$21 Million! Wall Street’s tech stock goddess, Sister Wood, continuously made large purchases of Alibaba and Baidu within a single day. What signal does this send?

According to the trading report released by Ark Invest, two of its ETFs — ARKW and ARKF — jointly purchased Alibaba ADRs on September 22, with a total value of approximately $16.3 million. This is the first time Sister Wood has re-established a position in this Chinese tech giant since completely selling off Alibaba in September 2021.

Today, let’s discuss why she is heavily buying Alibaba at this juncture? What signal about the revaluation of Chinese tech value is hidden behind this?

Sister Wood, originally named Cathie Wood, is the founder of Ark Invest. Many people call her the “female version of Buffett,” but her style is completely different from Buffett’s. She is famous for betting on disruptive technologies.

What does Sister Wood see in re-establishing a position in Alibaba?

First and undoubtedly, Chinese tech stocks are now too “cheap.” Key valuation metrics such as the price-to-earnings ratio and price-to-sales ratio for many China concept stocks are still at historical lows. In a recent interview, Sister Wood直言不讳地表示: “The valuation gap is currently very large; Chinese tech stocks are roughly only half the price of their U.S. counterparts.”

And Alibaba is a prime example. This year, Alibaba’s stock price has accumulated a rise of over 116%, and its U.S. stock increase is also close to 107%. However, compared to U.S. tech giants, its P/E and P/S ratios remain at historical lows. The opportunity to invest in a leading company on the certain path of artificial intelligence at a relatively low price is highly attractive for funds seeking high growth.

Of course, being cheap alone is certainly not enough. Sister Wood’s investment vision has always been ahead of the curve. Alibaba’s niche spanning e-commerce, logistics, cloud computing, and large models happens to be at the “convergence point of multiple disruptive technologies.” Especially with Alibaba’s collaboration with NVIDIA on Physical AI, its AI capabilities will extend into hardware scenarios like robotics and autonomous driving. This logic is consistent with Sister Wood’s investment in Tesla.

Moreover, Alibaba’s AI strategy is moving from “story” to “execution phase.” In terms of performance, Alibaba Cloud had an “explosive quarter” in Q2, with revenue increasing 26% year-over-year, marking the highest growth rate in nearly three years. Alibaba’s AI products are even more impressive, with revenue growing triple-digits for eight consecutive quarters. Alibaba’s overall net profit surged by 76%, indicating that AI investments are already starting to generate profits.

On the same day Sister Wood announced buying Alibaba, the 2025 Alibaba Cloud Summit was held in Hangzhou. CEO Wu Yongming stated that Alibaba is actively promoting AI infrastructure construction with a scale of 380 billion yuan and plans additional, larger investments.

Sister Wood didn’t just buy Alibaba this time. On the same day as buying Alibaba, Ark also increased its holdings in Baidu, bringing the total holding value to approximately $47 million. Additionally, her portfolio includes other Chinese tech companies like BYD (002594), Pony.ai, and JD Logistics.

This series of operations indicates that Sister Wood is re-positioning herself in Chinese tech stocks, particularly those focused on the AI field. In her latest interview, Sister Wood shared her thoughts, stating that she is impressed by the rapid iteration in China’s open-source software and electric vehicle industries. She specifically mentioned that the emergence of DeepSeek made it clear to them that China is very focused on its investments in open-source software and is developing very rapidly. Her choice at this moment can be interpreted as her belief that the “disruptiveness” of China concept stocks is shifting from business model innovation to more fundamental, hardcore tech innovation.

Of course, investing is never a smooth road. The future performance of Chinese tech stocks will still be affected by multiple factors such as global macroeconomics and geopolitics. But Sister Wood’s move undoubtedly sends a strong signal to the market: those Chinese tech companies that truly possess core technologies and broad application scenarios are being re-identified and re-priced by smart global capital. For investors, ignoring the potential of these core AI players in the Chinese market may lead to significant opportunity costs in the future.