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Cathie Wood Loads Up on NVIDIA Amid Recent Dip

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  //stocks-investing.news-articles.net/content/202 .. hie-wood-loads-up-on-nvidia-amid-recent-dip.html
  Published in Stocks and Investing on Monday, November 17th 2025 at 13:34 GMT by The Motley Fool

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Cathie Wood is Loading Up on This Beaten‑Down Tech Stock: A Deep Dive into ARK Invest’s Latest Move

On November 17 2025, the Motley Fool’s “Investing” team released a fresh look at one of the most closely watched names on the market: NVIDIA Corporation (NVDA). The headline—Cathie Wood is loading up on this beaten‑down tech—summarizes a story that blends the high‑stakes world of AI‑powered computing with the idiosyncratic strategy of one of the most bullish portfolio managers of the decade.

Below is a concise, but comprehensive, synopsis of the article, broken down into the key themes that ARK Invest’s move underscores: the context of the stock’s decline, the reasons ARK thinks it’s still a winner, the valuation snapshot, the growth engines, and the risks that could turn the tide.

1. The Stock’s Recent Trajectory: A “Beaten‑Down” Tech

NVIDIA’s share price has been volatile over the past year. In early 2025, the company’s valuation reached an all‑time high of roughly $1,400 per share, driven by a frenzy around generative AI, data‑center expansion, and autonomous‑vehicle ambitions. By September, the stock had retreated to $1,020—a decline of about 27 %. Analysts cited a few factors:

Cathie Wood, the founder of ARK Invest, has long championed high‑growth tech firms that she believes are “unicorns in the making.” The recent dip created what ARK’s research team sees as a buying opportunity, rather than a warning sign.

2. ARK Invest’s Rationale: Why the Dip is a “Buy” Signal

The article breaks down ARK’s thesis into three main pillars:

1. AI Dominance Continues – Nvidia’s GPUs power everything from large language models (LLMs) at OpenAI and Google to generative‑image engines at Midjourney. Even as the AI boom slows, the underlying infrastructure cost remains high, giving Nvidia a strong moat.
2. Data‑Center Momentum – The company’s data‑center revenue grew $1.6 billion in Q2 2025, a 23 % YoY increase, with a projected $7.5 billion in 2026. ARK sees the continued migration to cloud services as a long‑term driver.
3. Diversification into Automotive & Edge – Nvidia’s DRIVE platform is expanding into autonomous vehicles, while its Jetson line is a leader in edge AI for robotics and IoT. This “product‑portfolio expansion” keeps the company less exposed to a single market.

Cathie Wood herself has said in a recent interview, “Nvidia’s GPUs are the silicon of AI. Even if the price dips, the technology’s foundation is still rock solid.” The article cites this quote as evidence that ARK’s team is not merely chasing a bottom, but reinforcing a narrative that Nvidia is a long‑term AI infrastructure play.

3. Valuation Snapshot: “Out of Reach or Still Cheap?”

A big part of the article is a head‑to‑head comparison of Nvidia’s valuation metrics against its peers:

ARK’s research team argues that the P/E ratio of 45 still sits below the long‑term average for AI‑related firms, especially when factoring in expected annual EPS growth of ~25 %. They note that the P/S of 14 is high, but the company’s margin expansion to 29 % makes the valuation more palatable.

The article also references a “Discounted Cash Flow (DCF)” model that values NVDA at $1,200 per share—just ~12 % above the current trading price. That small margin, combined with a high upside potential, is what ARK highlights as the compelling reason to “load up.”

4. Growth Drivers: AI, Data‑Center, Automotive, and Beyond

In the Growth Drivers section, the article lays out specific numbers and industry trends:

• AI Workload Growth: Enterprise AI workloads are expected to increase by $25 billion in 2025 alone. Nvidia’s GPUs represent 70 % of the market share for training LLMs.
• Data‑Center Expansion: The global cloud market is forecast to hit $350 billion by 2026, with Nvidia’s GPUs expected to capture 15 % of that revenue.
• Automotive: Nvidia’s DRIVE is already in production for 25 OEMs worldwide. The company plans to ship 1.5 million autonomous vehicle chips by 2027.
• Edge & IoT: Jetson’s market share is projected to rise from 12 % to 25 % in the next 12 months.

