Ark Invest has established itself as a firm focused on disruptive technology, and much like the tech stocks it invests in, its funds took a beating in 2022. This devotion to the cutting edge makes it almost surprising that Ark dumped much of its Nvidia (NVDA) -) holdings at the beginning of the year, just months before the semiconductor's stock surged more than 150%, notching a place in the elite $1 trillion market cap club.
“We’re just pivoting to another set of plays that most people have not discovered yet,” Ark's CEO and investment lead, Cathie Wood, said at the time. “Much like they did not understand that Nvidia was an AI play, really, until very recently.”
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Wood's big AI bet is Tesla (TSLA) -), which she has referred to as the "biggest AI play out there."
And with Nvidia set to report earnings after the bell Wednesday, Ark Invest decided to further trim its holding in the highly lauded 'AI darling.'
Ark's Next Generation Internet (ARKW) -) fund dumped 2,230 shares of Nvidia Tuesday, a sell-off worth slightly more than $1 million. The fund's remaining holding in the chip maker now stands at 33,152 shares, worth around $15.1 million and weighted at 1.16% of the ETF.
With the rest of the 'Magnificent 7' cadre taking a heavy hit throughout August thus far, analysts and investors are looking to Nvidia's earnings as an opportunity to reignite the tech rally. Analysts polled by Refinitiv are anticipating a profit of $2.09 per share and revenue of $11.2 billion for the quarter.
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"This is one of the most important earnings weeks of the year with the 'Godfather of AI' Nvidia set to report," Wedbush analyst Dan Ives said. "The Street is laser-focused on Nvidia's guidance and Jensen's commentary to get more direction on the true demand and growth trajectory of the AI revolution."
Nvidia shares, which started climbing slightly in pre-market trading, are up 212% so far for the year.
Last time Nvidia reported earnings, the company's market cap swelled by more than $200 billion in the span of a week.
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