Cathie Wood abandoned Nvidia shares ahead of the results

Is Cathie Wood afraid of more bad news from Nvidia?

Wood’s ARK Invest funds cut stake in Nvidia

ahead of the graphics chip maker’s results. Nvidia has already warned about Q2 results, so the real question is the degree of caution it uses for the rest of the year.

Connected: Nvidia is a data center story for the foreseeable future

ARK Innovation ETF

sold $40 million worth of Nvidia on Tuesday and the ARK Next Generation ETF

sold shares for $11 million. Wood has not been as active in stocks, and her previous stock trades this year were all buys.

The microchip industry has seen growth slow. Global Semiconductor Trade Statistics this week said sales growth would slow to 14% this year and 5% in 2023, following growth of 26% in 2021.

Shares of Nvidia have tumbled 42% this year, although the stock has rebounded 21% since its July bottom. Wood’s flagship innovation fund is down 54% this year, although it is up 22% from its lows in May.

However, the ARK complex pounced on Zoom Video Communications

following a 17% selloff in the virtual meeting provider following poorly received results. The ARK Innovation fund snapped up Zoom for $60 million, and the Next Generation fund added another $11 million in equity.

Meanwhile, ARK funds continued to reduce their holdings in Signify Health
which came together after reports of a bidding war, with the funds selling a total of $26 million.

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