How Kathy Wood’s decision cost investors $190 million in profits from Nvidia
Kathy Wood is the manager of one of the world’s most well-known investment funds, ARK Invest, trusted by many investors. However, in November 2022, she made a decision that deprived her investors of profits from the triple increase in Nvidia’s stock.
Nvidia, a company specializing in the production of graphics processors, has recently become one of the most successful companies in the chip market. In November 2022, the company’s shares were valued at $137 per share. However, Kathy Wood decided to get rid of 800,000 shares as she doubted the prospects of the chip market, which was slowing down in sales.
When she made this decision, she could not have imagined that it would lead to missed profits of over $190 million. Over the last 6 months, the company’s shares have steadily increased and were valued at $380 per share on May 26, 2023.
The company’s latest report and expectations for profits from the AI segment led to a 25% jump in share prices. If Kathy Wood had not sold the company’s shares in November 2022, her fund’s investors would have benefited from a triple increase in the value of the shares and earned over $190 million.
This case shows that even the most experienced and successful investors sometimes find it difficult to predict market behavior. Mistakes can be costly, and it is important not only to know how to make money but also to manage investments correctly.
Many experts note that the AI market segment will continue to grow in the near future, making Nvidia one of the main players in this market. Thanks to high-quality graphics cards and processors designed for use in AI technologies, the company has a chance to dominate the market in the coming years.
Overall, based on reports, the computer technology market will continue to grow in the near future, and Nvidia will be one of the main companies generating profits in this industry. This gives investors hope for the growth of their assets, which increases interest in the company’s shares. However, this also indicates that investors should be more cautious when making decisions to sell their shares in the future.