Cathie Wood's Ark Invest is an innovation-focused asset management firm, and its portfolio is consequently packed with artificial intelligence (AI) stocks. In that context, readers may be surprised to learn that Wood and her team have been selling shares of Nvidia, Tesla, and in recent months, three companies widely considered to be at the forefront of AI innovation.

However, Ark still has a stake in all three, so I doubt the recent sales signal a lack of conviction. Instead, Nvidia, Tesla, and Alphabet have achieved year-to-date gains of 230%, 82%, and 51%, respectively. So Ark is probably rebalancing its portfolio by taking profits and redeploying them elsewhere.

For instance, the firm added to its stake in Twilio (NYSE: TWLO) in early November, plowing enough capital into the company that it now ranks as the ninth-largest holding in a portfolio comprising more than 120 stocks. That hints at high conviction.

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Source Fool.com