Cathie Wood's Ark Invest bought $59.9 million of Nvidia shares across three trading days ahead of the chipmaker's Aug. 26 earnings report. The purchases, spread over five Ark ETFs, lifted the firm's total Nvidia stake by 24% to more than $303.6 million.
Cathie Wood has been buying Nvidia stock ahead of the company's second-quarter earnings report, due Aug. 26. Over three recent trading days — July 28, Aug. 5, and Aug. 10 — Ark Invest bought $59.9 million of Nvidia shares for its exchange-traded funds, with each purchase increasing in size.
Ark spreads the buying across five funds
The purchases were split across the Ark Innovation ETF, Ark Next Generation Internet ETF, Ark Autonomous Technology & Robotics ETF, Ark Fintech Innovation ETF, and Ark Space & Defense Innovation ETF. In total, Wood increased Ark Invest's Nvidia stake by 24%, bringing its investment in the chipmaker to more than $303.6 million.
Nvidia shares are up only 2% over the last three months as the semiconductor sector faces concerns that the AI infrastructure build-out could turn into a bubble, and that a shortage of memory and data storage chips could throttle growth across the industry.
Hyperscalers keep spending on AI infrastructure
Despite those worries, spending on new data centers remains strong. Amazon, Meta Platforms, Microsoft, and Alphabet have indicated they will spend more than $730 billion combined on AI infrastructure this year, and they expect that figure to rise next year. Nvidia has also partnered with Apollo Global Management, BlackRock, Blackstone, Goldman Sachs, KKR, and Brookfield to raise $500 billion in third-party capital for AI infrastructure serving frontier AI labs, enterprise firms, and AI cloud companies.
Analysts expect another strong quarter
Nvidia's data center business drives more than 90% of its revenue. Revenue in its fiscal 2027 first quarter, which ended April 26, was $81.61 billion, up 85% from a year earlier. Nvidia projects fiscal 2027 second-quarter revenue of $91 billion, a 94% gain from the $46.7 billion posted a year ago, but analysts surveyed by Yahoo! Finance expect even more: a consensus estimate of $91.85 billion, up 96.5% from a year ago.
Wood added to Ark Invest's Nvidia position across all five funds in the days before the chipmaker reports.
Source: Fool
Trading involves risk.
Risk Disclaimer
