The ARK Innovation ETF (ARKK) soared 5.12% in pre-market trading on Wednesday, as investors reacted positively to fund manager Cathie Wood's latest investment moves. Wood's ARK Investment has been doubling down on chipmakers, particularly Nvidia (NVDA) and Advanced Micro Devices (AMD), despite growing concerns over chip export restrictions.

According to recent reports, ARK Investment purchased 11,000 shares of Nvidia, signaling Wood's confidence in the semiconductor sector. This move comes at a time when the chip industry faces potential headwinds from regulatory challenges, yet Wood appears to be taking a contrarian stance, betting on the long-term growth potential of these tech giants.

The pre-market rally in ARKK suggests that investors are aligning with Wood's optimistic outlook on the tech sector, particularly in areas like artificial intelligence and advanced computing. However, it's worth noting that Wood's investment strategy also includes divesting from some other tech stocks, as reports indicate she has been reducing positions in Microsoft. This rebalancing act highlights the dynamic nature of ARK's investment approach and its potential impact on the fund's performance.