TECH - Cathie Wood Says Nvidia Performance Exceptional But Forecasts 'Short-Term Indigestion' For Company's Business As Customers Reassess AI Strategies | Benzinga
In a recent investor letter, Cathie Wood, the CEO of ARK Invest, emphasized the pivotal role of NVIDIA Corp (NASDAQ:NVDA) in the company’s performance, despite short-term challenges.
What Happened: Wood, in her letter to investors, underscored Nvidia’s significant contribution to ARK’s performance since its inception in October 2014. She identified Nvidia as a crucial player in the AI space. “Early on, we identified Nvidia as the premier "picks and shovels" play in the AI space, Wood wrote.
Despite the recent market volatility, ARK’s ARK Next Generation Internet ETF (NYSE:ARKW) continues to have exposure to Nvidia, with a 1.39% weight as of Jun 28.
Wood acknowledged the impact of OpenAI‘s “ChatGPT moment” on Nvidia, which coincided with the Federal Reserve’s substantial interest rate hike. This led to a surge in investor interest in Nvidia and other ...