Cathie Wood dumps Nvidia stock ahead of results

Is Cathie Wood fearing more bad news from Nvidia?

Wood’s ARK Invest funds trimmed their stake in Nvidia NVDA, -0.58% ahead of the graphics chipmaker’s results. Nvidia has already warned on second-quarter results, so the real question is the degree of caution it employs about the rest of the year.

The ARK Innovation ETF ARKK, +2.41% sold $40 million worth of Nvidia on Tuesday, and the ARK Next Generation ETF ARKW, +2.02% sold $11 million of shares. Wood hasn’t been that active in the stock, and her previous trades in the stock this year were all buys.

The microchip industry is seeing a slowdown in growth. The World Semiconductor Trade Statistics this week said sales growth will slow to 14% this year and 5% in 2023, after 26% growth in 2021.

Nvidia shares have slumped 42% this year, though the stock has bounced 21% from its July lows. Wood’s flagship innovation fund has skidded 54% this year, though it has climbed 22% from its lows in May.

The ARK complex however pounced on Zoom Video Communications ZM, +1.26% after the 17% sell-off in the virtual meeting provider following its poorly-received results. The ARK Innovation fund snapped up $60 million worth of Zoom and the next-generation fund added another $11 million worth of shares.

Meanwhile, ARK’s funds continued to reduce their shares in Signify Health SGFY, +0.85%, which has rallied on reports of a bidding war, with funds selling a combined $26 million.

Source: finance.yahoo.com

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