Cathie Wood took to social media site X to clear the air regarding Ark Invest's previous sale of Nvidia stock. NVIDIA stock has soared recently on the back of impressive earnings the company has announced. Amid soaring stock prices, Wood's Ark Invest may have missed out on huge profits from its last stock sale.
Cathie Wood recants NVIDIA stock sale
In a post to X on Monday, Cathie Wood said her company continues to benefit from Nvidia's profits. Wood also said ARK Invest bought Nvidia for about $5 a piece in 2014, when most investors valued Nvidia as a maker of PC gaming chips. she added, “Even after making more than 150 times the profit, I continue to take profits with gratitude. Nvidia For companies that are capitalizing on that amazing success. ”
The post shows that Wood bought Nvidia stock even though no one believed his company could have a material impact on the market. However, with its recent impressive earnings, Nvidia has proven that its AI revenue build is yielding one of the strongest growth opportunities in the market.
Related article: Ripple Ally reports that 10% of Koreans own XRP
Ark Invest's Nvidia stock sale
According to Business Insider, Cathie Wood has a history of advocating a five- to 10-year outlook, rather than short-term buying, selling, or holding stocks. Money management organizations have taken artificial intelligence as a major idea in recent years. The Ark Innovation ETF made a significant investment in Nvidia before selling all its holdings in January 2023. This was done after selling a significant amount from November 2022.
As of November 2022, Ark Innovation ETF held 772,884 shares of Nvidia stock, according to data from CathiesArk. On November 9th, the fund sold a significant portion of its NVIDIA stock along with its investments in several other Ark ETFs. The 772,884 shares are now worth $616.7 million. This means Cathie Wood's Ark Investments lost $506.8 million in expected proceeds by selling its NVIDIA stock early.
Nvidia earnings support AI market growth prospects
For the quarter, Nvidia brought in revenue of $22.1 billion and posted adjusted earnings per share (EPS) of $5.16. Analysts had expected sales of $20.4 billion and earnings per share of $4.60. His EPS for Nvidia in the same period last year was $0.88 compared to $6.1 billion, a significant increase. Nvidia's accomplishments were further evidenced by the company generating $27 billion in revenue for the entire 2022 fiscal year.
Nvidia's results solidified the idea that AI revenue will be the primary source of income for many in the race. Technology companies will soon need to accelerate their AI research to start monetizing AI.
