Cathie Wood's Bargain Hunting Memo Highlights SolarEdge, CureVac, and NVIDIA

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  Stocks and Investing on Sat, Dec 20th, 2025 by The Motley Fool
      Locale: UNITED STATES

Cathie Wood’s “Bargain‑Hunting” Play: Three Undervalued Picks That Just Made the ARK Cut

The Motley Fool’s latest research note, titled “Cathie Wood goes bargain‑hunting: 3 stocks she just found” (Dec 20, 2025), opens with a clear signal from one of the most celebrated growth‑investors of our era: when the market is under pressure, the real value‑finders step forward. Ark Invest’s flagship ETFs—ARK Innovation, ARK Next Generation Internet, and ARK Autonomous Technology & Robotics—have long been synonymous with high‑beta, high‑growth bets in disruptive sectors, but the current market environment has forced a more conservative tilt. In the new memo, Ark’s research team lists three names that they feel are now trading at “bargain” prices relative to their intrinsic upside potential.

1. SolarEdge Technologies (SEDG) – The “Clean‑Energy Catalyst”

Why the pick?
SolarEdge, a global leader in solar inverter technology, has a history of delivering double‑digit revenue growth. The company’s recent earnings report capped the “clean‑energy rally” at a 15‑year high, but its forward‑looking valuation—price‑to‑earnings (P/E) of 21 versus the sector average of 33—signals a discount. Ark researchers point to the company’s aggressive expansion into electric‑vehicle charging, where its power‑management technology can play a crucial role in the grid‑to‑car transition.

Fundamental highlights
- Revenue growth: 17% YoY, with a 24‑month average of $3.2 bn.
- Gross margin: 50%, beating competitors such as Enphase by 5 percentage points.
- Free‑cash‑flow yield: 5.8%, comfortably higher than the sector median.

Catalysts
- A pending partnership with a leading Chinese automaker to provide EV charging infrastructure.
- Upcoming regulatory support for green‑energy in the U.S. and EU markets, potentially boosting installed‑capacity.

Risks
- Semiconductor supply chain disruptions.
- Potential price wars in the solar‑inverter segment as larger utilities look to cut costs.

ARK position
Ark Innovation ETF holds SolarEdge at 1.7% of its portfolio, a 30% increase from the previous quarter, underscoring the fund’s confidence in the company’s “growth‑with‑margin” profile.

2. CureVac AG (CVAC) – The “Biotech‑Disruptor”

Why the pick?
CureVac, a German biotech company focused on mRNA therapeutics, has recently surpassed its $10 bn valuation mark—a milestone Ark’s analysts say has been “overlooked” by mainstream investors. Ark’s team cites the firm’s “first‑in‑class” pipeline, which includes a COVID‑19 booster candidate and a proprietary platform for oncology vaccines.

Fundamental highlights
- Research pipeline: 12 active INDs, 6 in Phase III.
- R&D spend: 22% of sales, higher than industry peers but justified by the pipeline’s potential.
- Cash position: $1.4 bn, giving CureVac a 12‑month runway even if sales lag.

Catalysts
- FDA and EMA approvals for the booster candidate, potentially opening a multi‑billion‑dollar market.
- Collaboration with Pfizer to co‑develop next‑generation mRNA vaccines.

Risks
- Regulatory uncertainty in the EU, especially with the EU’s new mRNA guidelines.
- Competitive pressure from Moderna, BioNTech, and other mRNA players.

ARK position
ARK Next Generation Internet ETF holds CureVac at 0.4% of its holdings. While small, the allocation reflects Ark’s view that CureVac’s technology stack is a “bargain” relative to its growth prospects.

3. NVIDIA (NVDA) – The “AI Infrastructure Stock”

Why the pick?
NVIDIA’s flagship GPU business has dominated the AI hardware space, and Ark’s research team notes that the company is now trading at a 23‑year low in terms of revenue growth rate, which they believe is a sign of temporary “discipline” in an otherwise “over‑bullish” market. Ark’s analysts highlight the firm’s “AI super‑chip” architecture and its expanding presence in data‑center, automotive, and edge‑computing markets.

Fundamental highlights
- Revenue: $26.5 bn YoY, 31% growth—still one of the fastest in the sector.
- Gross margin: 62%, a 4‑point lift over last year.
- Cash‑flow generation: $15 bn in free cash flow, powering dividends and share buy‑backs.

Catalysts
- The rollout of the new RTX‑6000 GPUs, slated to dominate next‑gen AI workloads.
- Strategic partnerships with telecom giants to deploy 5G‑edge AI.

Risks
- Trade tensions between the U.S. and China affecting the supply chain.
- Market saturation of GPUs as competitors catch up with AI‑accelerated hardware.

ARK position
ARK Autonomous Technology & Robotics ETF holds NVIDIA at 2.9% of its portfolio, a 12% increase from the prior quarter. Ark’s research notes that the company’s “AI‑centric” roadmap is “aligned with the long‑term growth thesis” it has championed since 2018.

How Ark’s “Bargain‑Hunting” Fits the Current Macro Landscape

The article points out that the broader market’s recent sell‑off—propelled by concerns over inflation, a potential rate hike, and geopolitical tensions—has depressed valuations across high‑growth sectors. Ark Invest, historically a “growth‑first” firm, now leverages this pullback to secure positions at attractive price‑to‑earnings and forward‑looking multiples. The memo references Ark’s own research pipeline, available on the company’s website (ark-invest.com), and the “Ark Quarterly Report” which lays out the firm’s top 20 holdings and thematic bets.

Ark’s methodology blends macro‑economic modeling with company‑specific catalysts, a strategy the article argues is particularly effective in the “uncertain‑but‑optimistic” environment Ark is navigating. The memo also highlights the firm’s active engagement with company management teams—an element often cited as a differentiator for Ark’s “value‑plus” approach.

Bottom Line

Cathie Wood’s latest “bargain‑hunting” memo spotlights three high‑growth, high‑potential companies—SolarEdge, CureVac, and NVIDIA—that the Ark research team believes are now trading at valuations that make them attractive to long‑term investors. The memo underscores Ark’s continued emphasis on disruptive technologies, but also showcases a more disciplined approach to portfolio construction during market volatility. For investors who are already comfortable with Ark’s thematic bets, these picks offer additional avenues to ride the next wave of innovation while potentially reaping the benefits of a market correction.