How Cathie Wood Positioned Her Tech Bets On Market Dips: January 8 Trading Roundup

Cathie Wood’s investment strategy revealed itself through significant portfolio adjustments on January 8, with ARK Invest deploying capital into semiconductor and aviation technology while simultaneously trimming exposure to defense-focused positions. The fund’s trading activity demonstrates Wood’s characteristic approach of capitalizing on market weakness in innovative sectors while taking profits from recent outperformers.

Strategic Purchases in Semiconductors and Electric Aviation

ARK Invest’s most substantial acquisition involved semiconductor leader Broadcom, with the fund acquiring 31,573 shares worth $10.4 million through the ARK Next Generation Internet ETF. The purchase timing proved opportunistic, as Broadcom shares had declined 3.2% during broader market weakness that day.

Beyond traditional chip stocks, Cathie Wood’s portfolio expanded into next-generation transportation. ARK added 162,270 shares of Joby Aviation for $2.5 million through the ARK Space Exploration & Innovation ETF, following the company’s announcement of a 700,000-square-foot manufacturing facility in Dayton, Ohio dedicated to eVTOL aircraft production. On the same day, the fund acquired 73,097 shares of Archer Aviation after the company unveiled a strategic partnership with Nvidia focused on integrating AI systems into next-generation aircraft. Archer shares surged 3.4% on the partnership news.

The genomics sector also attracted Wood’s attention, with ARK purchasing 22,395 shares of Personalis for the ARK Genomic Revolution ETF. The biotech company’s stock had retreated 10.4% before the fund’s entry point, presenting another classic buying-on-weakness opportunity that aligns with Wood’s investment philosophy.

Reducing Exposure to Defense and Defense-Adjacent Names

On the divestment side, ARK made its most notable reduction in Palantir Technologies, offloading $10.4 million worth—58,741 shares—of the AI software company. The timing coincided with President Trump’s proposal for a $1.5 trillion defense budget expansion through 2027. Despite this potential tailwind for defense contractors, Palantir’s stock declined 2.7% on January 8, and Wood opted to reduce her position.

Accompanying the Palantir sale, ARK trimmed smaller holdings in other defense and space-focused companies including Aerovironment, Rocket Lab, and Kratos Defense. This strategic reduction suggested Wood’s reassessment of near-term defense sector dynamics despite budgetary tailwinds.

Profit-Taking in Momentum Plays

A day earlier on January 7, ARK divested $2.29 million in Roku stock by offloading 20,203 shares. The streaming platform had appreciated 10% over the preceding month and delivered a robust 42% return in 2025, outpacing the S&P 500. Despite the sale, Roku remains among the top holdings in the ARK Innovation ETF, which itself gained nearly 38% in 2025 largely through exposure to AI and software innovations.

The January trading activity underscores how Cathie Wood’s stocks operate within a disciplined framework: buying disruptive technology during price corrections while systematically harvesting gains from positions that have appreciated significantly. This rebalancing between accumulation and profit-taking maintains the fund’s focus on long-term innovation while managing near-term valuations.