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- ARK Invest purchased another $21.3 million worth of SpaceX shares despite recent price weakness.
- AI bubble concerns are resurfacing as economists warn of broader market risks if expectations fall short.
- Analysts remain divided, with some trimming AI exposure while others stay optimistic about long-term growth.
Cathie Wood is continuing to increase ARK Invest’s exposure to SpaceX, even as broader market sentiment weakens over growing concerns that artificial intelligence valuations may have become overheated. The latest purchase comes as SpaceX shares remain under pressure, testing levels close to their reported IPO price while investors weigh both technical weakness and long-term growth prospects.
The move highlights Wood’s willingness to buy into market weakness, reinforcing her reputation for backing disruptive companies despite short-term volatility.
ARK Invest Adds More SpaceX Stock
According to ARK Invest’s latest trading disclosures, the firm acquired 130,241 shares of SpaceX on July 13 across three of its flagship exchange-traded funds: ARK Innovation ETF (ARKK), ARK Autonomous Technology & Robotics ETF (ARKQ), and ARK Next Generation Internet ETF (ARKW).
The combined purchase was valued at roughly $21.3 million.
The buying comes after another major accumulation last week, when ARK added approximately $52 million worth of SpaceX shares. Despite those purchases, the stock continued to slide, closing at $139.14 after falling more than 4% during Monday’s session.
From a technical perspective, SpaceX now faces an important test. The stock has slipped below the previously significant $150 level, while $145 has turned into a resistance zone. If selling pressure continues, shares could move closer to the reported IPO price of $135.
Technical indicators also suggest caution. The MACD has turned negative, signaling that bearish momentum remains in control for now.
AI Bubble Concerns Return to Wall Street
While ARK continues buying, concerns surrounding the AI sector have resurfaced after a draft report from the U.S. Treasury examined the risks of an AI-driven market bubble.
The report does not predict an immediate collapse. Instead, it outlines a downside scenario in which AI companies fail to deliver the productivity gains and profits investors currently expect.
Researchers warned that any major slowdown could extend well beyond technology stocks. Private credit markets, semiconductor companies, cloud providers, utilities, and businesses financing large-scale data center projects could all face pressure if AI investment cools significantly.
Additional risks identified include supply chain disruptions, geopolitical uncertainty, electricity constraints, and challenges in funding expanding data center infrastructure.
Analysts Split on the AI Outlook
Market experts remain divided over whether AI valuations have reached unsustainable levels.
Some analysts argue the rally still resembles a bubble that continues to inflate, pointing to rising capital spending and shrinking cash reserves among major technology companies. They also note that technology investment now represents a larger share of the U.S. economy than during the dot-com era.
Others are taking a more selective approach. BlackRock’s Rick Rieder recently said the firm is reducing exposure to companies directly tied to AI development while increasing investments in businesses expected to benefit indirectly from long-term AI adoption.
Also Read: Cathie Wood Buys $38 Million in Tesla After 7% Drop—Here’s Why It Matters
Cathie Wood‘s latest SpaceX purchase reflects continued confidence in the company’s long-term potential despite ongoing market weakness. At the same time, renewed debate over AI valuations is creating fresh uncertainty across financial markets. Whether AI delivers the economic gains investors expect—or falls short—could shape market leadership in the months ahead, while SpaceX remains one of ARK Invest’s highest-conviction bets.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
