As of March 27, 2026, East Eight Zone time, the post-market disclosure of position changes in the US stock market shows that Ark Invest has made directional adjustments to its portfolio over two consecutive trading days: reducing its holdings in AI chip leaders such as NVIDIA and AMD, while increasing stakes in biotech company Arcturus Therapeutics. Public data indicates that the reduction of approximately 58,000 shares of NVIDIA and about 19,000 shares of AMD accounts for roughly 0.1%-0.15% of the total value of the related funds, which is far from reaching a liquidation level, resembling more of a smooth structural rebalancing. Meanwhile, the shift of funds towards gene therapy also brings to light the main conflict between "overvalued AI hardware" and "long-term value in biotechnology": within innovative assets that are both high beta, Ark is attempting to redraw the line between bubble caution and long-term bets.

The True Scale of Targeting AI Chip Leaders Over Two Days

On March 26, East Eight Zone time, historical trading data recorded shows that Ark significantly sold 155,441 shares of NVIDIA and 38,245 shares of AMD, an action viewed in the market as a concentrated reduction in the AI chip sector. Following up on March 27, Ark continued to reduce its holdings from the previous day, with the latest disclosure showing approximately 58,000 shares of NVIDIA and about 19,000 shares of AMD sold, creating a continuity in rhythm of "substantial reduction on Thursday, continued reduction on Friday," rather than an isolated event. Looking at the two days combined, the reduction showcases a rhythm adjustment path from fast to slow.

It should be emphasized that according to data cited in the briefing, the cumulative market value corresponding to this round of reduction only accounts for about 0.1%-0.15% of the total value of the related funds. This indicates that it is more of a systematic weight pruning at high levels, rather than a directional denial of the AI chip sector. NVIDIA and AMD remain important components of the portfolio, making the term "liquidation" clearly inconsistent with the facts. Given this premise, Ark's marginal impact on long positions in AI chips is mainly reflected in: rhythmically throwing out some chips to reduce tail risks brought by over-concentration and overheated valuations in a single sector, while also freeing up limited but real allocation space for new sectors.

From the trading path perspective, the large sell-off on March 26 appears to be a proactive repositioning of holdings, while the small follow-up on March 27 belongs to a "confirmation" rebalancing, extending the previous day's large actions into a complete portfolio adjustment segment. For the market, this gradual and not one-time large withdrawal conveys a judgment on the phase risks of AI chips and aims to minimize the impact on stock prices, in line with Ark's consistent execution style of "batch processing" on liquidity-sensitive targets.

From Bubble Caution to Profit Realization Valuation Considerations

Some market opinions state that “the consecutive two-day reductions reflect a cautious attitude towards the valuation bubble of AI hardware”. After a year of accelerated price increases for NVIDIA and AMD, the AI chip sector has widely been labeled with "high expectations, high valuations." Although the briefing did not provide precise earnings per share breakdowns, in the consensus of major investors, both companies are currently in historically high valuation ranges, demanding extremely high performance fulfillment going forward. For Ark, which centers around "disruptive innovation," continuing to add at this point means pursuing higher upside potential while short-term gains have already been substantial, causing the risk-reward ratio to become increasingly asymmetrical.

Therefore, this round of reduction can be understood more as a profit-taking + risk-hedging combination decision: in the context where AI hardware remains in the mid to long-term main track, appropriately locking in some paper profits transfers weight from platforms with already high valuations to relatively earlier biotech sectors, where valuations have not yet fully reflected long-term narratives. Historically, Ark often adopts a "lengthening cycle of high selling and low buying" model on high beta growth stocks: entering heavily during early fast expansion stages, gradually reducing in batches to realize profits as valuations and emotions rise, and once macro or industry adjustments compress valuations, re-positioning as opportunities arise, taking time for space and capturing returns through volatility. This two-day reduction in AI chip positions aligns with this operational framework—neither a rapid retreat nor simply chasing trends, but a curve rebalancing action that extends the time dimension.

Increased Holdings in Arcturus: Long-term Chips in Gene Therapy

Corresponding to the reduction in AI chips, on March 27, Ark bought approximately 48,600 shares of biotech company Arcturus Therapeutics. Under the premise that the reduction scale only accounts for 0.1%-0.15% of the total value of the fund, this buying action is not exaggerated in absolute amount, but it holds significant signal meaning regarding directional choices: funds are shifting from mature leaders in AI hardware to gene therapy companies that are in the stages of research and clinical advancement. Market interpretations suggest that “the biotech purchase shows a long-term bet on the gene therapy sector”, indicating that Ark is not merely parking the freed-up funds in defensive assets but is continuing to internally rotate within disruptive innovation areas with high uncertainty and high potential returns.

Within Ark's framework of innovative themes, gene therapy and the broader biotech sector have long been seen as significant pillar directions alongside AI, automation, and digitalization. Unlike AI hardware, which has been fully priced, gene therapy companies are generally still in the early stages of commercialization or even pre-commercialization, with limited short-term profitability; however, once core pipelines achieve critical breakthroughs in clinical and regulatory pathways, their revenue and valuation boosts could be substantial. Targets like Arcturus feature typical characteristics of “high volatility - high elasticity,” aligning closely with Ark's preference for potential exponential growth assets.

Thus, the purchase of Arcturus is more of a long-term chip aimed at the next technology cycle: as AI hardware has entered a deeply institutionalized and fully valued phase, some victory fruits are reinvested into the still-nascent biotech sector, aiming to gain a new source of excess returns in the coming years. Although the briefing did not disclose specific purchase amounts or fund distributions, this does not prevent viewing this increase in holdings as a tactical strengthening of Ark's focus on healthcare and gene therapy.

