Cathie Wood Goes Bargain Hunting: 2 Stocks She Just Bought
Key Points
Hot off Cerebras's recent IPO, Ark Invest recently purchased shares in the AI stock.
Ark has also been loading up on Bullish following the cryptocurrency company's recent valuation pullback.
- 10 stocks we like better than Cerebras Systems ›
Ark Invest founder and CEO Cathie Wood has helped build a collection of exchange-traded funds (ETFs) focused largely on potentially disruptive technology, finance, and biotech plays. While the funds have a history of uneven performance, some of the components in these ETFs have gone on to be massive winners.
Wood and the analyst teams at Ark tend to take a long-term view and aim to identify disruptive players that have the potential to upend industries and deliver huge returns over the long haul. Read on for a look at two stocks that Ark Invest just purchased for its funds.
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1. Cerebras Systems
Cerebras Systems (NASDAQ: CBRS) had its initial public offering on May 14 and has seen big gains since its public debut. Even after seeing huge gains on its first day of trading, the company's share price has risen roughly 39% since the market close on its IPO day. Wood and the Ark Invest team clearly seem to think the company's share price can keep surging.
Ark Invest bought Cerebras shares near the company's IPO window, and Wood's company has continued to purchase additional shares of the stock. On May 14, Ark Invest bought 105,616 shares of Cerebras stock across its Ark Innovation ETF and its Ark Next Generation Internet ETF. The next day, Ark Invest purchased an additional 149,716 shares for its ETFs.
Cerebras is a designer of custom artificial intelligence (AI) chips, and it's attracted a lot of investor attention thanks to the high-performance AI inference technologies enabled by its semiconductor designs. Thanks to strong demand for the company's AI accelerator chips, the business has been posting very strong growth. Sales increased 76% year over year in 2025 to hit $510 million, and it's possible that growth could actually see significant acceleration from there.
In some respects, Cerebras's high-end chips can seemingly deliver performance that is far better than even Nvidia's high-end graphics processing units. The company's current market capitalization of roughly $56 billion already prices in some strong growth, but sky-high demand in the AI chip market leaves the door open for potentially explosive gains. While Cerebras is a high-risk, high-reward play, Wood and Ark Invest seem to have a lot of confidence in the stock.
2. Bullish
Bullish (NYSE: BLSH) is a cryptocurrency and fintech services specialist that recently reported its first-quarter results. Unfortunately, the company's sales and earnings performance in the period fell short of the market's expectations.
With the Q1 report that it published on May 14, Bullish announced that it recorded a loss of $3.85 per share on sales of $92.8 million. The company's loss per share came in $1.62 higher than expected, and its sales missed the average analyst forecast by roughly $1.4 million.
Along with some declines in the price of Bitcoin, the company has faced some significant valuation pressures recently. Bullish is now down roughly 7% year to date as of this writing and 53% from its lifetime high. On the other hand, Wood and the Ark Invest team clearly viewed recent pullbacks as buying opportunities.
Following sell-offs for Bullish, Ark moved to increase its investment position in the company across three of its ETFs. On May 21 and May 22 alone, the investment company purchased more than 164,000 shares of Bullish stock for the ARK Innovation ETF, the ARK Next Generation Internet ETF, and the Ark Blockchain & Fintech Innovation ETF.
Wood has famously taken massively bullish long-term stances on Bitcoin, setting a target for a price of $1.2 million per token for 2030. In addition to offering a cryptocurrency trading platform and storage solutions, Bullish also has a substantial Bitcoin treasury. At the end of the first quarter, the company reported holding roughly 24,400 Bitcoin tokens.
If adoption for Bitcoin and other cryptocurrencies continues to rise and pushes valuations for top tokens higher, Bullish could go on to see huge valuation gains. Following recent valuation contractions for the company's stock, Wood and her team of analysts are betting that the market is significantly underestimating the crypto specialist's growth potential.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Nvidia. The Motley Fool has a disclosure policy.
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