Cathie Wood Watches As Nvidia Rides The AI Wave She Predicted Last Year: Why Is Ark Sitting Out?
Portfolio Pulse from Benzinga Neuro
Cathie Wood's ARK Innovation ETF (ARKK) has not held Nvidia (NVDA) shares since early 2023, missing out on Nvidia's significant gains driven by the AI boom. Despite Wood's prediction of the AI revolution's impact on economic growth, ARK opted to invest in less obvious AI companies like UiPath (PATH) and Twilio (TWLO), considering Nvidia overpriced. Nvidia's stock has surged 57% in 2024, significantly outperforming the S&P 500 and Nasdaq 100, after reporting impressive earnings and strong guidance.
February 23, 2024 | 9:17 am
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NEGATIVE IMPACT
ARK Innovation ETF has not held Nvidia shares since early 2023, missing out on Nvidia's significant gains and resulting in a nearly 8% decrease in the fund's performance this year.
ARKK's decision to not hold NVDA shares has negatively impacted its performance, especially given Nvidia's strong market performance.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
NEUTRAL IMPACT
UiPath is highlighted as a less obvious AI investment by Cathie Wood, contrasting with the decision to move away from Nvidia.
While UiPath is positioned as a strategic investment in AI by ARK, its direct short-term impact from this news is neutral, lacking specific performance data.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Twilio is another company Cathie Wood prefers for AI investment, diverging from Nvidia due to its high price.
Twilio, like UiPath, is favored by ARK for AI investments, but the article does not provide specific performance data to suggest a direct short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Nvidia's stock has significantly benefited from the AI boom, with a 57% increase in 2024, outperforming major indexes.
Nvidia's impressive earnings and strong guidance for AI growth have driven its stock price up, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 90