Nvidia stock was gaining early Tuesday. The chip maker was getting a vote of confidence from fund manager Cathie Wood, as she trimmed holdings of its peer Advanced Micro Devices.
Nvidia shares were up 1.2% at $227.05 in premarket trading. The stock rose 6.3% on Monday after the company unveiled its new PC chip to take on Intel and AMD.
Cathie Wood’s ARK Invest is backing Nvidia to go further. Its funds acquired a total of 300,017 Nvidia shares on Monday, according to an update of its trades. That would represent a purchase totaling $63.3 million at Friday’s closing price of $211.14.
Meanwhile, ARK sold a total of 110,207 shares in AMD, worth $56.9 million at Friday’s closing price. AMD shares were down 0.8% at $506.36 in Tuesday’s premarket.
Overall, Wood’s ARK Invest still holds a much larger position in AMD than Nvidia. For example, the flagship ARK Innovation exchange-traded fund (ARKK) owns $362.1 million worth of AMD shares, making up around 5% of its total holdings and its third-largest position. ARKK has $125.7 million worth of Nvidia shares.
Wood, ARK’s CEO and chief investment officer, has built a reputation on the back of “moonshot” sectors such as genomics and robotics, bolstered by a bullishness on Elon Musk’s Tesla. However, that has delivered mixed performance. ARKK—Wood’s largest fund—has delivered an annualized loss of close to 11% over the past five years. But performance has improved recently with a return of 42% over the past year.
AMD stock fell 1.3% ahead of the open, while Intel was down 1.8%.
