Is Cathie Wood fearing more bad news from Nvidia?
Wood’s ARK Invest funds trimmed their stake in Nvidia
ahead of the graphics chipmaker’s results. Nvidia has already warned on second-quarter results, so the real question is the degree of caution it employs about the rest of the year.
Related: Nvidia is a data-center story for the foreseeable future
The ARK Innovation ETF
sold $40 million worth of Nvidia on Tuesday, and the ARK Next Generation ETF
sold $11 million of shares. Wood hasn’t been that active in the stock, and her previous trades in the stock this year were all buys.
The microchip industry is seeing a slowdown in growth. The World Semiconductor Trade Statistics this week said sales growth will slow to 14% this year and 5% in 2023, after 26% growth in 2021.
Nvidia shares have slumped 42% this year, though the stock has bounced 21% from its July lows. Wood’s flagship innovation fund has skidded 54% this year, though it has climbed 22% from its lows in May.
The ARK complex however pounced on Zoom Video Communications
after the 17% sell-off in the virtual meeting provider following its poorly-received results. The ARK Innovation fund snapped up $60 million worth of Zoom and the next-generation fund added another $11 million worth of shares.
Meanwhile, ARK’s funds continued to reduce their shares in Signify Health
which has rallied on reports of a bidding war, with funds selling a combined $26 million.