Ark Invest CEO Cathie Wood believes Nvidia (NASDAQ: NVDA) could soon face a reckoning. In March, she wrote:

Without an explosion in software revenue to justify the overbuilding of GPU capacity, we would not be surprised to see a pause in spending, compounding a correction in excess inventories, particularly among the cloud customers that account for more than half of Nvidia's data center sales.

That does not necessarily mean Nvidia is a bad investment. The company has navigated supply gluts in the past, and the stock has always rebounded. But Ark Invest sees better opportunities elsewhere. So Wood and her team continued to sell shares of Nvidia throughout March, while redeploying capital in The Trade Desk (NASDAQ: TTD), another company that stands to benefit from artificial intelligence.

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Source Fool.com