Ark Invest dumped the bulk of its holdings in Nvidia (NVDA) -) a few months before the chip-makers reported record earnings in May, adding more than $200 billion to its market-cap in the course of a few days.
Cathie Wood, the CEO and investment chief of the firm, said at the time that Ark was exploring other AI plays that most investors had yet to discover. In that vein, her biggest AI bet involves Elon Musk's Tesla (TSLA) -); the tech that makes self-driving possible is rooted in artificial intelligence, and every mile of self-driving that Tesla conducts provides more and more data to the company, which will allow it to better train future AI models.
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And while just about every other big-name investor or analyst remains incredibly bullish on Nvidia -- it is the "picks and shovels leader in the AI gold rush," according to Bank of America -- Wood seems to prefer avoiding exposure to the semiconductor company. Ark invest dumped a further 2,230 of its ever-dwindling Nvidia holdings before the firm reported earnings Wednesday.
And following its earnings, Ark dumped another 3,952 shares in the company, valued at around $1.8 million. The sell-off was done by Ark's Genomic Revolution ETF (ARKG) -), which still holds 130,268 shares of the company, weighted at around 3% of the fund.
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Nvidia smashed analyst expectations Wednesday, reporting adjusted earnings per share of $2.48, compared to analyst estimates of $2.08. The company reported profit of $13.5 billion, above estimates of $11.2 billion. Nvidia also adjusted its guidance, saying it expects to see $16 billion in revenue for the current quarter.
Despite shooting up more than 7% in after-hours trading, Nvidia's stock slid throughout the day Thursday, closing at $471.63 per share.
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