Quick overview

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Nvidia was acquired by Cathie Wood’s flagship fund in response to the company’s spectacular earnings, confirming the bullish position of her company, ARK Investment Management, on the chip bellwether.

The US-based actively managed exchange-traded fund ARK Innovation ETF purchased 93,374 Nvidia shares on Thursday, according to daily trading data provided by the ETF provider. That was the first time an ARK fund had bought Nvidia stock since August. 4,

A rally in Nvidia shares fizzled out on Thursday after investors dismissed a higher-than-expected revenue forecast and guarantees that the AI economy isn’t in a bubble

The stock closed down 3.2 percent at $180.64 in New York after initially rising more than 5 percent. As investors reduced their bets on a potential December interest rate cut by the Federal Reserve, the overall market also fell.

ARK Investment owned over 1.1 million shares in the most valuable company in the world before Thursday’s acquisition. 30, according to data compiled by Bloomberg. The management team’s active decisions are the only ones displayed in ARK’s daily trading updates; creation or redemption activity by investor flows is not included. From a peak in October, the price of ARK’s flagship ETF has decreased by more than 20%, while the Nasdaq 100 Index has decreased by 4.3% during the same time frame.

The bet might be validated if AI adoption accelerates. Risks: As of early 2025, ARKK underperformed in high-rate environments, declining about 20 percent YTD with $2.3 billion in outflows.

Wood’s timing is mocked by X critics as “buying the top,” echoing past mistakes like selling Nvidia before the 2023 rally. Stock Target: Wall Street’s median 12-month price target for NVDA ranges between $200 and $220 after earnings, with bulls like Goldman at $250,

Although Wood’s strategies suggest a much higher long-term outlook—potentially over $1,000 by 2030 based on her AI models—ARK does not issue public targets.