Nvidia Corporation NVDA shares lost about 10% over the final two sessions of the trading week following the U.S. move to restrict chip sales to China.
Ark Stands By Nvidia: Undeterred by the weakness, Cathie Wood continued to bulk up on the stock on Thursday and Friday. The fund manager’s Ark Invest bought 21,026 shares of Nvidia, valued at over $2.9 million, on Friday, a daily trade disclosure showed.
The purchases were effected through the ARK Autonomous Technology & Robotics ETF ARKQ and ARK Next Generation Internet ETF ARKW.
On Thursday, the firm spent about $41.5 million on Nvidia, and bought 297,8181 shares in the process.
See also: US Restriction On Nvidia, AMD Selling Chips To China Poses Structural Risk For Semiconductor Industry, Analyst Says
Analysts Mixed On Nvidia’s Future The China ban could be an overhang on Nvidia in the near term. Sell-side analysts are mixed about the GPU chip maker’s fundamentals.
“Nvidia will be fine. Their chips and technology are that good,” co-founder and CEO of Gerber Kawasaki Wealth and Investment Management said recently.
He is of the view the negativity is overdone and that the company has “crucially important” products.
Needham analyst Rajvindra Gill said he sees the government’s stance presenting significant headwinds to Nvidia’s business. Citing this, the analyst lowered his data center-related estimates and reduced the price target for Nvidia shares from $185 to $170.
Nvidia closed Friday’s session down 2.08% at $136.47, according to Benzinga Pro data.
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