Cathie Wood-led ARK Investment Management sold a significant stake in chipmaker NVIDIA Corporation NVDA on Thursday, possibly taking advantage of the surge in the share price following the company’s upbeat forecast.
Four different funds operated by ARK sold over 65,600 shares of Nvidia at an estimated valuation of nearly $25 million based on Thursday’s closing price. Wood’s flagship exchange-traded fund, the ARK Innovation ETF ARKK, had closed out its Nvidia stake in early January and since then, the chipmaker’s market capitalization has surged by $560 billion, according to a Bloomberg report.
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In February, when Nvidia traded for $234 per share, which reflected about 50 times forward earnings, Wood had reportedly said the valuation was “very high.”
“We like Nvidia, we think it’s going to be a good stock. It’s priced —it’s the ‘check-the-box’ AI company,” Wood had told CNBC, according to the Bloomberg report. “For a flagship fund, where we’ve consolidated towards our highest conviction names, part of that has to do with valuation.”
Nvidia’s first-quarter revenue came in at $7.19 billion, exceeding a Street estimate of $6.52 billion. For the second quarter, Nvidia expects revenue of $11 billion, plus or minus 2%, compared to a consensus of $7.15 billion.
Apart from the chipmaker, ARK also trimmed its stake in class C shares of Alphabet Inc GOOG GOOGL at an estimated valuation of over $1.3 million based on Thursday’s closing price.
Major Buy: Six different funds of ARK bought a whopping stake in UiPath Inc PATH at a valuation of over $72 million based on Thursday’s closing price. The purchase comes on a day when the stock closed over 11% lower after the company announced its quarterly earnings.