Industry Rotation Path Under Disruptive Innovation Framework

From Ark's self-positioning of "disruptive innovation" investment framework, the logical rotation from AI hardware to biotech is not a shift between innovation and tradition but a curved redistribution between different stages of innovation tracks. AI chips have now evolved from "cutting-edge technology" a few years ago to a consensus main line in the capital market, with clear pathways for industrial implementation, a relatively stable landscape for giants, declining technological uncertainties, and rising valuation uncertainties; conversely, gene therapy and the broader biotech sector are still in the early stages of technical differentiation and ecological choice, with significant scientific risks, yet valuations are often not fully crowded, offering narrative space and prices not fully aligned.

If we place technological maturity and valuation stages on the same coordinate system, AI chips are closer to "mid-technical, late-valuation," while gene therapy represents "early-mid technical, mid-early valuation." In this combination, Ark, by reducing some AI hardware weight and increasing exposure to biotech, effectively pushes forward a step on the timeline: the "old innovation stars" that have already gained paper profits yield slightly to the "next generation of innovative targets" that have the potential to start telling new stories. This represents not only a tactical rebalancing—mitigating the drag on portfolio volatility from a single sector's overheated valuations—but also a possible strategic focus adjustment: within disruptive innovation, leaning from consensus AI hardware toward life sciences that are still at the early end of the innovation curve.

The implications for subsequent allocations are that if this round of rotations continues, Ark's innovative portfolio may present a more pronounced "multi-engine" characteristic: AI continues to provide performance and cash flow support, while biotechnology carries potential revaluation elasticity. For funds focused on Ark's direction, observing changes in the weight of the biotech sector within its product lines in the coming months, as well as positional adjustments rhythm in the context of AI hardware retracement and rebound cycles, will be a key dimension for judging whether this portfolio adjustment is merely a one-time tactical move or indicates a shift in mid to long-term strategic focus.

Market Linkage Effects on Funds and Sentiment Levels

In terms of funds and sentiment, the reduction behavior of leading actively managed institutions is often amplified into sector signals. Ark's consecutive two-day reduction of positions in NVIDIA and AMD temporarily casts a "high-level caution" shadow over the bullish sentiment in AI-related sectors, especially in an environment where prior gains were significant and the market is highly sensitive to performance and guidance; such actions are easily interpreted as a phase denial of valuations, leading some following funds to choose to lock in profits, thus affecting the funds flow toward related ETFs and individual stocks. This emotional feedback may not immediately trigger a trend reversal, but is sufficient to marginally suppress high chasing impulses and widen volatility ranges.

In contrast, increasing allocations to biotechnology, especially the gene therapy sub-sector, may create a certain relative strong expectation for related thematic ETFs and key stocks. As the market captures the rotation hint of "institutions moving from AI to biotech," some thematic funds may seek "beta alternatives" within ARK series products, other biotech ETFs, and leading biotech stocks, creating an internal performance divergence of a "technology growth and pharmaceutical biotech seesaw" within sectors. While current public information is insufficient to quantify the scale of this style switch, in a macro environment of high interest rates and high volatility, the relative performance differences between various growth styles are becoming an important battleground for active fund strategies.

On a broader dimension, this action may also trigger a new round of style-switch discussions between traditional tech growth and pharmaceutical biotech: as the market begins to question the sustainability of AI hardware valuations, the biotech direction, with its long-term structural demand (such as aging population and medical innovations), is easily seen as a new growth "defensive haven." Ark's slight movement from AI chips to gene therapy has strengthened the market visibility of this narrative, providing a reference sample for subsequent funds to make relative allocations between the two sectors.

Understanding Ark's Next Direction from a Single Portfolio Adjustment

In summary, Ark's reduction in positions in NVIDIA and AMD, along with the increase in Arcturus holdings signals a core message: without giving up on the high-growth innovation framework, they are shifting risk preferences from the highly crowded AI hardware partly towards the biotech and gene therapy sectors whose valuations have yet to be fully exploited. The reduction size accounts for only about 0.1%-0.15% of the fund's total value, indicating that Ark is not denying the direction of the AI chip main line, but aims to free up space for the next phase of innovative themes by moderately realizing profits and reducing excessive concentration in a single sector; while the acquisition of Arcturus reflects their intention to continue "re-leveraging" within high uncertainty and high potential return areas.

It is also necessary to recognize that current public information has notable gaps and uncertainties: the briefing did not disclose the specific amount purchased for ARCT, nor did it provide precise reduction data for Ark on other tech stocks (like META, ROKU, etc.); the details about the paths through specific ETF products were also marked as pending verification. In the absence of comprehensive subscription and redemption and weight change data, relying solely on single or two-day position disclosures makes it difficult to quantitatively conclude Ark's long-term strategies, nor can it escalate to an absolute narrative of "abandoning AI and switching to biotech."

For investors, while paying attention to Ark's direction, it is essential to maintain independent valuation and risk judgments:

● For high valuation growth stocks like AI chips, the focus should not be solely on the reduction actions of a single institution, but rather on whether the performance fulfillment rhythm and industry competition landscape can support current valuation levels, and once expectations diverge from reality, whether the drawdown magnitude and holding period are within their capacity.

● For biotech and gene therapy sectors, one must recognize that the "high elasticity is preceded by a high failure rate" structural feature, where short-term prices are more driven by clinical and regulatory nodes and sentiments rather than stable cash flows; thus, before following institutional increases, one should assess their adaptation to high volatility and the proportion of these high-risk assets in their portfolio.

Within the grand framework of disruptive innovation, every portfolio adjustment by Ark seeks to find new equilibrium between volatility and returns. Understanding this subtle shift from AI chips to biotech is more about extracting a principle fitting oneself: follow the trend without blindly conforming, valuing the long-term logical trajectory while maintaining the necessary calmness and reverence during every round of high valuation phases.

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