Key facts
- ARK Invest acquired 130,241 SpaceX shares for approximately $21.3 million.
- SpaceX stock price fell to near its IPO price of $135.
- The purchases were made by ARK Innovation ETF, ARK Autonomous Technology & Robotics ETF, and ARK Next Generation Internet ETF.
- A U.S. Treasury report warned of AI's potential to destabilize the economy, comparing it to the dot-com bubble.
- Some analysts believe the AI sector is experiencing a bubble, with tech investments nearing 5% of U.S. GDP.
- BlackRock is shifting investments away from direct AI companies to those benefiting indirectly from the AI boom.
Despite expert warnings about a potential artificial intelligence bubble, Cathie Wood's ARK Invest has continued to acquire shares of Elon Musk's SpaceX. On Monday, July 13, ARK Invest purchased over 130,000 SpaceX shares, valued at approximately $21.3 million, across three of its exchange-traded funds. This acquisition occurred as SpaceX's stock price dropped to near its initial public offering price of $135.
The increased buying activity from ARK Invest comes at a time when a U.S. Treasury draft report has highlighted concerns that the rapid development of AI could pose an economic threat comparable to the dot-com bubble. The report suggests that an AI downturn could impact various sectors beyond technology, including private credit, cloud services, semiconductors, utilities, and data center financing.
Analysts are speculating on the extent of the AI craze, with some, like those from Bernstein and Cummings, suggesting that the gains in leading AI stocks indicate an inflating bubble. They noted that aggressive AI investment is leaving tech giants with less cash, and technology investments have reached nearly 5% of U.S. GDP. In contrast, BlackRock analyst Rick Rieder indicated that the firm is reducing its stake in direct AI companies, opting instead to invest in those that will benefit indirectly from the AI boom, such as Bitcoin miner TeraWulf, which has a data center hosting contract with Anthropic.