Cathie Wood Bought Alibaba Stock Before Its Surge. Why ARK Is Betting on China Tech Again.

(Dreamstime)

Key Points

About This Summary

• Ark Invest’s Fintech Innovation and ARK Next Generation Internet ETFs purchased $16.3 million of Alibaba’s American depositary receipts on Monday.
• Alibaba’s ADRs surged over 8% on Wednesday following the company’s announcement of overseas data centers and increased AI spending.
• Alibaba unveiled its largest-ever language model, Qwen3-Max, and plans to partner with Nvidia for physical AI tools.

Timing is everything when it comes to investing.

Two exchange-traded funds managed by Ark Invest CEO Cathie Wood bought Alibaba stock earlier this week for the first time since 2021—and the move is already paying off.

The and ARK Next Generation Internet ETFs bought a combined $16.3 million worth of Alibaba’s American depositary receipts on Monday.

The Chinese ecommerce giant’s ADRs surged more than 8% in early trading Wednesday, after its Hong Kong shares jumped 9%. (The U.S.-listed shares rose 0.9% Monday and fell 0.7% Tuesday.)

Wood’s ARK funds sold nearly all of its Chinese stocks in 2021 amid a regulatory crackdown on the country’s tech sector.

But ARK is back in the game—its Autonomous Technology & Robotics ETF on Monday increased its holdings in Baidu , another tech and AI leader. ARK Invest did not immediately respond to Barron’s request for comment.

This week, Baidu’s ADRs have fallen 1.5% as of early Wednesday trading. Baidu’s ADRs are up 54% this year, while Alibaba’s have jumped more than 100%.

The surge Wednesday came after Alibaba made a sweeping announcement related to its artificial-intelligence business. The company said that it’s planning to open data centers overseas and ramp up AI spending, and also unveiled its largest-ever language model, Qwen3-Max.

That’s not all–CEO Eddie Wu said the company will be partnering with Nvidia to integrate its tools for physical AI, such as robots and self-driving cars, according to multiple media reports.

Alibaba has been expanding its AI ambitions in recent months. Along the way, its stock has gained momentum—and has certainly attracted the interest of Cathie Wood.

The China AI boom may be lagging behind the U.S., but it’s catching up as Alibaba looks set to be a major player.

Elsa Ohlen contributed to this article.

Write to Callum Keown at callum.keown@dowjones.com