Ark Invest CEO Cathie Wood has been buying Nvidia shares across the firm's five largest exchange-traded funds, even as the stock has fallen about 17% since mid-May, according to theglobeandmail.
com.
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Nvidia, a leader in AI chip technology, reported an 85% year-over-year revenue increase for its fiscal first quarter ending in April.
The company's quarterly revenue growth has accelerated, with previous increases of 55%, 63%, and 73%.
Adjusted operating profit and earnings more than doubled during the quarter, reflecting strong financial performance despite the stock price decline.
Wood Sees Undervalued Opportunity
Wood considers Nvidia undervalued, with the stock trading at 22 times projected earnings for the current fiscal year and 15 times for the next.
She acknowledged supply chain constraints and geopolitical trade concerns but remains confident.
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"Nvidia stock was cheap before, and it's even cheaper now," Wood said, emphasizing the company's growth and valuation.
Her investment strategy highlights confidence in Nvidia's position despite challenges from supply issues and Chinese trade restrictions.
A market analyst who holds a personal position in Nvidia reported a 10.57% unrealized loss, attributing the drop to typical high-beta stock volatility during earnings season.
"I entered this trade based on Nvidia's dominant moat in AI chips, enterprise GPU demand, and continuous innovation," the analyst said, noting plans to potentially average down if technical support zones hold.
They added that short-term sentiment shifts do not alter long-term trends and emphasized discipline in portfolio allocation.
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Despite the recent pullback, Nvidia remains a significant player in AI hardware, with Ark Invest and other market participants betting on its continued growth and innovation.
