Cathie Wood's Ark Invest Is Selling Nvidia Stock and Buying These 2 Artificial Intelligence (AI) Growth Stocks
Cathie Wood's Ark Invest believes innovation is a key driver of long-term capital appreciation for shareholders, so the firm has constructed a series of thematic index funds focused on disruptive technologies like artificial intelligence (AI). In that context, readers may find it surprising that Wood and her team have been selling shares of Nvidia (NASDAQ: NVDA).
Ark cut its Nvidia position in half during the first three quarters of the year, and it continued to sell in October and November. That is somewhat surprising, because Nvidia is widely seen as the quintessential AI stock. But investors need not worry. Ark is not signaling a lack of conviction in Nvidia -- the firm still has a large stake in the AI chipmaker -- but rather taking profits because the stock has more than tripled this year.
Ark is redeploying that capital across AI software stocks such as The Trade Desk (NASDAQ: TTD) and Zoom Video Communications (NASDAQ: ZM) because it sees a much larger opportunity in that market vertical. Indeed, Ark believes companies could spend $21 on AI software for every $1 they spend on AI hardware.
Source Fool.com
