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Investing.com-- Cathie Wood’s ARK fund purchased more shares in NVIDIA Corp (NASDAQ:NVDA) on Thursday, its first purchase since August, after the chipmaking giant clocked stronger-than-expected third quarter earnings.
The ARK Innovation ETF (NYSE:ARKK) purchased about $17.5 million worth of shares in Nvidia, amounting to over 93,000 shares, daily data from the ETF and aggregator Cathie’s Ark showed.
The move was the first purchase of Nvidia shares by any of Wood’s funds since August 4, and appeared to reiterate Wood’s bullish stance on Nvidia and artificial intelligence. Ark holds a combined 1 million shares in Nvidia through all of its funds, with the company being Ark’s 19th largest holding.
Nvidia shares fell 3.2% after wild swings on Thursday, as initial optimism over its earnings was vastly overshadowed by questions over rising inventory levels and fears of circular financing in the AI industry.
Comments from Nvidia CEO Jensen Huang, which downplayed concerns over a bubble and circular financing, did little to quell investor fears. Nvidia had in recent months pledged to invest in several of its key customers, mainly OpenAI.
The stock is nursing steep losses in recent weeks amid growing concerns over an AI-fueled bubble in tech valuations. Markets also questioned just how much of the hundreds of billions of dollars in spending on AI was justified.
Nvidia in particular was also pressured by several major investors selling their stakes in the firm before its earnings, chiefly Softbank Group and Peter Thiel. Investor Michael Burry, who famously traded the 2008 subprime mortgage crisis, had flagged a bubble in tech valuations, while disclosing a short position in Nvidia.
Tech stocks were also pressured by investors further paring back bets that the Federal Reserve will cut interest rates in December.