1 “The Magnificent Seven” Artificial Intelligence (AI) Inventory She couldn’t cross during the sale of the Nasdaq
Cathie Wood is CEO and Chief Invest Officer of ARK Invest, offering a small catalog of funds (ETFs) trading on exchanges focused on innovation. Portfolios of these funds tend to be dominated by small, speculative companies in emerging industries.
These investment preferences may suggest that there is a desire for risk in the wood, but her funds also hold a lot. Blue chip stock – She includes “magnificent seven” strains, NasdaqA sharp selling.
Wood has an interesting relationship with the semiconductor giants nvidia(NASDAQ: NVDA). She has been a chipmaker for many years, but in reality she was a stock seller more frequently than a buyer.
Ironically, she dumped almost everything about Nvidia around November 2022 – ChatGpt was released, and artificial intelligence (AI) emerged as the next big megatrend.
Since its launch in 2025, Nvidia’s stock price has been under a lot of pressure due to many factors. China’s Deepseek model intensifies competition in the GPU space Advanced Micro Devices Cloud HyperSchool has designed its own custom AI chips and, more recently, designing macro uncertainties regarding President Donald Trump’s tariffs and trade policy.
Wood may now have a second chance as Nvidia is down 24% from an all-time high that hit a few months ago. Between April 7th and 8th, her funds purchased around 341,000 shares of Nvidia, essentially doubled Ark’s shares.
Image source: Getty Images.
From a macro perspective, secular tailwinds continue to support the growth of the data center industry, and Nvidia is well positioned to continue to capture the majority of the expanding market for AI accelerator chips. Think about what AI’s biggest spenders have on their sleeves. Cloud Hyper Scolor Amazon, alphabetand Microsoft Earlier this year, it announced it intends to continue investing heavily in infrastructure to support AI. Meta Platform It expressed a similar outlook in its fourth quarter revenue call.
Combined with these 4 magnificent 7 companies AI capital expenditure It could exceed $320 billion in 2025 alone. As each is a major Nvidia customer, I am optimistic about its outlook related to their data center build-out.
Additionally, Nvidia recently released its latest GPU architecture, Blackwell. And while Blackwell’s early indicators are encouraging, Nvidia is on track to provide a successor GPU architecture in a few years. This places nvidia well for robust long-term growth as the AI story continues to unfold.
Even in the face of encouraging business trends, Nvidia’s shares were destroyed during the ongoing sale of NASDAQ. It trades at a multiple of approximately 39 (P/E). This is rarely this low in more than five years.
Wood’s nvidia purchases aren’t necessarily greater than her core holdings, but her decision to buy shares this week’s consecutive day is very interesting. Nvidia’s underlying business looks solid and its inventory has historically been traded at a cheaper valuation, making it difficult to pass even for more speculative investors like Wood.
I think growth investors with long-term time horizons should consider tracking timber leads here and take advantage of Nvidia slides. The company’s long-term outlook and the AI narrative in general still look positive. In that context, current sour sentiment in the stock market appears to have created a potentially advantageous opportunity here for patient investors who suffer some degree of volatility.
Consider this before purchasing shares on Nvidia.
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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. Adam Spatacco It has positions for Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. Motley Fool has positions and recommendations from Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. To Motley’s fool Disclosure Policy.
