Wood says lead times are coming down for chip orders
Semiconductor stocks are among the best performers this year
Cathie Wood
Cathie Wood says semiconductor stocks may endure a market correction as the supply chain for the technology perks up.
“The one place we could see a correction — and it’s just a correction, we’re not calling it the end of this at all — is in the chip space,” the head of ARK Investment Management told Bloomberg Businessweek Radio Friday.
Semiconductor stocks are among the best-performing stocks this year, with shares of Nvidia Corp. up around 80%, after gaining roughly 240% in 2023. Wood bought Nvidia in 2014, but sold out of most of her position before the company’s rally last year.
Wood said that shortages in GPUs that grew last year as artificial intelligence tools like ChatGPT gained popularity have now begun to ease. Lead times are coming down for GPUs and for Nvidia in particular, Wood said, from the eight to 11 month range to about three to four months.
“So that is suggesting that there was probably a lot of double and triple ordering as the word ‘shortage’ was making the rounds, and then those inventories will have to be digested,” she added.