The ARK Innovation ETF (ARKK) soared 5.12% in pre-market trading on Wednesday, following news that fund manager Cathie Wood is doubling down on major chipmakers despite growing concerns in the sector. This bold move appears to have reignited investor confidence in the tech-heavy ETF.

Cathie Wood's ARK Investment has been actively increasing its stakes in semiconductor giants Nvidia (NVDA) and Advanced Micro Devices (AMD). The fund's latest move includes the purchase of 11,000 shares of Nvidia, signaling a strong belief in the future of AI and high-performance computing. This investment strategy aligns with ARK's focus on disruptive innovation and could be driving the ETF's significant pre-market gains.

However, investors should note that this bullish stance comes amid growing concerns about chip export curbs and geopolitical tensions affecting the semiconductor industry. While Wood's track record has attracted many followers, the concentration on specific tech sectors could expose the fund to increased volatility. As always, market participants are advised to consider their risk tolerance when reacting to such pre-market movements.