Cathie Wood’s Ark Investment Management added $53 million of Nvidia stock to its holdings on August 28, capitalizing on a post-earnings price pullback after the chipmaker reported fiscal second-quarter revenue of $96.22 billion. The major acquisition highlights Wood’s ongoing strategy of buying high-tech dips amid high volatility.
Ark Investment Management has stepped into the market volatility by expanding several of its major tech positions. Founder, CEO, and chief investment officer Cathie Wood purchased 243,707 shares of Nvidia on August 28, according to daily trading information published by the firm. Valued at approximately $53 million based on a closing price of $217.55, the trade followed a sharp single-day drop for the semiconductor giant.
The purchase came just a day after Nvidia reported fiscal second-quarter results that topped Wall Street expectations. Adjusted earnings reached $2.22 per share, surpassing the $2.10 estimate, while revenue climbed to $96.22 billion against expectations of $92.17 billion. Despite the strong print, the stock climbed nearly 9% on August 27 before falling 4.5% on August 28, creating an opening for Ark’s funds.
Broadcom and Cerebras Systems Additions Expand Ark Portfolio
Nvidia was not the only high-growth technology name catching Wood’s attention during recent market swings. Broadcom stock has cooled down significantly since peaking in early June, trading roughly 28% below its all-time high reached less than three months ago.
Underpinning Wood’s interest in Broadcom is an accelerating revenue trajectory. The semiconductor and tech infrastructure provider posted year-over-year revenue increases climbing from 20% in the second quarter of fiscal 2025 up to 48% in the second quarter of fiscal 2026. Analysts heading into the company’s upcoming earnings report are projecting an 85% jump in revenue and a 92% surge in earnings per share.
Ark also added to its stake in Cerebras Systems, an artificial intelligence chip developer that went public in May at $185. The stock opened at $350 on its first day and reached an intraday high of $386 before pulling back 53% to enter broken IPO territory. While Cerebras nearly doubled its revenue in its initial public quarter, thin margins and heavy customer concentration with two UAE clients accounting for nearly three-quarters of its revenue have kept investors cautious.
Wall Street Reaction and Long-Term Artificial Intelligence Outlook
Wood maintains an optimistic posture toward artificial intelligence as a primary economic engine. In an August 9 post on X, she noted that U.S. corporate profits remain strong, with domestic profits before tax sitting at 13.2% of gross domestic product near multi-decade highs. She argued that companies are leveraging AI and productivity gains to protect profit margins.
That thesis underpins funds that have weathered severe drawdowns in recent years, including a 60% tumble during the 2022 bear market and roughly $2.09 billion in net outflows over the 12 months leading up to August 27.
Financial institutions remain broadly bullish on Nvidia’s near-term trajectory following its earnings release. CFO Colette Kress noted during an earnings call that Nvidia expects fiscal 2028 revenue growth of 70%, comfortably outpacing the 44% consensus estimates among analysts.
Customers’ forecasts point to our growth doubling next year. However, as I mentioned earlier, we expect to grow approximately 70% as we are supply-constrained,
Colette Kress, CFO
Following those guidance figures, JPMorgan raised its price target on Nvidia to $320 from $280 while maintaining an overweight rating. Bank of America analyst Vivek Arya reiterated a buy rating and a $350 price target, labeling the company a top pick in a research note sent to TheStreet and projecting that earnings will expand at a roughly 60% compound annual rate through 2028.
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