Cathie Wood Sells $41M In Tesla Shares And Loads Up On This Chip Stock Amid Thursday's Plunge

Cathie Wood-led Ark Investment Management bought 297,818 shares of Nvidia Corporation NVDA, via three of the firm’s exchange-traded funds, valued at over $41.5 million based on Thursday’s closing price.

Nvidia is the 27th largest holding in the firm’s flagship ARK Innovation ETF ARKK with a weight of 0.94%, according to data on the firm’s website.

Interestingly, Wood had sold over 293,000 shares of the chip maker last week, via two of the firm’s exchange-traded funds, valued at over $50 million ahead of the company’s earnings release.

Nvidia reported in a securities filing on Wednesday that the Biden administration has placed restrictions preventing it from selling its A100 and H100 chips to Russia and China. 

The chipmaker said it expects to lose $400 million — or 10.6% of its data center business and 6.8% of its third-quarter revenues — from these restrictions.

Also Read: Why This Nio Analyst Has Slashed Its 3Q Delivery Estimate By 12%

Price Action: Nvidia shares lost over 24% last month and closed at $139.37 on Thursday. Deutsche Bank has maintained its ‘Hold’ rating on the stock while revising the price target to $165 from $175.

Tesla Sale: Wood dumped over 150,000 shares of Tesla Inc TSLA, through three of the company’s funds, valued at over $41.5 million based on Thursday’s closing price.

Tesla is the top holding of the ARK Innovation ETF, with a weight of 9.94% valued at over $793 million. Tesla shares have lost over 7% in a month. Deutsche Bank has maintained its ‘Buy’ rating on the stock with a price target of $375.

Photo courtesy: Ark Invest