The ARK Innovation ETF (ARKK) experienced a significant surge of 5.04% in Thursday's trading session, buoyed by Cathie Wood's strategic moves and potential shifts in U.S. chip export policies. The fund's performance reflects growing investor confidence in the technology and innovation sectors, particularly in artificial intelligence (AI) and semiconductor industries.

Cathie Wood, the founder and CEO of ARK Invest, has been actively adding to her positions in tech giants Nvidia (NVDA) and Advanced Micro Devices (AMD). Through various ARK ETFs, Wood purchased 107,661 shares of Nvidia, valued at approximately $12.2 million, and 114,581 shares of AMD, worth about $11.3 million. These acquisitions come at a time when both companies are trading at relatively attractive valuations despite their strong growth prospects in the AI chip market.

Adding to the positive sentiment, reports suggest that former U.S. President Donald Trump's team is considering a rollback of Biden-era chip export restrictions. The potential easing of these controls has sparked optimism among investors, driving up shares of semiconductor companies. This policy shift could significantly benefit companies like Nvidia and AMD, which have faced challenges due to current export limitations, particularly concerning sales to China. The ARK Innovation ETF's substantial holdings in these companies position it to capitalize on any favorable policy changes in the semiconductor industry.