Despite Nvidia's market capitalization surpassing Amazon's and Alphabet's last week, reaching $1.8 trillion, Wood anticipates an inventory correction due to "hyperactivity" surrounding the stock. She acknowledged Nvidia's role in creating the AI age but warned of potential over-ordering leading to an inventory correction.
Key takeaways:
- Cathie Wood of Ark Invest has been selling Nvidia stock due to concerns of overvaluation.
- Wood referred to Nvidia as a 'check-the-box stock' and expressed concerns that expectations for the company could be getting ahead of themselves.
- Nvidia's market capitalization recently surpassed that of Amazon and Alphabet, reaching $1.8 trillion.
- Despite the sell-off, some analysts believe Nvidia's valuation could continue to surge if AI is indeed the next industrial revolution.