Cathie Wood’s Ark Investment Management purchased 243,707 shares of Nvidia on August 28, capitalizing on a short-term price drop following the chipmaker’s latest financial report.
The transaction was worth approximately $53 million based on Nvidia’s closing price of $217.55. The purchase marks one of Ark’s largest recent trades and fits Wood’s strategy of buying tech shares during post-earnings pullbacks.
The trade came shortly after Nvidia published its fiscal second-quarter financial results on August 26. The semiconductor company reported adjusted earnings per share of $2.22 on revenue of $96.22 billion. Both figures topped Wall Street projections of $2.10 per share and $92.17 billion in revenue.
Following the report, Nvidia shares climbed nearly 9% on August 27 before dropping 4.5% on August 28.
Company executives also issued upbeat forward guidance. CFO Colette Kress outlined expected fiscal 2028 revenue growth of 70%, exceeding the 44% growth rate anticipated by analysts.
“Customers’ forecasts point to our growth doubling next year. However, as I mentioned earlier, we expect to grow approximately 70% as we are supply-constrained,” Kress said during the earnings call.
Nvidia plays a central role in the artificial intelligence sector by supplying hardware for complex AI models and funding infrastructure projects. Analysts largely maintained positive ratings on the company after the results.
JPMorgan raised its price target for Nvidia to $320 from $280 while keeping an overweight rating. Bank of America analyst Vivek Arya maintained a buy rating with a $350 price target, calling the stock a top pick. Arya noted that Nvidia’s valuation remains compelling, projecting annual earnings growth near 60% from 2026 to 2028. However, Arya also highlighted potential risks, including lower gross margins, higher memory costs, competition from custom chips, and expanding financial obligations.
For the year through late August, Nvidia shares gained roughly 16.6%. The gain beat the S&P 500, but lagged behind chip maker AMD’s 117.4% surge and the Philadelphia Semiconductor Index’s 81.9% rise.
Alongside the Nvidia trade, Ark bought shares in Broadcom, Cerebras Systems, and Cloudflare. The funds simultaneously reduced positions in Brera Holdings, Roblox, Twist Bioscience, and AMD.
Nvidia is not among the top 10 holdings of the flagship Ark Innovation ETF (ARKK). As of August 28, the fund’s largest positions by weight were:
- Tesla (TSLA): 9.05%
- Tempus AI (TEM): 6.10%
- SpaceX (SPCX): 5.90%
- Circle Internet Group (CRCL): 5.51%
- CRISPR Therapeutics (CRSP): 4.77%
- Coinbase Global (COIN): 4.70%
- Twist Bioscience (TWST): 3.95%
- Robinhood Markets (HOOD): 3.76%
- Shopify (SHOP): 3.74%
- Palantir Technologies (PLTR): 3.22%
Fund Returns and Market Stance
Wood continues to advocate for investments in artificial intelligence, automation, biotechnology, and robotics. In an August 9 post on X, Wood pointed out that U.S. pre-tax corporate profits reached 13.2% of GDP, near multi-decade highs. She attributed part of this strength to adoption of new technologies, stating, “I think we’re still early in seeing how far that can go,” and adding that companies using AI effectively will “separate themselves from the ones that don’t.”
Despite her focus on high-growth sectors, Ark’s funds have experienced noticeable market swings. ARKK gained 35.49% last year and rose 9.97% this year through August 28, compared to the S&P 500’s 12.65% gain in the same period.
Longer-term figures show broader challenges. Morningstar data shows ARKK registered a five-year annualized return of -6.91% through August 28, while the S&P 500 gained 11.33% annually over that window. A separate Morningstar report by analyst Amy Arnott noted that the fund erased nearly $5 billion in investor wealth over the decade ending in 2025. VettaFi data shows ARKK saw approximately $2.09 billion in net investor withdrawals over the 12 months ending August 27.
Read More: Cathie Wood’s Ark Invest Buys $22.3 Million in Nvidia Ahead of Q2 Earnings
