Why Cathie Wood Is Selling Nvidia Stock

Dow Jones02-19

The monster run in Nvidia shares reminds ARK Investment Management's Cathie Wood of 2018.

Nvidia has been the biggest winner of the artificial intelligence trade that powered the stock market higher last year. But Wood is worried a correction could be coming soon.

That pattern is part of why Wood, ARK's CEO and chief investment officer, has sold at least $4.5 million worth of Nvidia shares in her funds this year. ARK had a stake worth more than $100 million as of the end of 2023, according to FactSet data.

ARK's Cathie Wood in November.ARK's Cathie Wood in November.

"The expectation levels just get so high that they cannot be met," Wood said in an interview with WSJ's Take On the Week podcast.

Wood also pointed to increased competition from big tech companies including Meta, Tesla, Alphabet and Amazon, which are developing their own AI products that could pressure demand for Nvidia's.

"They're all working on their own AI chips," she said. "They're more specialized, more special-purpose, whereas NVIDIA's are more generalized."

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Comments

  • Louis K Jia Heng
    02-19
    Louis K Jia Heng
    She love to cut the flowers and grow the weeds
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