NVIDIA's financial report drove a sharp rise in the stock price, followed by a pullback. Ark Investment ( ARK Invest ) chose to increase its position at this time point. Reports indicate that ARK purchased nearly 53 million dollars worth of NVIDIA stocks and simultaneously sold about 74.5 million dollars worth of AMD holdings, showing that it is reallocationing funds within the AI chip sector.

Pullback after financial report attracts buying interest

NVIDIA announced its financial results for the second fiscal quarter last week, with revenue reaching $96.2 billion, a year-on-year increase of 106%. The company's performance outlook also continues to reinforce market expectations for an expansion in infrastructure spending related to AI.

Driven by financial reports, NVIDIA's stock price rose 8.7% last Thursday, with a one-day market value increase of approximately $442 billion. By Friday, the stock price receded from some of its gains, falling 4.6% that day. The purchase at ARK occurred after this pullback.

From AMD to NVIDIA

The focus of this transaction is not just about buying on dips. While ARK increased its holdings in NVIDIA, it also reduced its stake in another chip company, AI AMD. This indicates that it is not merely about expanding its semiconductor exposure, but rather a more deliberate switch in positions.

Against the backdrop of ongoing market discussions about which companies will receive a larger portion of infrastructure spending in the next phase of AI, this adjustment carries certain directional significance. ARK has also previously indicated that AI is gradually shifting from thematic trading to a more long-term asset allocation approach, covering areas such as semiconductors, cloud infrastructure, robotics, and autonomous driving.

In contrast to bearish views

The actions of ARK have also made the divisions in the market regarding NVIDIA more apparent. Reports mention that well-known investor Michael Burry still maintains a bearish position on NVIDIA and other AI concept stocks, with core concerns being the valuation levels and whether the large-scale AI capital expenditures can continue.

ARK clearly takes the opposite stance. They quickly bought in during the rebound after the financial report, indicating that this institution tends to see short-term declines as an opportunity to increase their holdings, rather than a signal that AI trading has peaked. As of Monday, NVIDIA's stock price had recovered to near $220.