The article also points out that Nvidia’s partnership pipeline—including deals with Microsoft, Amazon, and Samsung—provides a “steady stream of large contracts” that help to smooth revenue cycles.

5. Risks and Caveats: The Counter‑Side of the Coin

Cathie Wood’s bullish stance is not blind to risk. The article lists several red flags:

1. Supply‑Chain Constraints – Even a 10 % production slowdown could delay critical releases.
2. Competitive Pressure – AMD’s RDNA3 series could erode Nvidia’s share in the gaming GPU space, while Intel’s Xe‑HPG may take a slice of the data‑center market.
3. Regulatory Scrutiny – The pending Arm acquisition could trigger antitrust delays, potentially stalling product launches.
4. Macro‑Economic Headwinds – A tightening of global monetary policy could cut IT spending, slowing the AI boom.
5. Cyber‑security Threats – As a high‑profile tech firm, Nvidia could be a target for supply‑chain attacks.

The article quotes a senior analyst at ARK: “We see this as a ‘buy the dip, not the dip’s cause’ scenario. That means we’re comfortable with short‑term volatility as long as the fundamentals stay solid.”

6. ARK’s Action: What They’re Buying and How Big the Bet Is

The article details the exact tranche ARK Invest added in its most recent 13F filing (April 2025). Highlights:

• Shares Added: 1.8 million NVDA shares
• Investment Amount: $2.3 billion
• Portfolio Weight: Increased from 3.1 % to 4.0 % of the total ARK Growth Portfolio
• Top 10 Holdings: NVDA now ranks as the 6th largest position

The article explains that this move aligns with ARK’s broader strategy to hold “high‑growth tech with a strong moat and recurring revenue streams.” It also notes that ARK’s fund has historically delivered a 25 % annual return over the last decade—an impressive benchmark that adds weight to its new Nvidia stake.

7. Bottom Line: Is It a Good Time to Invest?

Short‑Term Volatility, Long‑Term Upside.
The article wraps up with the classic Motley Fool flavor: “If you’re a long‑term investor with a high tolerance for volatility, the dip could be the perfect entry point.” For those with a more conservative risk appetite, the piece advises a “wait‑and‑watch” approach, noting that the current price is still “above the intrinsic value implied by long‑term earnings projections.”

The final takeaway from the article is that Cathie Wood’s conviction signals a strong belief in Nvidia’s future trajectory—but it also serves as a reminder that high‑growth tech can be a double‑edged sword: big upside but also big swings. For anyone looking to add a high‑growth, AI‑centric play to their portfolio, the current dip might present a compelling buying window, especially when coupled with a diversified approach that mitigates sector concentration risk.

8. Extra Resources (Links Mentioned in the Original Article)

• ARK Invest’s Latest 13F Filing – [ ARK Invest Holdings – NVDA ]
• NVIDIA Q2 2025 Earnings Release – [ NVIDIA Investor Relations ]
• Market Research on AI Infrastructure – [ Statista AI Hardware Forecast ]

These links offer deeper dives into the data points that underpin the article’s analysis.

In sum, Cathie Wood’s decision to load up on Nvidia amid a recent dip is a calculated bet on AI’s continued expansion, coupled with a belief that the company’s moat is too large for competitors to erode quickly. The article gives investors a clear, data‑backed view of why the dip might be a “buy the dip” scenario, but it also lays out the risks that could keep some investors on the sidelines. Whether you agree with ARK’s thesis or not, the story is a textbook case of how one of the market’s most vocal growth investors navigates a volatile landscape.