- Cathie Wood of ARK Invest capitalized on a tariff-induced dip, buying 152,000 Nvidia (NVDA) shares for $14.84 million and 16,900 Amazon (AMZN) shares for $2.96 million, despite a nearly 12% drop in NVDA and 9% in AMZN in the last five trading sessions.
- Nvidia rose 4.46% to $102 and Amazon 3.77% to $181.85 this morning, yet Wood’s purchases contrast with retail investors’ retreat from tech giants amid Trump’s “Liberation Day” tariffs impacting the Magnificent 7 stocks.
- Her strategy reflects confidence in Nvidia’s AI dominance and Amazon’s e-commerce and cloud strength, prioritizing long-term growth in disruptive sectors over short-term tariff uncertainties.
Cathie Wood, the prominent hedge fund manager behind ARK Invest, has seized the opportunity presented by recent market turbulence, aggressively buying into Nvidia and Amazon amid a tariff-driven sell-off that has rattled the so-called Magnificent 7 stocks. With Nvidia (NVDA) shares climbing 4.46% to $102 and Amazon (AMZN) rising 3.77% to $181.85 this morning, Wood’s firm disclosed purchases of 152,000 Nvidia shares and 16,900 Amazon shares, translating to $14.84 million and $2.96 million respectively, based on closing prices from April 7. Her moves come despite a broader decline triggered by President Trump’s reciprocal tariffs announced on “Liberation Day,” which have shaved 11.4% off Nvidia’s stock and 8.80% off Amazon’s since April 2, wiping billions from the tech giants’ collective market value.
Wood’s strategy stands in stark contrast to the caution gripping retail investors, who are shying away from these large tech names as the tariffs threaten to disrupt global supply chains and profitability. Undeterred, she appears to view the dip as a buying opportunity, consistent with her long-standing focus on disruptive growth stocks in sectors like artificial intelligence – where Nvidia excels with its cutting-edge GPU technology – and e-commerce, dominated by Amazon’s vast logistics and cloud computing empire. The tariffs, intended to reshape trade dynamics, have introduced uncertainty, particularly for tech firms reliant on international manufacturing and markets, yet Wood’s purchases suggest confidence that these companies’ innovation and market dominance will weather the storm.
Nvidia’s role as a leader in AI hardware, powering everything from data centers to autonomous vehicles, aligns perfectly with Wood’s investment thesis, which prioritizes transformative technologies over short-term policy shocks. Similarly, Amazon’s sprawling ecosystem, bolstered by its AWS cloud division, remains a cornerstone of the digital economy, potentially insulated from tariff pressures by its diversified revenue streams. While the market grapples with the fallout of Trump’s policies, Wood’s $17.8 million combined investment reflects a calculated bet that these stocks’ long-term growth trajectories outweigh the immediate risks, a perspective that has historically set her apart from more conventional fund managers navigating an increasingly volatile landscape.
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