Many investors closely follow Cathie Wood. Head of Ark Invest, Wood has carved out a niche as one of the most prominent growth investors of the past decade. Accordingly, when she jumps into a stock such as Nvidia (NASDAQ:NVDA), investors in NVDA stock get excited.
There are a couple reasons for this. Many of Cathie Wood’s long-term picks have been dead on the money. While most of her portfolio is down big this year — and her flagship Ark Innovation ETF (NYSEARCA:ARKK) is also down more than 50% year to date — her returns over the past decade are remarkable.
Thus, for investors looking to take a risk-on view to this beaten-up tech sector, the ARKK ETF is one way to play this space. Wood’s new purchases of Nvidia appears to be a solid move, considering this stock’s rather impressive decline in 2022.
Let’s dive a bit more into what investors need to know.
Cathie Wood Buys Up NVDA Stock
One of the more interesting aspects of Cathie Wood’s respective funds is the transparency she provides. On a daily basis, Ark posts trades across its exchange-traded funds. This allows investors to see what the firm is doing.
Cathie Wood’s combined funds added more than 607,000 shares of NVDA this past week, with another 361,995 shares added on Friday alone. She added these shares in the ARKK ETF as well as in her ARK Fintech Innovation ETF (NYSEARCA:ARKF) and her ARK Next Generation Internet ETF (NYSEARCA:ARKW). This makes Nvidia one of the most aggressive recent adds.
Does this mean NVDA stock is bound to go up? Not necessarily — Wood’s recent performance hasn’t been great. However, over the long term, those taking the view that Wood will eventually be right may want to take a look at Nvidia here. It’s down 45% from its 52-week high.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.