Guess Who Just Bought Nvidia Stock? An Investor Who Favors Innovators and Leads a Fund That's Climbed 100% Over 3 Years.

Core Insights - Nvidia has demonstrated significant revenue and profit growth, primarily driven by its leadership in the AI chip market, with the latest earnings report showing record revenue levels [2][3] - Cathie Wood, founder of Ark Invest, has increased her investment in Nvidia, reflecting confidence in the company's long-term potential despite short-term stock fluctuations [4][5] Company Performance - Nvidia's recent earnings report revealed double-digit revenue gains, with sales of its latest Blackwell platform described as "off the charts" by CEO Jensen Huang [3][6] - The company has a market capitalization of $4,436 billion, with a gross margin of 70.05% and a current stock price of $177.87 [8] Investment Activity - Cathie Wood purchased 93,374 additional shares of Nvidia, bringing her total holdings in the Ark Innovation fund to 620,955 shares, which now represent about 1.5% of the fund's portfolio [5] - The stock is currently positioned 22nd out of 48 holdings in the Ark Innovation fund [5] Market Outlook - Nvidia is expected to benefit from increased infrastructure spending in AI, with major cloud service providers committing to invest more in this area [8] - The company has a roadmap for annual updates to its AI chips, indicating a proactive approach to maintaining its competitive edge [8] Valuation Perspective - Despite recent stock price declines, Nvidia's valuation at 38 times forward earnings estimates is considered reasonable, presenting a potential buying opportunity for long-term investors [9]