Why is Cathie Wood Replacing her Tesla Shares with Nvidia?


Cathie Wood is replacing her Tesla stock with Nvidia shares. Yes, Wood is a big advocate for the electric carmaker, but now she thinks the company is in a cash flow spiral while the other is becoming a cash cow.
She used to have around 20% of the fund in Tesla but has been reducing that amount in the past six months. The investor still believes in the company’s potential but wants to diversify her holdings now, after her fund ARKK sees the most significant monthly outflow in Nearly a Year.
Why is Cathie Wood Replacing her Tesla Shares with Nvidia?
As well, Cathie Wood is buying more Nvidia stock on this tough trading day for graphics chips. On Thursday, Nvidia shares fell 7.7% after the US government imposed new licensing requirements for advanced semiconductors sold to China.
In the third quarter, the company warned that up to $400 million in sales could be at risk. Wall Street estimates third-quarter sales to reach $5.9 billion. A significant blow to Nvidia, as it looks to rebound from a disappointing second quarter.
sources:

https://www.nytimes.com/2022/08/31/technology/gpu-chips-china-russia.html

https://www.bloomberg.com/news/articles/2022-09-01/cathie-wood-s-arkk-sees-biggest-monthly-outflow-in-nearly-a-year

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