Nvidia and Cathie Wood: Jim Cramer strikes again?

Wall Street (and us a little...) likes to make fun of Jim Cramer, CNBC's star presenter, whose poor stock market predictions are often the subject of memes on social networks. And Wall Street also likes to make fun of Cathie Wood, the star manager of Ark Invest, when she bets on the wrong horse, or sends the right one to the cleaners.

When we learned that Ark Invest's flagship fund had sold most of its stake in Nvidia between November 2022 and January 2023, just before the latest rally in the processor maker's share price, we mischievously wondered if Jim Cramer had not professed his cursed oracle in the investor's ear.

But enough joking around, and let's give credit where credit is due. Cathie Wood hasn't cut up all her Nvidia holdings. While Ark Innovation, the company's flagship vehicle, has effectively divested itself of the chip giant, several of the group's American and Japanese funds still hold the stock and confess to its upside potential. The founder also says she is betting on the new stars of tomorrow, the Nvidia of the future, whose capitalization is still affordable. Her list includes UiPath, Twilio, Exact Science and Teladoc.

 

Drawing by Amandine Victor for MarketScreener