ): Sold 38,245 shares (approx. $7.8 million to $8.4 million).
-
Industry Bottlenecks: The semiconductor sector is battling severe headwinds, including processor shortages and rising operational prices.
-
-
Taiwan Semiconductor ( $Taiwan Semiconductor Manufacturing(TSM)$ ): Sold 15,696 shares (approx. $5.1 million).
-
Capacity Limits: Explosive AI demand is stretching TSMC's capacity to the absolute limit. It is expected to be a critical industry bottleneck until at least 2026.
-
-
Alphabet / Google ( $Alphabet(GOOG)$ ): Sold 9,046 shares (approx. $2.5 million).
-
Snowballing Legal Risks: A jury ruled YouTube responsible for intentionally designing an addictive app harmful to children, awarding a $3 million payout. Despite Section 230 protections, this opens the door to a wave of similar future lawsuits.
-
-
Broadcom ( $Broadcom(AVGO)$ ): Sold 8,648 shares (approx. $2.7 million).
-
Supply Chain Contagion: Despite winning a $970 million defense contract, severe shortages are spreading from core chips to secondary components like lasers and circuit boards.
-
-
Netflix ( $Netflix(NFLX)$ ): Sold 6,775 shares (approx. $632,000).
-
Consumer Pushback: Recent subscription price hikes, driven by an expanding content library and new business ventures are testing consumer loyalty.
-
🟢 What ARK Is Buying: Selective AI Bets
While dumping mega-cap tech, ARK didn't just hold cash. They aggressively reallocated capital into a targeted AI play:
-
Tempus AI ( $Taiwan Semiconductor Manufacturing(TSM)$ ): Bought 60,973 shares (approx. $2.85 million).
-
Steady Momentum: $ARK Innovation ETF(ARKK)$ is doubling down on this healthcare AI disruptor. This purchase continues a distinct, intentional pattern of accumulating Tempus AI shares, betting on niche AI applications over saturated mega-caps.
-
🔄 Other Notable Trades
Beyond the headlines, $ARK Innovation ETF(ARKK)$ actively trimmed positions across various other sectors and lesser-known names:
-
$ARK 21Shares Bitcoin ETF(ARKB)$ : Sold 495,000 shares amid a broader crypto wipeout.
-
$Deere(DE)$ : Sold 94,440 shares (approx. $5.45 million).
-
$Block, Inc.(XYZ)$ : Sold 86,372 shares (approx. $5.18 million).
-
$Roku Inc(ROKU)$ : Sold 75,721 shares (approx. $7.19 million).
-
$Archer Aviation Inc.(ACHR)$ : Sold 436,322 shares (approx. $2.42 million).
-
$Spotify Technology S.A.(SPOT)$ : Sold 2,141 shares.
-
$Recursion Pharmaceuticals, Inc.(RXRX)$ : Sold 19,132 shares (approx. $606,000).
🤔 Questions For You: How Are You Adjusting?
With ARK pivoting hard and the market throwing a tantrum, it's a crucial time to review our own strategies. I'd love to hear your take:
-
Are you treating this tech sell-off as a 2022-style unwind, or is this the dip you've been waiting to buy?
-
With Nvidia and AMD facing capacity constraints and valuation headwinds, are you shifting your AI allocation to smaller, emerging players like Tempus AI?
-
How are you hedging against the ongoing legal pressures facing social media giants like Meta and Google?
Leave your comments and win Tiger Coins!
For SG users only, welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
-
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
-
other helpful links:
Comments
What really caught my attention is ARK Invest aggressively trimming big tech like $NVIDIA(NVDA)$ and $Advanced Micro Devices(AMD)$ . To me, this looks less like panic selling and more like de-risking after a strong run, especially with valuations stretched and macro pressure building.
Personally, I’m not rushing to exit tech, but I’m also not blindly buying the dip. I’d rather stay selective — leaning toward niche AI plays and waiting for better entries in quality names instead of chasing crowded trades.
@Tiger_comments @TigerStars @TigerClub @Tiger_SG
Nvidia (NVDA) continues to face significant capacity constraints.
Reports indicate a redesign of the next-generation Feynman AI chip platform due to limited manufacturing capacity at TSMC, which is reportedly booked through 2028.
Despite these hurdles, Nvidia's valuation is often described as reasonable, with a forward P/E ratio of approximately 21 times.
AMD is also grappling with supply chain constraints affecting its CPU production.
However, analysts see 2026 as a potential inflection point for AMD's MI450 GPU revenue.
The stock is currently viewed as undervalued by some metrics, trading roughly 39% below its estimated fair value.
The Verdict: Implement "Regulatory Pair Trades" and pivot to "Administrative Immunity."
Direct hedging via puts is expensive; the smarter move is a structural pivot. We are offsetting exposure to "Front-end Tech" (subject to antitrust and social liability) by rotating into AI Infrastructure (e.g., Oracle or AWS). These "Back-end" utilities provide the backbone for AI without the direct consumer-facing regulatory heat. Additionally, maintaining a 15% cash "Volatility Option" allows for tactical entries if legal rulings trigger a temporary "liquidity gap" in the Mag 7.
The Verdict: Abandoning "Commoditized Compute" for "Proprietary Data Moats."
Nvidia and AMD are facing a "Law of Large Numbers" headwind and CoWoS capacity ceilings. The rotation into players like Tempus AI (TEM) represents a shift toward Vertical AI. While chips are the engine, Tempus owns the "fuel" (massive, proprietary clinical datasets). In a capital-constrained market, the premium is migrating from the companies that make the tools to those that own the data silos that AI models need to become specialized and profitable.
The Verdict: A "Duration Re-Rating" masquerading as a crash; it is a healthy deleveraging.
Unlike 2022, which was a blind P/E compression due to skyrocketing inflation, the current 10.9% correction is an earnings-quality shakeout. The S&P 500 Forward P/E has reset from 22x to a more digestible 19x. This is not a structural breakdown but a "valuation relief valve" releasing the pressure of overcrowded trades. For investors with a 12-month horizon, this provides a staged entry point into high-quality growth that was previously untouchable due to "nosebleed" valuations.