Cathie Wood is loading up on shares of Nvidia Corporation (NASDAQ: NVDA) on the weakness post its preliminary second-quarter results.
Nvidia says its gaming revenue was hit hard in Q2
On Monday, the chip company reported a 44% sequential decline in its gaming revenue. Consequently, it ended up missing its top-line forecast for Q2 by $1.40 billion.
The preannouncement wasn’t well-received by the investors that sent shares down roughly 8.0% – a decline that Wood saw as an opportunity to load up on Nvidia.
Expanding her exposure to Nvidia Corporation, the Founder and CEO of Ark Invest is sending a signal that she remains constructive on the long-term story, even though the looming recession will likely make it difficult for the semiconductor stocks to recover in the near-term.
Wall Street also has a consensus “overweight” rating on the Nvidia shares.
How many shares of Nvidia did Cathie Wood buy?
On the plus side, however, President Biden will sign the $280 billion bill (Chips Plus) on Tuesday that aims to incentivize domestic production of computer chips.
That may have inspired Cathie Wood to spend roughly $65 million to buy 366,982 shares of Nvidia Corporation on Monday via three of her exchange-traded funds. ARKK – her flagship fund alone now has a $136 million stake in the tech giant.
Ark Innovation ETF now has Nvidia as its 25th largest holding. The influential investor also bought 47,069 and 30,684 shares of the chip company via Ark Next Generation Internet ETF and Ark Fintech Innovation ETF, respectively.
Shares of Nvidia Corporation are down another 4.0% this morning.
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