To The Moon

Hi Tigers 👋

Market volatility has intensified recently, but one investor has once again made a very typical contrarian move.

“ARK’s Cathie Wood” is buying again.

According to the latest ETF trading disclosures from ARK Invest, the firm continued purchasing shares of $NVIDIA(NVDA)$ during the recent market turbulence.

This once again raises a classic question among investors:

Is Cathie Wood’s strategy worth following?

Cathiewood

1. Why NVIDIA?

Over the past few years, one of the biggest winners of the AI boom has undoubtedly been NVIDIA.

As the leader in AI GPUs, the company has strong advantages in several areas:

• AI training chips

• Data-center GPUs

• AI computing ecosystem (CUDA)

At the same time, global technology giants are continuing to increase AI-related capital expenditures, including:

• Microsoft

• Amazon

• Alphabet

Demand for data-center computing power remains extremely strong.

For this reason, many institutions still view NVIDIA as a core company in AI infrastructure.

Cathie Wood clearly belongs to this camp.

2. Cathie Wood’s Investing Style: Buying the Dip

If you have followed Cathie Wood for a while, you’ll notice a clear pattern in her strategy:

Contrarian accumulation.

When markets panic and growth stocks pull back, she often increases positions in companies she believes in long term.

In recent years she has repeatedly bought during volatility in companies such as:

• $Tesla Motors(TSLA)$

• $Coinbase Global, Inc.(COIN)$

• $Roku Inc(ROKU)$

The logic is simple:

If you believe an industry will experience massive growth in the future, short-term volatility can actually create buying opportunities.

3. Why Has the Market Become More Skeptical?

Although Cathie Wood rose to fame in 2020 when technology stocks surged, the performance of ARK ETFs in recent years has been much more volatile.

High-growth technology stocks suffered significant drawdowns during the global interest-rate tightening cycle, which also led to large swings in ARK funds.

As a result, many investors today take a more cautious stance toward her views.

Her research may be deep, but her timing does not necessarily suit every investor.

In other words:

Her insights can be useful as a reference, but blindly copying trades may not always be appropriate.

4. What Can We Learn From This Move?

If we look beyond the “follow or not” debate, two signals stand out.

1️⃣ AI remains a powerful long-term theme

Even during periods of market volatility, many long-term investors are still accumulating core AI assets.

2️⃣ Institutions are focusing more on computing infrastructure

Companies like:

• $NVIDIA(NVDA)$

• $Broadcom(AVGO)$

as well as some data-center infrastructure firms continue to attract long-term institutional capital.

🐯 Let’s Hear Your View

If you saw Cathie Wood buying NVIDIA again, what would you do?

A. Follow — her research is very thorough

B. No — I prefer to make my own judgment

C. Use it as a reference but not copy it fully

Leave a comment below 👇

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