The ARK Innovation ETF (ARKK) experienced a significant surge of 5.80% in pre-market trading on Wednesday, as investors responded positively to fund manager Cathie Wood's bold move to increase stakes in major semiconductor companies. This rally comes despite growing concerns in the chip sector, highlighting the market's confidence in Wood's investment strategy.

ARK Investment, led by Wood, has been actively boosting its positions in tech giants Nvidia (NVDA) and Advanced Micro Devices (AMD). Reports indicate that the fund recently acquired 11,000 shares of Nvidia, signaling a strong belief in the future of artificial intelligence and high-performance computing. This investment aligns with ARK's focus on disruptive innovation, which appears to be driving the ETF's impressive gains.

While Wood's bullish stance on chipmakers comes amid concerns about chip export curbs and geopolitical tensions affecting the semiconductor industry, investors seem to be backing her contrarian approach. The fund's strategy of concentrating on specific tech sectors, particularly those at the forefront of AI and advanced computing, has reignited investor enthusiasm. However, market participants should remain aware that this focused approach could potentially lead to increased volatility in the fund's performance.