Benzinga - by Shanthi Rexaline, Benzinga Editor.
Cathie Wood-run Ark Investment Management on Monday sold more shares of AI stalwart Nvidia Corp. (NASDAQ:NVDA) even as the market has factored in continued outperformance for the stock.
Cashing Out Of AI Bigwigs: Ark through its ARK Autonomous Technology & Robotics ETF (CBOE: ARKQ) and ARK Genomic Revolution ETF (CBOE: ARKG) sold 4,422 Nvidia shares. At Monday’s closing price of $871.33, the sale would have fetched Ark $3.85 million.
Following Monday’s sale, ARKG holds 7,139 Nvidia shares and ARKQ 20,724 shares. The Ark Fintech Innovation ETF (NYSE:ARKF) and Ark Next Generation Internet ETF (NYSE:ARKW) currently have 12,711 and 20,464 Nvidia shares, respectively in their portfolio. Cumulatively, these exchange-traded funds hold 61,038 Nvidia shares, valued at $53.18 million.
Ark’s flagship ETF – the Ark Innovation ETF (NYSE:ARKK) fully divested Nvidia shares in January 2023 ahead of their AI-induced strong surge.
Ark also shed some shares of another AI play on Monday. The ARK Space Exploration & Innovation ETF (CBOE: ARKX) sold 3,129 shares of Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) worth $488,562.
Why It’s Important: Despite cautionary comments about the outlook for AI stocks amid their meteoric climb, most analysts expect the bubble to last for multiple out years. KeyBanc Capital Markets semiconductor analyst John Vinh said in a recent note that he expects AI-related demand to remain robust in the first quarter.
LPL Financial’s Chief Equity Strategist Jeffrey Buchbinder said in his earnings preview that he expected AI investments to provide a tailwind yet again in the first quarter, supporting corporate profits.
Wood, however, has said in the past that she would rather prefer investing in shares of up-and-coming AI companies that are yet to take off in a big way, rather than throwing her weight behind those stocks that have run their course.
ARKK closed Monday’s session up 2.08% at $48.10, according to Benzinga Pro data.
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