Cathie Wood swaps Tesla for Nvidia Corporation

on Sep 2, 2022
  • Cathie Wood bought $41.5 million worth of Nvidia shares on Thursday.
  • She trimmed her stake in Tesla Inc by just as much to fund the purchase.
  • "ARKK" saw the biggest monthly outflow last month since Sept of 2021.

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Nvidia Corporation (NASDAQ: NVDA) was hit hard yesterday after the U.S. announced new restrictions on export of high-end chips to China.

Cathie Wood remains bullish on Nvidia Corp

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Shares slid 7.0% as the chipmaker warned of a consequent $400 million hit to sales this quarter. None of that, though, is a matter of concern for Cathie Wood.

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The influential investor engaged her flagship ARK Innovation Fund on Thursday to load up on about $32 million worth of Nvidia shares on the weakness. She saw it as an opportunity big enough to trim her largest holding (Tesla Inc) by just as much to fund the purchase.

“ARKK” is now 30% more exposed to Nvidia Corporation, which, however, is still not in its largest twenty holdings.

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Year-to-date, the stock is now down nearly 55%.

Wood also bought Nvidia using two other ETFs

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Wood spent another $9.5 million on the semiconductor giant via two of her other funds (ARKQ and ARKW) as well.

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A comparable trim was made to Tesla Inc (NASDAQ: TSLA) in these two ETFs as well. What else she recently bought and sold include:

  • Bought $9.0 million worth of Exact Sciences, Ginkgo Bioworks, and Teladoc combined
  • Sold $9.0 million worth of Compugen Ltd and Signify Health combined

The news comes a day after Bloomberg said about $803 million flowed out of her flagship ARK Innovation Fund in August – the biggest monthly outflow since September of 2021.

“ARKK” is now down nearly 60% versus the start of the year.  

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