Cathie Wood Bets on Chinese Self-Driving Stocks, Trims SaaS and Defense Holdings
Amid Trump's proposal to impose new tariffs on eight European countries over the Greenland issue, risk-off sentiment intensified across global markets, driving gold and precious metals higher while U.S. stock futures declined.
Looking back at Cathie Wood's trades last Friday, she not only bought into TSMC and AMD, but the more significant signal was her full-scale bet on autonomous driving, particularly her strong conviction in Chinese autonomous driving companies.
Betting on Chinese autonomous driving startups:
$WeRide Inc.(WRD)$
$Pony AI Inc(PONY)$ : Purchased 133,604 shares. Pony AI has been public for over a year, making headway in the competitive race to commercialize autonomous driving. It's now a major player in China's AV sector.
$BYD Co., Ltd.(BYDDY)$
This demonstrates ARK Investment's strong optimism about the pace of Robotaxi commercialization in China. WeRide and Pony AI, as leaders in L4 autonomous driving, combined with BYD's vehicle manufacturing capabilities, create a winning formula.
Additionally, ARK Investments added 5,542 shares of $Taiwan Semiconductor Manufacturing(TSM)$
Sell Side: Reduced positions in SaaS and defense stocks
Cathie Wood sold 98,395 shares of $Kratos Defense & Security Solutions (KTOS.US)$, 24,597 shares of $Unity Software (U.US)$, and 993 shares of $Intuit (INTU.US)$.
The market views this as Cathie Wood rotating out of select SaaS and legacy defense stocks to double down on 'hard tech' and 'AI physicalization' opportunities.
Additionally, a basket of SaaS stocks tracked by Morgan Stanley has fallen roughly 15% so far this year, following an 11% drop in 2025. That marks the worst start to a year for the group since 2022. The immediate trigger was renewed anxiety after AI startup Anthropic unveiled a new tool, Claude Cowork, on January 12. This research preview, designed to automate complex workplace tasks, reignited fears that AI agents could eventually render entire software categories obsolete.
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