Cathie Wood Just Bought Nvidia Stock, Is It Finally Time to Buy?

Cathie Wood's Ark Invest has added Nvidia positions across five ETFs, signaling the firm views the chipmaker as undervalued after a 17% decline from its May peak. Ark is buying at a forward price-to-earnings ratio of 15-16x despite Nvidia maintaining 85% year-over-year revenue growth and more-than-doubled profits.

The purchase comes as Nvidia trades well off recent highs while fundamental performance remains robust. The company posted 85% revenue growth in its most recent report and expanded profits by over 100%, underscoring the strength of its AI accelerator business. Wood's firm appears to be treating the pullback as a buying opportunity, betting the valuation multiple has compressed faster than business momentum.

Headwinds remain visible. Supply chain constraints continue to pressure delivery timelines, and trade policy uncertainty adds macro risk to the hardware story. But Nvidia's dominant position in AI chips and strong forward guidance support the bull thesis that current multiples underprice growth durability.