• According to Cathie Wood, Nvidia “has become a check-the-box stock.”
• Wood claims she has been selling the stock because “expectations could be getting ahead of themselves.”
• Last week, the semiconductor giant’s market valuation eclipsed that of Amazon and Alphabet.
“It has become a check-the-box stock, It’s surprising hugely on the high side of expectations. And we do think that expectations could be getting ahead of themselves.”
Cathie Wood, Ark Invest
Wood’s investment fund sold almost $4.5 million in Nvidia stock this year. The corporation is scheduled to release its earnings for the fourth quarter of 2023 on Wednesday.
“I’ve watched Nvidia all my career actually since it’s gone public. It’s a very cyclical stock,” she said. Nvidia representatives declined to comment when asked by TotalBulletin.
Wood recognized that Nvidia “created the AI age in a sense,” but there was also “hyperactivity” around its stock.
“Everyone’s excited, trying to get in at the same time, so there’s double ordering, triple ordering, quadruple ordering, and then there is an inventory correction,” he explained. “We think that will happen again.”
The semiconductor industry has benefited significantly from the AI growth.
Nvidia’s market valuation topped $1.8 trillion last week, surpassing that of Amazon and Alphabet. Nvidia’s 400% increase over the last year has resulted in a market capitalization equal to the whole Chinese stock market.
“If AI is the next industrial revolution, then absolutely we could see Nvidia’s valuation surge continuing,” online broker XTB’s Kathleen Brooks told TotalBulletin in an interview last week.
