Cathie Wood has in the recent past expressed uneasiness over Nvidia Corp.'s NVDA valuation despite the AI opportunity.
Ark Offloads More Of Nvidia: In line with the fund manager's thinking, Ark Invest has been selling Nvidia shares since late October 2022, save two small buy transactions in late February this year.
Wood's flagship fund Ark Innovation ETF ARKK has divested its entire Nvidia stake by early January 2023.
On Thursday, two of Ark's funds trimmed their Nvidia Holdings. The Autonomous Technology & Robotics ETF ARKQ and Ark Genomic Revolution ETF ARKG together sold 9,898 Nvidia shares valued at $4.2 million at Thursday's closing price of $423.88.
Nvidia now accounts for 2.59% of ARKQ and 2.72% of ARKG.
The chipmaker’s shares have been on a tear this year, as investors bet on the company's AI prowess. Several hundreds of the company's processors are used to train AI models that are gaining in popularity. The stock has gained over 190% year-to-date and is the best-performing S&P 500 stock this year.
See Also: Best Artificial Intelligence Stocks
Alphabet Stake Trimmed: Ark also sold Alphabet, Inc. GOOGL GOOG on Thursday. ARKQ and Ark Space Exploration & Innovation ETF ARKX sold 10,439 Class C shares of the search giant.
The disposal is valued at $1.36 million. The stock closed Thursday's session up 0.05% at $130.21, according to Benzinga Pro data.
Ark has largely been a seller of Alphabet shares since the start of 2021. Alphabet is among the top AI-levered companies that are expected to benefit from the increasing adoption of this new-age technology.
The company's Bard chatbot and the use of AI in its search and cloud businesses will likely position it well in the AI arms race.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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