Nvidia Stock: Cathie Wood Lowers Stake in the Chipmaker and Also Trims Netflix

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Nvidia stock is moderately lower after Cathie Wood-led ARK Invest reduces exposure in the chip and graphics card maker, and also cuts its holdings of Netflix.

Nvidia  (NVDA) – Get Report stock was little changed after Cathie Wood-led ARK Invest reduced its exposure in the chip and graphics card maker as part of a broader adjustment of holdings within her ARK Next Generation Internet ETF  (ARKW) – Get Report and ARK Autonomous Technology and Robotics ETF  (ARKQ) – Get Report.

The highly popular asset manager sold 15,074 shares in Nvidia, estimated to be worth about $3.06 million, according to reports. Shares of Nvidia, which have risen 55.45% so far this year, closed 0.35% lower at $202.95 on Monday. At last check, Nivdia stock was down 0.34% at $202.26.

Together, the two ETFs held 229,899 shares, worth $46.2 million in Nvidia ahead of Monday’s trades. 

Nvidia stock has been range-bound in recent days on reports that the U.K. is considering blocking the Santa Clara, Calif.-based company’s acquisition of Arm Ltd. due to potential risks to national security.

An assessment of the $40 billion acquisition contains worrying implications for national security and the U.K. is currently inclined to reject the takeover, Bloomberg reported, citing a person familiar with government discussions. 

Despite the deal possibly falling through, TheStreet’s Jim Cramer said Nvidia is in a win-win situation: If it goes through, Cramer said, the Santa Clara, Calif., chipmaker sharply broadens its offerings. If it does not, it will save a bunch of money.

Nvidia is a so-called fabless chipmaker that makes graphics processing units, or GPUs, that makes video games more realistic. It also produces AI chips used in

supercomputers, data centers, drug development and autonomous vehicles.

Separately, New York-based ARK Invest also lowered its stake in online streaming service provider Netflix  (NFLX) – Get Report, cutting its holdings by 12.3% as it shed 14,762 shares – estimated to be worth about $7.68 million.

Wood sold Netflix through her ARK Next Generation Internet ETF and ARK Space Exploration & Innovation ETF  (ARKX) – Get Report. The two ETFs held a combined 119,881 Netflix shares worth $62.79 million. No other ARK ETF holds a stake in the company.

Netflix shares were down 0.46% at $517.60.

Nvidia is a holding in Jim Cramer’s Action Alerts PLUS investing club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

William Murphy

William Murphy

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