Cathie Wood’s Top Fund Missed Nvidia’s Stock Surge. But ARK Made This AI Bet.

May 26, 2023 | blog

Cathie Wood stated in February that whereas she nonetheless favored Nvidia, its valuation was “very high.”

Getty Images

Cathie Wood’s flagship fund was into Nvidia earlier than the chip maker turned the most well liked factor on Wall Street. Unfortunately for the pinnacle of ARK Investment Management, it was additionally out of the inventory earlier than its current surge. 

The ARK Innovation (ticker: ARKK) exchange-traded fund exited its place in Nvidia (NVDA) between November final 12 months and January this 12 months. That was earlier than the vast majority of the rally which has taken the chip maker to a valuation of almost $1 trillion as buyers again it to be the most important beneficiary of the expansion of synthetic intelligence. 

Nvidia shares have been down 0.1% in premarket buying and selling on Friday after closing up 24% on Thursday.

It’s an instance of the problem of valuing the AI pattern even for essentially the most bullish tech buyers. Wood stated in February that whereas she nonetheless favored Nvidia, its valuation was “very high” and ARKK was consolidating round its highest conviction concepts. 

Wood’s funding firm nonetheless holds Nvidia in various its smaller exchange-traded funds however can also be promoting components of these positions. An emailed buying and selling replace on Thursday confirmed ARK funds had bought a mixed 65,632 shares of Nvidia, value near $25 million on the day’s closing value. 

However, that doesn’t imply Wood isn’t seeking to play the AI pattern. ARK funds purchased a mixed complete of almost 5 million UiPath (PATH) shares, based on the Thursday replace. UiPath is a supplier of automation software program, which it says will combine with AI. ARK shopping for the dip, as UiPath shares fell 11% on Thursday on disappointing second-quarter steering.

UiPath shares have been up 0.8% in premarket buying and selling on Friday.

Write to Adam Clark at

MoneyMaker FX EA Trading Robot

powered by