- Ark Investment Management, led by CEO Cathie Wood, has reduced Nvidia holdings.
- Ark has increased Tesla holdings, viewing autonomous driving as the “biggest AI project on earth.
- The Ark Venture Fund has invested in Elon Musk’s AI startups, xAI and OpenAI.
In a video interview at the Greenwich Economic Forum in Hong Kong, Ark Investment Management CEO Cathie Wood reaffirmed her firm’s strategic position in AI assets. According to the report, Wood disclosed that Ark has reduced its Nvidia holdings in its “specialized portfolios and flagship fund.” Instead, it has shifted focus to emerging AI companies.
The CEO mentioned that Ark initially purchased Nvidia in 2014 at approximately $4 on a share-split adjusted basis. The ARK Innovation ETF held the stock until it reached around $400, selling most shares before Nvidia’s meteoric rise last year.
During a recent video interview at the Greenwich Economic Forum in Hong Kong, Ark Investment Management CEO Cathie Wood reiterated her firm’s strategic position in artificial intelligence (AI) assets. According to the report, Wood noted that Ark has reduced its Nvidia holdings to “specialized portfolios and flagship fund.” Instead, it has shifted focus to emerging AI companies.
The CEO mentioned that Ark bought Nvidia in 2014 at approximately $4 on a share-split adjusted basis. The ARK Innovation ETF retained the stock until it reached around $400, selling most shares before Nvidia’s surge last year. Following the sale, the chipmaker’s stock price rose more than eightfold to about $1,224, and its market cap surpassed $3 trillion.
Explaining the rationale behind reducing Nvidia’s stake, Wood stated:
“We were saying to ourselves if Nvidia is going to keep running like this, the only reason it should deserve to do that is if it’s going to benefit a lot of other companies, and we began to look at what those other companies might be. We did pull away, and I suppose it was a bit of a statement.”
Additionally, Wood underscored Ark’s commitment to Tesla Inc., describing autonomous driving as the “biggest AI project on earth.” The firm added to its Tesla shares earlier this year amid a slowdown in electric vehicle consumption and increased competition from companies like BYD Co.
Ark forecasts that Tesla’s shares could reach as high as $2,000 by 2027, with current individual bear and bull case projections at $1,400 and $2,500. Furthermore, the Ark Venture Fund recently revealed investments in Elon Musk’s AI startups xAI and OpenAI. These stakes represent 2% and 4% of the fund’s holdings, respectively. The fund also holds a stake in Anthropic.
Despite the downturn, Ark’s flagship ARK Innovation ETF, which peaked at over $60 billion in assets in early 2021, currently holds approximately $6.4 billion.
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