Cathie Wood's Clever Move: How Ark CEO Stayed Cool Amid Arm IPO Hype
Portfolio Pulse from Aditi Ganguly
Cathie Wood's ARK Invest, which manages nearly $60 billion in assets, avoided participating in the IPO of British chipmaker Arm Holdings due to concerns about overemphasis on AI and high valuation. Arm's stock has since declined about 20% from its all-time high. ARK Invest's flagship fund, Ark Innovation ETF (ARKK), has seen a 25% surge this year, driven by holdings in companies like Tesla, Shopify, and Coinbase. Wood recently purchased Rize ETF, a British thematic ETF provider, marking ARK Invest's entry into the European passive investment market.
October 19, 2023 | 1:35 pm
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POSITIVE IMPACT
ARK Innovation ETF has seen a 25% surge this year, driven by holdings in companies like Tesla, Shopify, and Coinbase. The fund's performance could continue to improve as the tech sector rebounds and investor interest in AI-connected stocks increases.
ARKK's performance is likely to improve as the tech sector rebounds and investor interest in AI-connected stocks increases. The fund's holdings in companies like Tesla, Shopify, and Coinbase, which are expected to benefit from the AI boom, also support this outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Nvidia faces stiff competition from Arm Holdings, which has substantial exposure to the Chinese cell phone market. However, Nvidia's generative AI chips have helped it cross the $1 trillion market cap earlier this year.
While Nvidia faces competition from Arm Holdings, its generative AI chips have helped it achieve significant growth. However, rising tensions between the U.S. and China could impact Nvidia's business, given Arm's substantial exposure to the Chinese cell phone market.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50