Cathie Wood's ARK Invest funds purchased 243,707 shares of Nvidia (NVDA) on August 28, a position worth approximately $53 million based on the closing price of $217.55. The purchase came one day after Nvidia stock jumped nearly 9% on strong earnings, then pulled back 4.5%. Wood has a habit of using post-earnings dips to add to positions she believes in over the long term. ARK discloses its fund trades daily, which is how the buy became public.

As of Monday morning, Nvidia stock was trading up 0.5% at $218.70 in premarket activity.

Nvidia's Earnings Beat and Outlook

Nvidia reported fiscal second-quarter adjusted earnings of $2.22 per share, beating the $2.10 estimate. Revenue came in at $96.22 billion, above the $92.17 billion Wall Street expected.

The bigger story was the outlook. CFO Colette Kress said Nvidia expects fiscal 2028 revenue growth of around 70%, nearly double the 44% analyst estimate. She noted that customer demand is actually pointing to growth doubling, but supply constraints are the real limiting factor. That framing marks a shift in how investors weigh Nvidia's story: the debate is no longer only about whether AI demand materializes, but whether the supply chain — chips, memory, and manufacturing capacity — can keep up.

CEO Jensen Huang echoed that point, saying demand continues to outpace supply.

Wall Street Raises Targets

JPMorgan responded by raising its Nvidia price target to $320 from $280, keeping an overweight rating. The firm pointed to accelerating data center demand, strong Blackwell Ultra chip orders, and a fiscal 2028 outlook it views as potentially conservative.

Bank of America analyst Vivek Arya held his buy rating and $350 price target, calling Nvidia a "top pick." He projects earnings to grow at roughly 60% annually from 2026 to 2028, putting Nvidia's PEG ratio at around 0.3 times versus roughly 1 time for the S&P 500.

Arya did flag some risks: lower gross margins, rising memory costs, custom chip competition, and growing financial commitments from Nvidia. The custom chip competition he cites refers to large cloud providers designing their own AI accelerators, an emerging alternative to Nvidia's GPUs among some of its biggest customers.

Nvidia now trades at a forward price-to-earnings ratio of 16.7 times, below the S&P 500's 19.7 times, according to FactSet — a valuation that analysts like Arya argue understates the company's earnings growth trajectory.

ARK Trims AMD, Adds Elsewhere

While buying Nvidia, Wood continued trimming AMD. ARK sold 156,286 units of AMD on August 28, continuing a trend that has run through much of 2026 after ARK built a heavy AMD position between 2023 and 2025.

ARK also added to positions in Broadcom (AVGO), Cerebras Systems (CBRS), and Cloudflare (NET). It trimmed Brera Holdings, Roblox, Twist Bioscience, and AMD. The pattern is consistent with ARK's stated approach of rebalancing toward what it sees as the most disruptive AI hardware names — Nvidia and Broadcom among them — even as AMD's 2026 share performance has far outpaced Nvidia's.

Nvidia is not a top 10 holding in the ARK Innovation ETF. Tesla sits at the top with a 9.05% weight, followed by Tempus AI and SpaceX.

ARKK is up 9.97% year to date as of August 28, trailing the S&P 500's 12.65% gain. The fund has delivered a five-year annualized return of -6.91%, versus 11.33% for the S&P 500 over the same period.

Nvidia is up about 16.6% year to date, outperforming the S&P 500 but lagging AMD, which has surged 117.4% in 2026.

JPMorgan's raised target of $320 and Bank of America's $350 target reflect continued analyst confidence following the earnings beat. For ARK, the buy signals that Wood sees the post-earnings pullback as an entry point in a stock she expects supply, not demand, to eventually catch up on.