After Nvidia, AMD's Recent Rally, Cathie Wood Says Chip Stocks 'Could See A Correction': 'We're Not Calling It The End Of This At All'
Portfolio Pulse from Ananya Gairola
Cathie Wood, CEO of ARK Investment Management, expressed concerns about a potential correction in the semiconductor sector, particularly highlighting Nvidia Corporation (NVDA) and Advanced Micro Devices, Inc. (AMD) after their recent rallies. Wood noted improvements in the supply chain and a reduction in GPU lead times, suggesting an easing of shortages that could lead to a market correction. Despite this, ARK recently added stock in Taiwan Semiconductor, a supplier to Nvidia, and trimmed positions in Nvidia and AMD ahead of their Q4 results.
March 09, 2024 | 4:09 am
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Advanced Micro Devices, Inc. might also experience a short-term market correction following Cathie Wood's concerns about the semiconductor sector, despite not being the primary focus of her comments.
Although AMD was not the primary focus, the general concerns about the semiconductor sector's potential for a market correction could negatively impact AMD's stock in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Nvidia Corporation may face a short-term market correction due to easing GPU shortages and concerns raised by Cathie Wood about its valuation after a significant rally.
Nvidia's stock has surged significantly, but Cathie Wood's comments on potential overvaluation and easing GPU shortages could lead to a short-term correction in its stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90