Cathie Wood Adds to Nvidia, Bullish Signal Amid AI Boom?

Just two days apart, the direction of Cathie Wood's portfolio changed drastically. The founder of ARK Invest dumped nearly $75 million worth of Advanced Micro Devices shares overnight, then moved a portion of that fresh cash to buy 243,707 shares of Nvidia (NVDA) right as the price corrected 4.5% following its quarterly report. 

This swift move has reignited discussions among investors regarding the outlook for Nvidia stock, especially since Cathie Wood's decision to buy Nvidia came just one day after the chip giant's quarterly performance beat Wall Street expectations.

This article summarizes the details of ARK Invest's transactions, the reasons behind the surge in confidence in Nvidia, and how this stock fits within Cathie Wood's larger portfolio, which is still dominated by other names.

Key Takeaways

• ARK Invest bought 243,707 Nvidia shares worth approximately $53–55.6 million on August 28, 2026, precisely when the price corrected after the quarterly report.
• Nvidia reported revenue of $96.22 billion and guided fiscal 2028 revenue growth of around 70%, far exceeding analysts' estimates of only 44%.
• Despite the aggressive buying, Nvidia is not yet in the top ten holdings of ARKK, which is dominated by Tesla, Tempus AI, SpaceX, Circle Internet Group, and Coinbase.

Transaction Details: Buying Nvidia, Dumping AMD, Adding Broadcom

On August 28, 2026, ARK Invest funds bought 243,707 shares of Nvidia. The transaction value varies slightly depending on the source: TheStreet recorded it at $53 million based on the closing price of $217.55 per share, while BigGo Finance noted it at around $55.6 million. This discrepancy is normal as the two outlets used slightly different reference price points during the same trading session.

On the same day, ARK sold 156,286 AMD shares worth $74.5 million, following a smaller sale of $18.26 million the day before. 

These total disposals are equivalent to about 1.2% of the ARK Innovation ETF's total assets in a single trading session. This move makes strategic sense: AMD shares have soared 117.4% year-to-date, making profit-taking a logical choice.

In addition to Nvidia, ARK also added 55,131 shares of Broadcom (AVGO) worth $20.5 million ahead of that company's quarterly report on September 3, plus bought shares of Cerebras Systems and Cloudflare. Conversely, positions in Brera Holdings, Roblox, and Twist Bioscience were trimmed in the same session.

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Why Nvidia Became a Target? Quarterly Performance That Surprised Wall Street

This buying momentum did not come out of nowhere. On August 26, 2026, Nvidia released its fiscal second-quarter earnings with adjusted earnings per share of $2.22, beating analyst estimates of $2.10. Revenue hit $96.22 billion, far exceeding expectations of $92.17 billion, according to a CNBC report.

The stock jumped nearly 9% the next day before correcting 4.5% on August 28 — and it was this correction that Cathie Wood capitalized on. What made the market even more optimistic was the forward revenue guidance. 

Nvidia's Chief Financial Officer, Colette Kress, projected fiscal 2028 revenue growth of about 70%, far exceeding Wall Street estimates of only 44%. 

According to her, customer demand even shows potential for double-digit growth next year, but the company is still constrained by production capacity to meet all of that demand.

For the current quarter, Nvidia guided revenue of around $108 billion, above the analyst consensus of $104.19 billion.

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Analyst Reactions: Nvidia Price Targets Continue to Rise

Several research institutions responded to Nvidia's quarterly report by raising price targets. JPMorgan raised its target from $280 to $320 while maintaining an overweight rating, citing accelerating data center growth and high demand for the Blackwell Ultra platform.

Bank of America analyst Vivek Arya maintained a buy rating with a $350 target, calling Nvidia a top pick in its sector. 

He projects compound annual earnings growth of around 60% from 2026 to 2028, putting Nvidia's PEG ratio at around 0.3x, much cheaper than the S&P 500's ratio near 1x. 

Despite this, Arya also reminded of several risks, ranging from thinning gross margins, rising memory costs, to competition from custom chips made by Nvidia's own large clients.

The most aggressive target came from Melius Research analyst Ben Reitzes, who raised his target price to $420 from $400 — the highest level among all Wall Street analysts. He believes Nvidia will capture more than half of the AI market valued at over $2 trillion before 2030.

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ARKK's Performance and Nvidia's Position in Wood's Portfolio

Although this purchase appears aggressive, it is important to note that Nvidia is not even among the top ten holdings of the ARK Innovation ETF. 

Based on data as of August 28, 2026, the top positions are actually Tesla (9.05%), Tempus AI (6.10%), SpaceX (5.90%), Circle Internet Group (5.51%), CRISPR Therapeutics (4.77%), and Coinbase Global (4.70%) — the latter two names show that Cathie Wood is still maintaining significant exposure to the stablecoin ecosystem and crypto exchanges, even while actively rotating her semiconductor portfolio.

In terms of performance, Nvidia stock itself is up 16.6% year-to-date, far behind AMD which surged 117.4% and the Philadelphia Semiconductor Index which rose 81.9% over the same period. 

Meanwhile, the ARK Innovation ETF as a whole is up 9.97% year-to-date, lagging behind the S&P 500 which is up 12.65% according to Yahoo Finance. Over the past five years, ARKK's annualized return is even negative at -6.91%, well below the S&P 500's positive average of 11.33% according to Morningstar.

The fund has also recorded net outflows of approximately $2.09 billion over the past 12 months according to VettaFi, and according to Morningstar analyst Amy Arnott's research, ARKK is among the top four "biggest wealth destroyers for investors" over the past decade. 

Nevertheless, Cathie Wood remains optimistic, believing that AI adoption will continue to support the profit margins of large US companies in the coming years.

Read Also: 10 Free Bitcoin Mining and Faucet Sites 2026, Which Ones Are Legit?

Conclusion

Cathie Wood's move to scoop up Nvidia shares shortly after a strong quarterly report demonstrates her confidence in the long-term prospects of the AI sector, especially with Nvidia's revenue growth guidance far exceeding analyst estimates. 

However, this transaction needs to be viewed in a broader context: ARKK itself has lagged behind the S&P 500 in recent years, and Nvidia is not even a core holding in its portfolio. 

A bullish signal from one major transaction by a famous investor does not automatically guarantee future stock price direction, so investment decisions should still be based on individual research and risk tolerance.

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FAQ

1. Why did Cathie Wood buy Nvidia stock? 

Cathie Wood took advantage of the 4.5% price correction following Nvidia's quarterly report that beat Wall Street expectations. The management's guidance of fiscal 2028 revenue growth of 70% also reinforced her conviction.

2. How much was ARK Invest's Nvidia stock purchase worth? 

It was worth between $53 and $55.6 million for 243,707 shares, depending on the reference price point used by each outlet. The transaction took place on August 28, 2026.

3. Does Cathie Wood's Nvidia purchase signal that the stock is bullish? 

It shows confidence from one institutional investor in Nvidia's prospects, but it is not a guarantee of future price movements. Wall Street analysts did mostly raise their Nvidia price targets after the latest quarterly report.

4. How does Nvidia's stock performance compare to competitors like AMD? 

Nvidia is up 16.6% year-to-date, far behind AMD which surged 117.4% over the same period. Nevertheless, ARK Invest actually sold most of its AMD position and added to Nvidia.

5. Does ARK Invest also have exposure to crypto assets? 

Yes, two of ARKK's top ten holdings are Circle Internet Group and Coinbase Global. This shows that Cathie Wood is still maintaining exposure to the stablecoin ecosystem and crypto exchanges even while actively rotating her other tech stocks.