Cathie Wood's Ark Invest Is Selling Nvidia Stock and Buying 1 Unique Artificial Intelligence (AI) Growth Stock
Cathie Wood's Ark Invest is exceedingly bullish on artificial intelligence (AI). The firm believes AI software revenue could grow at 42% annually to reach $14 trillion by the end of the decade. So readers may be surprised to learn that Ark has been selling shares of Nvidia (NASDAQ: NVDA), a chipmaker whose processors are widely seen as synonymous with AI.
To be clear, Ark still has about 1% of its portfolio invested in Nvidia, and the chipmaker ranks as its 26th-largest holding, so Wood and her team are by no means bearish. But Nvidia has seen its share price double in the last six months, and Ark has responded by trimming its position and redeploying the funds elsewhere.
Some of that capital was used to start a position in another AI stock: The Trade Desk (NASDAQ: TTD). The firm started buying shares in May, and most recently bought shares in early September.
Source Fool.com
