Cathie Wood's ARK Invest made a notable post-earnings move on August 28, purchasing 243,707 shares of Nvidia worth roughly $53 million after the AI chipmaker pulled back 4.5% from a massive rally. The buy followed Nvidia's fiscal second-quarter results, which beat Wall Street expectations with adjusted EPS of $2.22 versus the $2.10 estimate and revenue of $96.22 billion, up 106% year over year, exceeding the $92.17 billion forecast.
The stock had surged 8.7% on Thursday, adding about $442 billion in market value in one session, before retreating Friday. Nvidia's guidance fueled analyst confidence: CFO Colette Kress projected around 70% revenue growth for fiscal 2028, well above the 44% analyst estimate, while CEO Jensen Huang said customer demand continues to outpace supply. JPMorgan raised its Nvidia price target to $320 from $280, and Bank of America maintained a $350 target with a buy rating, calling Nvidia a "top pick."
ARK's trade was not just a single-stock buy. The firm sold 156,286 AMD shares worth about $74.5 million the same day, while adding roughly $20.5 million in Broadcom and positions in Cerebras Systems and Cloudflare. That rotation sharpens the contrast between Wood's bullish AI infrastructure view and Michael Burry's bearish Nvidia position.
Nvidia traded around $218.70 to $220 Monday, up slightly in the session, suggesting ARK purchased near Friday's pullback. Nvidia's forward P/E stood at 16.7 times, below the S&P 500's 19.7 times, according to FactSet. Nvidia is not a top-10 holding in the ARK Innovation ETF; Tesla leads with a 9.05% weight. ARKK was up 9.97% year to date as of August 28, trailing the S&P 500's 12.65% gain.
