Fresh off a market-thumping year, aggressive-growth icon Cathie Wood is hoping to keep momentum going in 2026. The co-founder, CEO, and chief investment officer of Ark Invest announces all of the transactions across her exchange-traded funds (ETFs), hours after the end of every trading day.
She was relatively quiet on Wednesday, putting money to work on just three stocks. Ark bought shares of Broadcom (AVGO +0.90%), Klarna (KLAR 4.78%), and Kodiak AI (KDK +1.50%), adding to her existing stakes. Let's take a closer look at Wood's latest purchases.
Image source: Getty Images.
1. Broadcom
Broadcom posted better-than-expected financial results last month, and you don't need to look hard to find the catalyst behind its accelerating growth. Revenue rose 28% for its fiscal fourth quarter that ended in November, fueled primarily by a 74% surge in AI semiconductor revenue.
Revenue for the fiscal year rose 24%, a little more than half of the 44% jump it posted a year earlier. Broadcom didn't peak a year ago: Analysts see the top line jumping 51% in the fiscal year that it kicked off last month. At the tech intersection of 99% of the world's internet traffic, Broadcom stock is positioned perfectly.
NASDAQ: AVGO
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The provider of semiconductor and tech infrastructure solutions also increased its dividend last month. This used to be a headline driver a few years ago, when it was a sleepy tech stock shelling out a dividend yield north of 5%. With the shares soaring as an AI play, it's no wonder the yield has contracted to below 0.8%.
It's not the payouts that are shrinking. Broadcom has now raised the rate of its quarterly distributions for 15 consecutive years. The stock is outpacing its increases, but one might also argue that its financial growth is outpacing the stock. The opportunity that Wood may be seeing here is the recent retreat. Broadcom is now trading almost 20% below its recent high, including a 4% drop on Wednesday as she was buying.
Broadcom may seem expensive at first, even after the pullback. It's trading for 71 times trailing earnings. That's steep. However, profitability is on a tear. Looking out to next year, Wall Street per-share profit targets for fiscal 2027 have risen from $12.14 to $14.08 over just the past three months. The same stock that is trading for more than 70 times last year's earnings is fetching a reasonable 24 times next fiscal year's net income forecast.
NYSE: KLAR
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2. Klarna
If a hot stock that's taking a breather catches Wood's attention, imagine a broken IPO. Klarna is a fast-growing player in the trendy but crowded buy now, pay later (BNPL) space. It went public at $40 in September. You can buy it for around $30 a share, four months later.
Klarna went public at $40 three months ago. The U.K-based but global-minded business enters this new trading week going for 22% below its IPO price. It would be nice if you could have a PNBL platform -- pay now, buy later -- for buying broken IPOs.
There are several players in this space, but there's plenty of room for most of them to continue to grow. Revenue rose 28% in Klarna's first quarter as a public company, up a still impressive 25% on a like-for-like basis. Klarna's business grew even faster in its core markets of the U.S. and Europe. Yet Klarna stock reported a healthy 28% increase in revenue in its first quarterly report as a public company. The global player grew even faster in its core U.S. and European markets. With $32.7 billion in gross merchandise volume transacted on its platform in that quarter, Klarna is not small. If it keeps growing at an impressive clip, it's not likely to remain a broken IPO for long.
NASDAQ: KDK
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3. Kodiak AI
You probably know a few self-driving-car stocks. But there's a good chance that Kodiak AI isn't on your radar. It commands a market cap of just $1.6 billion.
Kodiak's core product is Kodiak Driver, a virtual driver that leverages AI-powered autonomous-vehicle technology to enable fully driverless operations. We're not talking about personal robotaxis. This product aims higher, deployed in commercial trucking and public sector applications.
There are just 10 trucks in its fleet, and it's not even Kodiak's fleet. These are customer-owned vehicles, paying Kodiak for the technology that allows them to make money without having to be in the cab of their vehicles. Sounds cool? Sure. Sounds dangerous? Well, more than 3 million miles have been logged on its platform, including more than 5,200 hours of paid driverless operations.
The company is still early in its growth trajectory, but it had at least one Wall Street pro vouch for Kodiak earlier this year. Northland kicked off 2026 by making it one of its top picks. The firm thinks Kodiak has cracked the virtual-driver code, the hardest part of the process. Now it's up to how quickly the company can ramp up the fleet on its platform. Northland's $17 price target implies 82% of upside.
