3 Reasons Cathie Wood’s Buying Nvidia Stock This Week | The Motley Fool

One of the most widely followed aggressive growth fund managers kicked off this week with a hankering for Nvidia (NVDA +1.90%). Cathie Wood — founder and CEO at Ark Invest — only added to two existing positions across her high-octane ETFs on Monday. Nvidia was one of those two purchases.

It wasn’t just a nibble. Ark Invest purchased shares of the world’s most valuable company in all five of its largest ETFs. This is the first time in almost two weeks that Wood has increased her stake in Nvidia. Let’s take a closer look at some of the potential reasons for Monday’s move.

1. There’s a new market opportunity

Shares of Nvidia moved 6% higher on Monday. Wood often adds to some of her largest investments when the shares are temporarily out of favor, but that obviously wasn’t the case here. The catalyst for Nvidia’s rally was the announcement of a push into the central processing unit (CPU) market for Microsoft PCs and laptops.

Its new Vera CPU is a high-performance processor, built for the new era of agentic AI that Nvidia itself is championing. The new CPU is reportedly 1.8 times faster and more efficient than legacy x86 processors. This is a highly competitive market, and margins aren’t likely to match those of its flagship businesses. It still offers a new potential market for Nvidia, and the incremental business merits the incremental upside.

Today’s Change

(1.90%) $4.26

Current Price

$228.62

Key Data Points

Market Cap

$5.4T

Day’s Range

$225.04 – $