Cathie Wood's ARK Invest made significant portfolio shifts, selling Tesla and deploying $50 million to buy the dip in the semiconductor company. This major investment highlights the firm's increased focus on the stock as a top AI play. The purchase was part of a broader sector rally fueled by strong earnings and guidance from industry giant Taiwan Semiconductor, which signaled robust AI demand. However, the stock faced negative pressure from separate reports that China was targeting foreign cybersecurity software.