Cathie Wood Seizes Investment Opportunities Amid Stock Market Turmoil

The stock market has taken a nosedive, but this has not deterred famous investor Cathie Wood from making strategic investments. Instead, the CEO of Ark Invest is taking advantage of lower valuations of innovative companies that align with her investment philosophy. Wood is known for making long-term bets on potential winners, often going against the market sentiment.

Current Market Conditions and Economic Concerns

As the stock market faces declines, many investors may feel apprehensive. President Donald Trump’s tariffs on international imports have raised concerns about increasing consumer prices and elevated expenses for U.S. companies. Such factors could suppress consumer spending and put pressure on earnings, leading some economists to suggest that a recession may be approaching.

Despite these uncertainties, Wood is continuing her investment strategy, encouraging others to consider similar actions. Historical data suggests that markets have consistently recovered from setbacks, with quality companies leading the charge. Thus, this moment presents a potential opportunity for buying and holding investments long-term, well beyond the current market crisis.

Focus on High-Growth Technology Stocks

Currently, technology stocks, particularly in the booming field of artificial intelligence (AI), appear to be undervalued. Wood recently made two noteworthy purchases that reflect her focus in this area.

Image source: Getty Images.

1. Nvidia

This week, Wood acquired 188,980 shares of Nvidia (NASDAQ: NVDA) for her flagship Ark Disruptive Innovation ETF. Shares of Nvidia are currently trading at approximately 21 times forward earnings estimates, a significant decline from over 50 times earlier in the year. Nvidia ranks as the 31st largest holding in Wood’s portfolio, accounting for 0.7%. However, it remains a key player in AI innovation and qualifies for inclusion in her fund focused on disruptive technologies.

The company leads the AI chip market with high-performance products and commits to annual technology upgrades. Nvidia also offers integrated AI systems that expand beyond chips and include networking and enterprise software. This diversification has contributed to a surge in revenue, which reached $130 billion last year, alongside strong profitability, boasting a gross margin exceeding 70%.

Aiming for future growth, Nvidia is investing in quantum computing, establishing a research center in Boston to combine quantum capabilities with AI technology. Despite current market fluctuations, Nvidia is positioned for substantial long-term growth in these two crucial areas, making it an appealing investment opportunity for those seeking innovative firms at lowered valuations.

2. Amazon

Wood’s investment team also increased its stake in Amazon (NASDAQ: AMZN), purchasing 7,520 shares. This acquisition, albeit smaller, contributes to a much larger existing position, with Amazon representing over 2.4% of her portfolio as the 14th largest holding.

While Amazon is widely recognized for selling a variety of products, its biggest profit generator is the cloud sector, especially Amazon Web Services (AWS), which is heavily engaged in AI. AWS provides essential components for AI platforms, including premium chips from Nvidia, cost-effective AWS-developed chips, and a comprehensive managed service that allows customization for large language models. This robust offering propelled AWS to a revenue run rate of $115 billion last year.

With advancements in AI still in their early stages, Amazon’s position as the leading cloud provider positions it for significant gains in the future. Currently, Amazon’s stock trades at 26 times forward earnings estimates, down from over 38 times a few months ago. Wood is seizing this chance with a reliable company that has demonstrated its value over time and shows potential for long-term success.

Seize This Opportunity for Long-Term Gains

If you’ve ever felt that you missed an opportunity to invest in high-performing stocks, now could be your chance. Our team of analysts has issued “Double Down” recommendations for several companies projected to thrive shortly. Investing now may be advantageous, as historical data supports the potential for significant returns.

• Nvidia: A $1,000 investment made when we recommended it in 2009 would have grown to $249,730!*
• Apple: A $1,000 investment from 2008 would have turned into $32,689!*
• Netflix: A $1,000 investment back in 2004 would now be worth $469,399!*

Currently, we’re issuing “Double Down” alerts for three impressive companies that might not present another investment chance like this soon.

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*Stock Advisor returns as of April 5, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.