Cathie Wood’s Ark Invest doubles down on Nvidia, Innovation ETF suffers 3 months of outflows
Ark Invest’s Cathie Wood scooped up shares of her growth darling Nvidia after the chipmaker suffered a double-digit sell-off this week alone. Wood’s flagship ARK Innovation ETF added 226,717 shares of Nvidia on Thursday. She also snapped up 32,093 shares for ARK Autonomous Technology & Robotics ETF and 39,008 shares for ARK Next Generation Internet ETF, according to Ark’s daily trading data. These purchases were worth $41.5 million based on Nvidia’s Thursday’s close of $139.37. Nvidia shares have declined more than 13% this week. On Wednesday, the chipmaker said it could face a $400 million hit to its revenue in China after the U.S. government ordered the company to stop selling certain chips to the country. Daiwa Capital Markets also downgraded Nvidia to neutral on Friday , saying shares are trading too high given the heightened uncertainty. Meanwhile, the innovation investor also trimmed her biggest holding Tesla across these three ETFs. The selling doesn’t necessarily mean Wood’s view on Tesla has turned bearish. Wood previously explained that she often trims her Tesla bet to raise cash to buy other stocks. The EV maker has bounced back about 35% from its recent low. The popular investor is in the middle of a rough year as disruptive technology names have been among the biggest losers this year in the face of rising interest rates. High interest rates hurt the value of future earnings for these growth companies. Wood’s flagship ARKK just suffered three straight months of outflows even as the ETF rebounded from its low in May. Ark Innovation ETF is up roughly18% from its 52-week low reached in May. Year to date, ARKK is down about 56% this year. Still, the innovation ETF has seen inflows of more than $980 million this year. Wood previously said her clients are mostly sticking with her and new money is coming in as investors seek diversification in a down market.