Investor Cathie Wood Buys The Dip In Nvidia Stock

Closely followed investor Cathie Wood has been buying the dip in the stock of chipmaker Nvidia (NASDAQ: $NVDA). 

Wood’s asset management firm Ark Invest purchased $16.2 million U.S. worth of Nvidia shares as the price tumbled in recent days. 

Prior to this latest purchase, Ark Invest had not had a sizable position in Nvidia stock across its various funds.

However, Wood aggressively bought Nvidia’s stock as it fell nearly 5% on Nov. 9.

Nvidia’s share price dropped after the company’s board of directors said it is investigating CEO Jensen Huang's relationship with a woman who is alleged to be a Chinese spy.

The New York Times reported that Alice Huang, a Chinese businesswoman, was recruited by China's Ministry of State Security to gather intelligence on the Nvidia co-founder and CEO.

News of the internal investigation at Nvidia has raised concerns about Jensen Huang’s tenure as the company’s CEO. 

Huang co-founded Nvidia in 1993 and has built the company into the world’s leading manufacturer of microchips and processors that power artificial intelligence (A.I.) technologies. 

Nvidia’s stock has also been pressured recently by growing concerns among investors about the sustainability of the A.I. infrastructure buildout. 

NVDA stock is negative on the year and down 10% over the past 12 months, trading at $178.67 U.S. per share. 

As is often the case, Wood used the decline to snap up shares of a leading technology stock. 

Ark Invest is privately held and its own shares do not trade on a public exchange.