Cathie Wood Defends ARKK’s Decision to Dump Nvidia, Citing Chip-Cycle Risks
- ARKK ditched chipmaker before a 160% surge added $500 billion
- Fund manager says Meta’s pivot to AI ‘interesting to us’
Cathie Wood defended her firm’s decision to bail on Nvidia Corp. before the chipmaker’s shares surged 160%, saying the computer-chip industry’s boom-bust cycle poses risks.
Wood’s flagship ARK Innovation ETF (ticker ARKK) cut its holding in Nvidia in January and missed out on most of the rally that added more than half a trillion dollars in market value. Nvidia jumped 24% Thursday alone after forecasting $11 billion in sales this quarter, 53% more than analysts expected.