Cathie Wood turns to Meta stock as A.I. play after missing on Nvidia

Shares of Meta Platforms Inc (NASDAQ: META) have more than doubled already since the start of 2023 but influential investor Cathie Wood sees further upside ahead.

Wood bought $47 million worth of Meta stock

The Founder and CEO of Ark Invest spent more than $47 million to load up on shares of the tech behemoth this week.

In total, she bought 174,848 shares split between two of her exchange-traded funds – the flagship Ark Innovation and Ark Next Generation Internet. It’s the first time she has gained exposure to Meta Platforms since 2021.

The Facebook-parent is her bet on rapid growth in artificial intelligence after she missed on the exploding rally in Nvidia that materialised following its extraordinarily strong guidance for the current quarter.

Year-to-date, Meta stock is up a whopping 125% at writing.

Meta Platforms Inc is a popular A.I play

Meta Platforms has recently announced custom chips for advanced metaverse-related tasks. In April, it also reported a strong first quarter and issued upbeat guidance for the future.

It’s attractive also because CEO Mark Zuckerberg has been cutting jobs aggressively to minimise costs.

Other notable investors betting on Meta to play the A.I. space include Daniel Sundheim, David Tepper, and Philippe Laffont. Wall Street currently has a consensus “overweight” rating on Meta stock.

On the flip side, Cathie Wood trimmed her stake in Tesla Inc (NASDAQ: TSLA) by 324,551 shares to capitalise on a rather lucrative 135% gain in shares of the electric vehicle maker. It’s still the largest holding in ARKK with a close to 12% weighting.