On May 27, just 24 hours before Nvidia's "explosive" earnings report was announced, ARK Invest, a subsidiary of well-known Wall Street investor Cathie Wood (commonly known as Sister Wood), unexpectedly increased its holdings of 34543 shares of the above stocks, shocking the market.

Specifically, the simultaneous operation of Sister Mutou's flagship funds ARKK (increased by 21504 shares) and ARKW (increased by 13039 shares) pushed Nvidia's position rankings to 29th and 24th respectively.Behind this seemingly ordinary position adjustment, it tore ARK's strategic armor that has lasted for three years. Of the ten Nvidia transactions since November 2022, eight have been sell-offs, and the only two purchases have occurred in May 2025 (7th and 27th)-because of this, Sister Mutou's position adjustment was a big surprise.

Looking back on Wood Sister's way to Nvidia.In early 2024, she used the "valuation bubble theory" of semiconductors as a banner to liquidate Nvidia and reduce its holdings of TSMC, and instead invested heavily in software service providers such as UiPath and Twilio.Her theoretical framework seems indestructible: hardware is highly cyclical, and software is the value precipitation layer of the AI revolution.

However, industry reality has crushed this illusion with cold data-TSMC's net profit in 2024 soared 57% year-on-year, gross profit margin climbed to 59%, and expanded its capital expenditure plan to US$38 - 42 billion.The more fatal misjudgment lies in underestimating Nvidia's absolute dominance in the AI supply chain: TSMC's 3nm process and CoWoS packaging technology monopolize 90% of the world's AI GPU production capacity, and Nvidia is its largest customer.When Microsoft launched the US$115 billion "Stargate" AI project and Amazon planned US$150 billion in data center investment, Sister Mu suddenly realized that no matter how many terminal applications are implemented, their capital torrent will eventually flow into Nvidia's cash register.

Sister Mutou's increase in her holdings is not an isolated incident.

According to public information, ARKK bought 64,838 shares of Nvidia on May 7, and added another 107,661 shares on May 8. Together with 34,543 shares this time, the cumulative increase exceeded 200,000 shares during the month.What is even more profound is the increase in TSMC ADR on May 19-ARKK bought 123,587 shares in a single day, equivalent to 87% of the position held at the end of March, the largest in nearly a year.

According to the analysis, the key leverage that contributed to Mudou's transformation was valuation compromise: Nvidia's 2025 expected P/E ratio dropped to 20 times, a 24% correction from the high at the beginning of the year, hitting the "bubble burst point" that Mudou had publicly questioned.Even so, ARK's position remains hesitant-it accounts for less than 1.5% of ARKK's weight, far below Coinbase(8.2%) and Tesla (7.1%).