Cathie Wood Regrets Selling Nvidia Stock, Says She Would Have Held On If She Knew It Would Go Up
In a recent post on Twitter, Cathie Wood, the CEO of Ark Invest, expressed regret over selling her Nvidia stock, saying that she would have held on if she knew it would continue to rise. Wood’s comments come after Nvidia’s stock price has surged by 172% this year, making it one of the best-performing stocks in the market.
Wood’s post referred to Nvidia as a "check the box stock" with too much "hyperactivity," which she believes will eventually lead to an inventory correction. However, her bearish prediction has been proven wrong, and Nvidia’s stock has continued to soar.
Wood’s Ark Invest fund sold at least $4.5 million worth of Nvidia stock this year, missing out on the stock’s significant gains. In a podcast interview with The Wall Street Journal, Wood said that Nvidia has become a "check the box stock" and that she believes it will eventually experience an inventory correction.
However, Wood is not the only one who thinks Nvidia is overvalued. NYU finance professor Aswath Damodaran sold half his Nvidia stake last year after the company hit a $1 trillion valuation. Damodaran told CNBC that he cannot hold on to the stock and call himself a value investor due to its astonishing run-up.
Nvidia’s stock price has been driven by its dominance in the artificial intelligence (AI) market, with its graphics processing units (GPUs) being used in a wide range of applications, from gaming to data centers. The company’s stock has also been boosted by its partnerships with major tech companies, including Amazon and Microsoft.
Despite Wood’s regret over selling Nvidia stock, her Ark Invest fund has still managed to deliver strong returns this year. The fund’s Ark Innovation ETF has gained around 20% this year, outperforming many other ETFs in the market.
Overall, Wood’s comments serve as a reminder that even experienced investors can make mistakes, and that the stock market is inherently unpredictable.
