TECH - Cathie Wood Watches As Nvidia Rides The AI Wave She Predicted Last Year: Why Is Ark Sitting Out? | Benzinga
Shares of Nvidia Corp. (NASDAQ:NVDA) are soaring, riding the AI wave, while Cathie Wood‘s ARK Innovation ETF (NYSE:ARKK) sits on the sidelines.
What Happened: ARK’s flagship fund hasn’t held Nvidia shares since early 2023, despite Wood’s belief in the potential of disruptive technologies. This decision has resulted in ARKK missing out on Nvidia’s stellar performance, with the fund down nearly 8% this year, Bloomberg reported on Thursday.
Meanwhile, Wood’s smaller ETFs have recently reduced their already limited investments in the company led by Jensen Huang.
Nvidia recently reported impressive earnings, adding $256 billion in market value in one trading day. The company’s stock has risen 57% in 2024, outpacing the S&P 500 and Nasdaq 100, which are each up about 6%.
ARK Investment Management opted to move away from Nvidia, judging it as over-priced. Wood, in 2023, characterized Nvidia as ...