Cathie Wood, the founder of Ark Invest, recently sat down with Benzinga CEO Jason Raznick on “The Raz Report” to address pressing investor questions — chief among them, investor concern regarding Ark’s multiple sales of Nvidia Corp NVDA stock.
Wood Buys Low, Sells High: “If we see one of our stocks up 20, 30, 50, 100, 200% in a short period of time, we will take profits. Clearly the momentum buyers want it; they’re willing to pay up dramatically,” Wood said.
Wood made clear that Ark Invest was “there” from Nvidia’s nascent stages, recalling a brainstorm session that led the firm to buy Nvidia shares back in 2014 when it was trading at roughly $5.
At that time, Nvidia was primarily seen as a gaming chip company. In 2015, Wood said she had a sort of “ah-ha” moment that led to the bulkier purchases.
“I remember in 2015, Tasha Keeney comes into our brainstorm and says ‘you know, it seems like the brains or the central nervous system of an autonomous vehicle is going to be a GPU,’” Wood said.
Though acknowledging Nvidia’s attempts to diversify into software, Wood expressed concerns about an “inventory glut” caused by the hype surrounding AI.
“I don’t know if it’s going to happen a year from now or a quarter from now or two years from now.”
Even as Ark maintains a lesser percentage of Nvidia in specialized portfolios, Wood said her focus is fixed on the next wave of innovators.
Companies like Twilio Inc TWLO and UiPath Inc PATH are in her crosshairs due to their lower revenue multiples and potential for exponential growth.
Watch the full interview with Wood on “The Raz Report” below.