Cathie Wood says ARK went beyond Nvidia as an “obvious” AI buy

(Bloomberg) – Cathie Wood said Nvidia Corp. is now an “obvious” bet on artificial intelligence, and it is buying shares of other companies that can benefit more from the potentially transformative technology.

Bloomberg’s Most Read

The CEO and founder of ARK Investment Management attracted unwanted attention after she closed the Nvidia position of her innovation ETF ARK (ticker ARKK) in January, missing most of this year’s meteoric rally. Now, says Wood, the chipmaker has “taken off”, leaving behind many other companies that will be huge beneficiaries of AI.

“We basically reassigned to other AI games that aren’t as obvious. Nvidia is very obvious now,” she told Bloomberg Television on Monday, noting that the stock trades at 25 times earnings.

Read more: Cathie Wood’s ARKK dumped Nvidia shares ahead of $560 billion rise

Although Wood owns Nvidia in several of its smaller funds, ARKK investors have mostly been left out of the semiconductor stock’s 218% rally this year.

Wood also said Tesla, ARKK’s main holding company, is the “biggest AI gaming opportunity there is.” She told Bloomberg Radio in a later interview that her best new investment idea was in Teradyne Inc., a company that designs semiconductor test products and services.

The investment manager also doubled its ultra-bullish Bitcoin price target of $1.5 million per coin, and said it was “very positive” on Coinbase – ARKK’s second-largest holding – more to a judge’s ruling that Ripple Labs Inc.’s XRP token is not a security when sold to retail investors on exchanges.

Almost all ARK ETFs generated positive inflows over the past month, with ARKK generating $247 million net in the past week alone, according to data compiled by Bloomberg. Year-to-date, however, all but one ETF have recorded negative outflows, despite the recovery in performance.

–With the help of Romaine Bostick, Carol Massar and Matthew Miller.

Bloomberg Businessweek’s Most Read

©2023 Bloomberg LP

Leave a Comment