Cathie Wood dumps Nvidia stock ahead of results


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.


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By admin