Cathie Wood cleared the air regarding Ark Invest’s prior Nvidia share sale on social media site X. Nvidia shares have soared recently on the back of the stellar earnings posted by the company. Amidst the stock surge, Wood’s Ark Invest has likely missed a huge profit with the previous share sale.

Cathie Wood Clears Slate on Nvidia Share Sale

In an X post on Monday, Cathie Wood said that her firm is continuing to profit from Nvidia’s gains. Wood also said that, when the majority of investors valued Nvidia as a manufacturer of PC gaming chips, ARK Invest purchased the firm in 2014 for about $5 apiece. She added,  “After more than a 150-fold gain, we continue to take profits, grateful to Nvidia for the companies that are leveraging upon its amazing success.”

The post indicates that Wood’s firm bought Nvidia shares when nobody trusted that it could make a significant impact in the market. But with the recent stellar earnings, Nvidia has proved that AI revenue building has resulted in one of the strongest growth opportunities in the market.

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Ark Invest’s Nvidia Share Sale

According to Business Insider, Cathie Wood has a history of advocating for five-to-10-year outlooks rather than short-term trading and holding stocks. The money management organization has made artificial intelligence a major idea in recent years. The Ark Innovation ETF made many investments in Nvidia before selling all of its holdings in January 2023. This came after it had sold a sizable amount starting in November 2022.

Data from CathiesArk shows that as of November 2022, the Ark Innovation ETF held 772,884 shares in Nvidia. On November 9, the fund sold a significant portion of its Nvidia shares, along with investments in several other Ark ETFs. As of right now, the 772,884 shares would be valued at $616.7 million. This indicates that by selling the Nvidia shares at an early price, Cathie Wood’s Ark Invest has lost out on $506.8 million in prospective earnings.

Nvidia’s Earnings Support AI Market Growth Outlook

For the quarter, Nvidia brought in $22.1 billion in sales and recorded adjusted profits per share (EPS) of $5.16. Analysts projected revenue of $20.4 billion and earnings per share of $4.60. During the same quarter last year, Nvidia posted an EPS of $0.88 on $6.1 billion, a significant gain. Nvidia’s achievement was further demonstrated by its $27 billion in revenue for the entire fiscal year 2022.

The notion that AI revenue will be the primary source of income for many in the race has been solidified by Nvidia’s results. Tech companies will soon need to accelerate their AI research to begin generating income from AI.

The post AI News: Cathie Wood Clears Slate on Nvidia Sale After Stellar Results appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am