Cathie Wood Reinvests in Nvidia!

Cathie Wood's ARK Innovation ETF (ARKK) purchased 93,374 shares of Nvidia yesterday. This marks the first purchase of the chip maker's stock since August 4th.

The purchase followed Nvidia's announcement of stronger-than-expected quarterly results. Although these results led to a temporary increase of over 5% in the stock, a subsequent decline occurred. The share closed at $180.64, down 3.15%, amid a broader market downturn and investors scaling back expectations for a Federal Reserve rate cut in December.

Investors have identified four warning signs related to Nvidia, which may lead them to question the stock's valuation.

As of November 20th, ARK holds a total of 505,395 shares of Nvidia, making it the fund's 23rd largest position. The recent purchase indicates renewed interest from a leading active manager but represents a modest market weighting for the ETF.

Market participants indicated that profit-taking and changing interest rate expectations contributed to the recent wave of selling. The transactions were disclosed in ARK's daily documents.

Some analysts noted that the recent purchase reflects a long-term confidence in AI-driven demand despite short-term volatility. Traders will be watching for upcoming guidance and macro data for signals on chip demand and Federal Reserve timing.