Sell Nvidia and buy UiPath! "Tech stock goddess" can't even calculate the value of AI.
Wood said in February that although she still likes Nvidia, its valuation is "very high".
Before NVIDIA became the hottest company on Wall Street, ARK Investment Management, known as the "Tech Stock Goddess," invested in NVIDIA. Unfortunately, Cathie Wood had already cleared out her position in NVIDIA before its recent surge.
ARK (ARKK) exited its position in NVIDIA from November last year to January this year.
As investors believe NVIDIA is the biggest beneficiary of artificial intelligence growth, its valuation has reached nearly $1 trillion.
Last week, NVIDIA surged 25%, and this month it rose more than 40%.
This is an example of how difficult it is to value the trend of artificial intelligence, even for the most optimistic tech stock investors.
Wood said in February that although she still likes NVIDIA, its valuation is "very high."
Last Thursday, the ARK fund sold 65,632 shares of NVIDIA stock, worth nearly $25 million at the closing price that day.
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However, this does not mean that Wood does not want to follow the AI trend.
According to last Thursday's update, the ARK fund bought nearly 5 million shares in UiPath, an automation software supplier that is said to be integrated with AI.
As UiPath's second-quarter guidance was disappointing, its stock price performance was mediocre, and ARK seems to be buying on the dip.
However, in hindsight, Cathie Wood sold NVIDIA and bought a mediocre AI concept stock, which was not a profitable investment.
