Cathie Wood picks up $44.7 million in shares of two highly watched tech stocks. Is it too late to follow along?

Cathie Wood, the CEO of ARK Invest, has made a substantial investment of $44.7 million in shares of Taiwan Semiconductor Manufacturing (TSMC) and SpaceX. This purchase occurred between late July and mid-August. TSMC is the world's largest contract chip maker and is a key player in the artificial intelligence (AI) industry. The company reported a 34% increase in revenue year over year for its second quarter, amassing $40.2 billion.

On the other hand, SpaceX, which is led by Elon Musk, has been experiencing challenges since its IPO debut in June. As of mid-August, the company's stock was trading below its pre-IPO price, and it reported a loss of over $500 million in its first earnings report. Wood's investment reflects her belief in the long-term growth potential of AI and space technology.

However, her strategy also involves trimming investments in other companies like Amazon, Alphabet, and Shopify. While high-profile investors like Wood can potentially absorb losses without significantly impacting their financial well-being, everyday investors may face the risk of losing savings, derailing other financial goals, or being forced to sell during a downturn.