Cathie Wood-run Ark's Nvidia Stake Dwindles Further As The Firm Offloads About $10M Worth Of Shares

Cathie Wood, though upbeat about Nvidia Corp. NVDA, has sounded concerns regarding the valuation of the stock. In line with this thinking, the fund manager's Ark Invest offloaded more of the chipmaker's stock this week.

What Happened: Ark's Ark Genomic Revolution ETF ARKG sold 3,412 Nvidia shares on Friday, valued at $1.56 million. Nvidia stock closed Friday's session at $455.72, down 1.45%, according to Benzinga Pro data.

With Friday's offloading, Ark's cumulative sale of Nvidia this week came in at 21,014 shares or $9.79 million worth of shares. ARKG now holds about 110,478 shares of Nvidia, which accounts for about 2.54% of the portfolio weighting.

Incidentally, Ark's flagship fund the Ark Innovation ETF ARKK divested its entire Nvidia stake by early January 2023.

Nvidia currently is also part of the Ark Autonomous Technology & Robotics ETF ARKQ, in which it has a 2.85% weighting.

See Also: How To Buy Nvidia (NVDA) Stock

Why It's Important: Nvidia has positioned itself in the sweet spot of the AI revolution. The company reported stellar second-quarter results in late August, which came in well above the most optimistic forecasts.

With analysts rerating estimates following the quarterly results, the stock now trades at a formed P/E multiple of roughly 44 compared to the semiconductor industry's average P/E 25.9.

The average analyst price target for Nvidia, based on data compiled by TipRanks, is $636.62, suggesting roughly 40% upside potential.

Nvidia stock fell in all but one session this week and notched a weekly decline of 6.05%, as macroeconomic worries drove investors away from growth stocks.

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