Cathie Wood Increases Nvidia Holdings Amid Market Volatility
Cathie Wood, CEO and Chief Investment Officer of Ark Invest, leads a firm known for its selection of innovation-driven exchange-traded funds (ETFs). These funds often feature smaller, speculative companies in emerging sectors. However, Wood’s investment strategy also includes significant blue-chip stocks, including shares from one of the “Magnificent Seven” that she has recently added to her portfolio during a sharp sell-off in the Nasdaq.
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Recent Purchase of Nvidia Shares
Wood’s relationship with semiconductor giant Nvidia (NASDAQ: NVDA) has been complex. Despite maintaining a position in the company for years, she has sold more shares than she has bought in recent times. Notably, she reduced her Nvidia holdings significantly around November 2022, coinciding with the rise of artificial intelligence (AI) as a major market trend.
Since the beginning of 2025, Nvidia’s stock has faced pressure, influenced by factors including competition from Advanced Micro Devices, custom AI chips from cloud hyperscalers, and macroeconomic uncertainties surrounding President Donald Trump’s trade policies. With Nvidia’s shares now down 24% from their recent all-time high, Wood took this opportunity to purchase about 341,000 additional shares between April 7 and 8, effectively doubling Ark’s stake in the company.
Image Source: Getty Images.
Analyzing Nvidia’s Current Appeal
Looking at the macroeconomic landscape, the growth in the data center industry presents a favorable outlook for Nvidia, particularly concerning the market for AI accelerator chips. Major players like Amazon, Alphabet, and Microsoft have announced substantial investments in infrastructure to support AI, with Meta Platforms sharing a similar vision in its latest earnings call.
These Magnificent Seven companies could together surpass $320 billion in AI-related capital expenditures by 2025, all of which bodes well for Nvidia, as they form a significant portion of its customer base. Furthermore, Nvidia’s recent introduction of its latest GPU architecture, Blackwell, has seen sales exceed initial expectations. With the next-generation GPU architecture also on the horizon, Nvidia is set up for long-term growth amidst an ongoing AI revolution.
Despite positive business trends, Nvidia’s stock has suffered during the Nasdaq’s recent downturn, trading at a price-to-earnings (P/E) ratio of approximately 39— a level seldom seen in the last five years.
NVDA PE Ratio data by YCharts.
While Wood’s recent purchases of Nvidia may be modest compared to other significant investments in her portfolio, they are noteworthy. The underlying business remains strong, and given Nvidia’s current historical valuation, it appears too attractive to overlook, even for a risk-oriented investor like Wood.
Growth investors with a long-term perspective might find it worthwhile to align with Wood’s strategy and consider capitalizing on Nvidia’s decline. The outlook for both the company and the broader AI market seems promising, indicating that this moment in the stock market could present an advantageous opportunity for patient investors willing to navigate some volatility.
Is Now the Right Time to Invest in Nvidia?
Before deciding to invest $1,000 in Nvidia, it’s essential to consider the following:
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adam Spatacco holds positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool also recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool adheres to 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.
