When Nvidia reported earnings last week, Wall Street exploded.
The chip-makers, powered by a surge in demand for their artificial intelligence computer chips, reported a strong forecast for the current quarter alongside a double beat, and investors rejoiced.
Nvidia’s (NVDA) – Get Free Report stock surged 30% in the hours following the company’s earnings, and now, just a week later, has finally exceeded a $1 trillion market cap.
And while everyone else seems hyper-bullish on the tech company, Ark Invest’s CEO and lead investor Cathie Wood doesn’t think it’s all too special.
Saying that Ark Invest knew Nvidia was going to be a big player on the AI stage as early as 2014, Wood Tweeted that the stock is simply “priced ahead of the curve.”
“Other companies with visionary leaders, strong global distribution and, perhaps most important, large, high-quality pools of proprietary data should be big AI winners,” she said, “with revenues and earnings surprising significantly on the high side of expectations during the years ahead.”
The one big company with these valuable qualities for Wood is, of course, Elon Musk’s Tesla. Repeating that Tesla (TSLA) – Get Free Report will be poised to do $8-10 trillion in revenue by 2030 with its autonomous taxi business — which has yet to, well, exist — she said that Tesla is the “most obvious beneficiary of the recent breakthroughs in AI.”
Ark Invest has been dumping its holdings in Nvidia for months now — in October, it owned 1.3 million shares of the burgeoning chipmaker; last week, that number was down to less than 390,000.
Analysts estimated that Ark Invest missed out on around $200 million in profits by selling shares before Nvidia’s historic rise.