Cathie Wood, founder of ARK Invest and widely known for her "buy the dip" strategy, has once again leaned into market volatility. Her flagship ETF recently purchased 350,734 shares of CoreWeave (CRWV-US), worth nearly $24 million, after the stock tumbled close to 30% in recent sessions, hitting a six-month low.
Adjusting the Portfolio
Wood’s latest moves weren’t limited to CoreWeave. She also trimmed several positions:
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GitLab (GTLB-US): Sold 670,144 shares for $28.49 million.
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Exact Sciences (EXAS-US): Sold 227,153 shares for $22.87 million following Abbott’s $21 billion acquisition.
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Iridium Communications (IRDM-US): Sold 169,485 shares for $2.68 million.
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AMD (AMD-US): Sold 1,623 shares for $334,370.
At the same time, Wood has maintained her conviction in Nvidia (NVDA-US). Back in August, she added 93,374 shares for roughly $17 million, underscoring her focus on AI infrastructure despite sector volatility.
CoreWeave’s Role in AI Infrastructure
CoreWeave builds large-scale data centers powered by Nvidia GPUs, leasing computing capacity to AI firms. Nvidia itself is a major shareholder, holding 24.28 million CoreWeave shares valued at nearly $3.3 billion—about 6% of CoreWeave’s total equity.
In September, Nvidia and CoreWeave struck a $6.3 billion agreement under which Nvidia will acquire unsold cloud capacity through 2032. Nvidia CEO Jensen Huang has praised CoreWeave as an "outstanding startup" within its AI ecosystem.
Challenges Ahead
Despite its strategic importance, CoreWeave has struggled to meet investor expectations. Third-quarter revenue rose to $1.36 billion, but the company remained unprofitable, posting a net loss of $0.22 per share. Management also lowered its 2025 revenue forecast to $5.05–$5.15 billion, below Wall Street’s consensus.
These weaker projections have weighed on sentiment, contributing to the recent sell-off that Wood seized as a buying opportunity.
Wood’s AI Conviction
Wood has acknowledged that the AI sector may face corrections, but she remains confident in its long-term trajectory. Her moves suggest a strategy of rotating out of weaker or fully valued positions while doubling down on companies tied directly to AI infrastructure.
By adding CoreWeave alongside Nvidia, Wood is positioning ARK Invest to benefit from the next wave of AI-driven demand, even as near-term volatility rattles investors.
The Bottom Line
Cathie Wood’s latest trades highlight her willingness to lean into risk when others pull back. While CoreWeave faces profitability challenges and lowered forecasts, its deep ties to Nvidia and role in AI infrastructure make it a strategic bet.
For investors, the message is clear: Wood continues to see AI infrastructure as a long-term growth story, even if the path is bumpy.