Cathie Wood said Nvidia Corp. is now an “obvious” artificial intelligence bet, and she’s buying up shares of other companies that can capture more upside from the potentially transformative technology.
The chief executive officer and founder of ARK Investment Management gained unwanted attention after closing out her flagship ARK Innovation ETF’s (ticker ARKK) Nvidia position back in January, missing the bulk of this year’s blistering rally. Now, Wood says, the chipmaker has “taken off,” leaving many other companies that will be huge beneficiaries of AI behind.
“We basically re-allocated into other AI plays that are not as obvious. Nvidia is very obvious now,” she told Bloomberg Television Monday, noting how the stock is trading at 25 times revenues.
Although Wood holds Nvidia across several of her smaller funds, investors in ARKK have mostly been left out of this year’s 218% rally in the semiconductor stock.
Wood also said that Tesla, ARKK’s top holding, is the “biggest AI-play opportunity out there.” She told Bloomberg Radio in a later interview that her best new investment idea is in Teradyne Inc., a company that designs semiconductor test products and services.