Cathie Wood, the prominent investor and founder of ARK Investment Management, has reduced her holdings in chipmaker NVIDIA Corporation (NASDAQ: NVDA). On Thursday, four different funds operated by ARK sold over 65,600 shares of NVIDIA at an estimated valuation of nearly $25 million, based on the closing price.
Wood’s flagship exchange-traded fund, the ARK Innovation ETF (ARCA: ARKK), had closed out its entire stake in NVIDIA last January, prior to the company’s enormous surge in market capitalization – an increase of $560 billion. Wood had shared her doubts about NVIDIA’s high valuation back in February, when the company was trading for 50 times forward earnings.
On Thursday, NVIDIA reported first quarter revenue of $7.19 billion, significantly higher than the estimated $6.52 billion. For the second quarter, the company expects a revenue between $11 billion plus or minus 2%, another indication of its upbeat outlook.
Notably, ARK Investment Management made a major buy on Thursday, investing a staggering $72 million in software company, UiPath Inc. (NYSE: PATH). This purchase came on a day when the stock of UiPath tumbled over 11% after announcing its quarterly earnings.
Cathie Wood is an experienced investor who has been at the helm of ARK Investment Management since 2008. She has gained tremendous recognition due to her unique investment strategies, which revolve around disruptive technologies such as autonomous cars and 3D printing. Wood’s flagship ETF, ARKK, covers a multitude of related themes, such as artificial intelligence, robotics, blockchain, space, and the internet.
In addition to NVIDIA and UiPath, Wood also owns substantial stakes in tech giants such as Alphabet (NASDAQ: GOOG, GOOGL), and has been increasing her positions in the ARK Innovation ETF. For Wood, the key to success is a combination of careful selection, attentive monitoring, and unwavering conviction in the themes she chooses to invest in.
