Cathie Wood’s Ark funds purchased 80,000 Nvidia shares while trimming Roblox holdings as AI infrastructure spending climbs.
Ark Invest acquired 80,000 shares of Nvidia (NVDA) across five funds, signaling confidence in AI-driven growth despite market concerns over a potential bubble. The move contrasts with reduced exposure to Roblox (RBLX), reflecting a shift in sector priorities.
Nvidia’s data center networking revenue surged nearly 200% year over year, with AI-related sales now accounting for roughly half of its data center revenue. Major tech firms, including Meta, Amazon, Microsoft, and Alphabet, plan to spend up to $725 billion on AI this year, up 77% from 2023, positioning Nvidia to capture 35% to 40% of that outlay.
Critics highlight risks, noting Nvidia’s inventories doubled year over year and prepaid expenses rose over 40%. Three customers represent 64% of accounts receivable, raising concerns about concentration risk if demand shifts toward custom chips.