Cathie Wood, the head of Ark Investment Management, has increased her investment in Cerebras Systems Inc, a semiconductor company focused on AI computing. The purchase comes as shares of Cerebras have risen following news of a new AI data center in Finland, part of a broader expansion plan for the company. Wood’s firm, Ark Innovation ETF, bought 32,561 shares of Cerebras on September 8, according to daily trading data shared with TheStreet.
This latest move shows Wood’s continued focus on high-tech companies, especially those in artificial intelligence and related fields, according to thestreet.com. She has been adding to Cerebras positions while reducing her holdings in AMD, a major semiconductor company whose stock gained 5.9% on September 8. Cerebras went public in May and has since experienced a drop in share price, falling about 36% from its initial listing.
Despite the decline, the company reported second-quarter results that beat some expectations, even though revenue came in below analyst estimates. Cerebras posted Q2 revenue of $180 million, slightly below the $194 million expected by Wall Street analysts. However, the company’s core revenue and margins exceeded forecasts, which helped support its outlook for future growth.
Cerebras raised its full-year guidance after reporting better-than-expected performance in the second quarter. The company also forecast more than three times core revenue growth in fiscal 2027, which has analysts optimistic about its long-term potential. Wood’s approach to investing involves chasing momentum in tech stocks that she believes will drive future economic growth.
Her strategy has led to strong returns in some years, like the 153% gain in the Ark Innovation ETF during 2020. But this aggressive style also brings significant risk, as seen when the fund lost more than 60% in 2022 during a market downturn. Over the decade ending in 2025, the Ark Innovation ETF lost nearly $5 billion in investor wealth, according to Morningstar analyst Amy Arnott.
Despite these losses, Wood remains confident that AI will continue to fuel corporate profits and productivity gains. She compared the current AI buildout to the railroad expansion of the 1800s, suggesting that today’s technology is more solid than past ventures. Wood believes that AI-driven productivity is helping companies protect their margins, even as the broader economy faces challenges.
Not all investors agree with her optimism about AI’s long-term impact on business and profits. Still, Wall Street analysts continue to show confidence in Cerebras, with an average price target of $296 per share. This target implies around 50% upside from recent prices, based on data from TipRanks.
Cerebras is not among the top-10 holdings in the Ark Innovation ETF, which focuses more broadly on innovation-driven companies. The ETF’s portfolio includes a mix of AI, blockchain, biomedical, and robotics firms, reflecting Wood’s wide-ranging investment philosophy. Wood’s recent actions suggest she sees long-term value in Cerebras despite its current struggles.
She has been increasing her stake in the company while trimming other positions, showing her confidence in AI’s future trajectory. The semiconductor sector remains a key area of focus for investors as companies seek to capitalize on AI-driven demand. Cerebras’ expansion in Finland is part of a larger push to meet growing needs for AI computing infrastructure.
The first phase of the data center will have 50 megawatts of capacity and is already under construction. This development shows that Cerebras is actively working to scale its operations and meet demand from AI developers and businesses. Wood’s investment in Cerebras reflects her belief that AI will continue to reshape industries and drive corporate performance.
She sees the current wave of AI development as a transformative force with lasting economic benefits. While some investors remain cautious about the volatility in tech stocks, Wood’s approach continues to attract attention from those who follow her strategies. Her willingness to take on risk in pursuit of high-growth opportunities remains a defining feature of her investment style.
The latest move with Cerebras is another example of how she continues to shape the direction of her fund’s holdings.