Cathie Wood's Ark Invest Is Selling Tesla and Nvidia, and Buying 1 Little-Known Artificial Intelligence (AI) Growth Stock

Cathie Wood's Ark Invest believes companies that deal in disruptive innovation are the ones most likely to see long-term appreciation. In keeping with that philosophy, it manages several thematic funds focused on disruptive technologies like artificial intelligence (AI). 

Ark sold shares of (NASDAQ: TSLA) and Nvidia (NASDAQ: NVDA) throughout September. That might puzzle investors because Tesla is generally seen as a leader in autonomous driving technology, and Nvidia's chips are considered the gold standard in AI infrastructure.

There is a simple explanation: Ark trimmed its positions not because it lacks conviction, but to rebalance its portfolio. Tesla stock has doubled year to date, and Nvidia stock has tripled, so Ark decided to resize its positions and redeploy capital elsewhere.

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Source Fool.com