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Cathie Wood said in February that while she still loved Nvidia, her valuation was “very high”.
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Cathie Wood’s flagship fund was in
Nvidia
before the chipmaker became the hottest thing on Wall Street. Unfortunately for the head of ARK Investment Management, it was also out of stock before its recent surge.
THE
ARK Innovation
(ticker: ARKK) the listed index fund liquidated its position in
Nvidia
(NVDA) between November of last year and January of this year. That was before the majority of the rally that took the chipmaker to a valuation of nearly $1 trillion, as investors see it as the biggest beneficiary of the growth in artificial intelligence.
Nvidia shares were down 0.1% in premarket trading on Friday after closing up 24% on Thursday.
This is an example of how difficult it is to gauge the trend of AI, even for the most optimistic tech investors. Wood said in February that while she still liked Nvidia, her valuation was “very high” and ARKK was consolidating around her strongest ideas.
Wood’s investment firm still holds Nvidia in a number of its smaller exchange-traded funds, but is also selling some of those positions. A trade update emailed Thursday showed ARK Funds sold a total of 65,632 Nvidia shares, worth nearly $25 million at the day’s closing price.
However, that doesn’t mean Wood isn’t looking to play the AI ​​trend. ARK funds purchased a combined total of almost five million
UiPath
(PATH) shares, according to Thursday’s update.
UiPath
is an automation software provider, which it says will integrate with AI. ARK appeared to be buying the dip, as UiPath shares fell 11% on Thursday on disappointing second-quarter guidance.
UiPath shares rose 0.8% in premarket trading on Friday.
Write to Adam Clark at adam.clark@barrons.com
