Wood has expressed concerns over Nvidia's high valuation, despite the company's market value growing from $575 billion in February 2023 to about $2.8 trillion currently. She also warned of a potential inventory correction due to over-ordering of Nvidia's GPUs. The proceeds from the Nvidia sales have been reinvested into other potential AI companies, though few of these investments have been successful.
Key takeaways:
- Cathie Wood's Ark Invest sold over 1 million shares of Nvidia when the stock was trading below $150 per share, missing out on potential returns of over $1 billion.
- The bulk of the sales occurred in November 2022, before the release of ChatGPT sparked a massive AI-fueled rally in the stock market.
- Despite the stock's 682% increase to about $1,141, Wood maintains that Nvidia's valuation is too high.
- Ark Invest has redeployed its proceeds from selling Nvidia stock into other potential AI companies, though few of these investments have been successful.