Cathie Wood's
ARK
Invest has restarted its investments in
Nvidia
, directing $17 million toward the chip giant as part of a larger plan to benefit from the surge in artificial intelligence. This decision coincides with ARK
increasing its acquisitions
of crypto-related stocks, such as BitMine and Bullish, during a market slump. The company's latest trading activity shows strong faith in Nvidia's leadership in AI hardware, even as investor concerns about the longevity of the AI surge grow
according to recent reports
.
Nvidia's recent performance
has highlighted its crucial role, with revenue reaching $57 billion—$2.1 billion above Wall Street’s projections—driven by high demand for its Blackwell and Spectrum-X chips. CEO Jensen Huang pointed to "off-the-charts" Blackwell sales and fully booked cloud GPU supplies, while CFO Colette Kress mentioned that even six-year-old A100 GPUs are still in full use
according to Barrons
. These achievements sparked a brief 5% surge in shares after earnings, before broader market concerns caused a pullback
as reported by Forbes
.
The earnings release also disclosed a $500 billion backlog for Blackwell and Rubin chip orders through 2026,
strengthening Nvidia's standing
at the forefront of the AI industrial era. This momentum has drawn major collaborations, including a $15 billion investment from Nvidia and Microsoft in AI firm Anthropic,
the developer behind the Claude chatbot
. The partnership, part of a $30 billion deal to bring Anthropic’s models to Microsoft’s Azure cloud, signals heightened rivalry in the generative AI market
as noted by Free Malaysia Today
.
Analysts remain cautiously optimistic.
Raymond James reiterated a "Strong Buy" rating
with a $272 price target, highlighting Nvidia’s dominance in AI infrastructure and its two-year product cycle approach. Stifel increased its target to $250, pointing to the company’s $500 billion in total orders for Blackwell and Rubin platforms
according to Investing.com
. Still, doubts persist about whether the rapid growth of AI can be financially sustained,
with SoftBank and Peter Thiel's hedge fund recently offloading
their Nvidia holdings.
The mixed market response to Nvidia’s results reflects wider uncertainty. The company’s gross margin of 73.6% and adjusted net income of $32 billion impressed investors
according to Forbes
, but worries about a potential AI "bubble" resurfaced as shares swung from a 5% gain to a 3% drop within hours
as reported by Reuters
. These concerns are heightened by Nvidia’s revenue concentration—four clients made up 61% of Q3 sales
as noted by Reuters
—and ongoing questions about when investments in AI infrastructure will start to pay off
according to Seeking Alpha
.
ARK’s renewed emphasis on Nvidia fits with its broader commitment to AI’s long-term promise. The firm has also invested $46 million in Circle and increased its stake in
Ethereum
treasury company BitMine, wagering on the strength of crypto despite a $1 trillion downturn in digital assets
according to Yahoo Finance
. Wood’s approach reflects a belief that market volatility creates opportunities to invest in transformative technologies, even as economic and regulatory challenges remain.