Key Takeaways
- ARK Invest purchased 243,707 shares of Nvidia (NVDA) stock worth approximately $53 million on August 28, following a 4.5% decline after the company’s earnings announcement.
- The chipmaker delivered second-quarter adjusted earnings per share of $2.22, surpassing the $2.10 consensus, while revenue of $96.22 billion exceeded expectations of $92.17 billion.
- Nvidia’s CFO Colette Kress provided guidance indicating 70% revenue expansion for fiscal 2028, significantly outpacing the 44% analyst projection.
- JPMorgan increased its price target on Nvidia to $320, while Bank of America maintained its $350 target alongside a buy recommendation.
- On the same trading day, ARK divested 156,286 shares of AMD, extending its ongoing reduction in the semiconductor company.
Cathie Wood executed a significant transaction last week. Her investment firm ARK Invest acquired 243,707 shares of Nvidia (NVDA) on August 28, representing approximately $53 million at the day’s closing price of $217.55.
This purchase occurred the day following Nvidia’s nearly 9% surge on robust quarterly results, which was followed by a 4.5% retreat. Wood has consistently demonstrated a pattern of capitalizing on post-earnings volatility to accumulate shares in companies she views as long-term opportunities.
During Monday’s premarket session, Nvidia stock was showing a 0.5% gain, trading at $218.70.
The graphics processing unit manufacturer delivered fiscal second-quarter adjusted earnings of $2.22 per share, exceeding analyst projections of $2.10. Total revenue reached $96.22 billion, surpassing the Street’s $92.17 billion forecast.
However, the forward guidance proved even more compelling. CFO Colette Kress projected fiscal 2028 revenue expansion of approximately 70%, substantially exceeding the 44% consensus estimate among analysts. She emphasized that customer appetite indicates potential for growth to double, though supply chain limitations represent the primary constraint.
CEO Jensen Huang reinforced this perspective, stating that demand persistently exceeds available supply.
Analysts Elevate Price Projections
In reaction to these results, JPMorgan elevated its Nvidia price objective to $320 from $280, maintaining an overweight stance. The investment bank highlighted intensifying data center demand, robust orders for Blackwell Ultra processors, and a fiscal 2028 outlook it considers potentially understated.
Bank of America analyst Vivek Arya retained his buy recommendation and $350 price objective, designating Nvidia as a “top pick.” He forecasts earnings growth of approximately 60% annually from 2026 through 2028, which would place Nvidia’s PEG ratio at roughly 0.3 times compared to approximately 1 times for the broader S&P 500.
Arya did identify several potential headwinds: compressed gross margins, escalating memory expenses, competition from custom silicon solutions, and expanding financial obligations for Nvidia.
Currently, Nvidia trades at a forward price-to-earnings multiple of 16.7 times, beneath the S&P 500’s 19.7 times, based on FactSet data.
ARK Reduces AMD Holdings, Diversifies Portfolio
Alongside the Nvidia acquisition, Wood proceeded with her AMD reduction strategy. ARK divested 156,286 shares of AMD on August 28, extending a pattern that has persisted throughout most of 2026 after ARK accumulated a substantial AMD stake between 2023 and 2025.
ARK simultaneously expanded positions in Broadcom (AVGO), Cerebras Systems (CBRS), and Cloudflare (NET). The firm reduced holdings in Brera Holdings, Roblox, Twist Bioscience, and AMD.
Nvidia does not appear among the top 10 holdings within the ARK Innovation ETF. Tesla commands the largest allocation at 9.05%, with Tempus AI and SpaceX following.
As of August 28, ARKK has gained 9.97% year to date, underperforming the S&P 500’s 12.65% advance. The fund’s five-year annualized return stands at -6.91%, compared to the S&P 500’s 11.33% over the identical timeframe.
Nvidia has climbed approximately 16.6% year to date, outperforming the broader S&P 500 while trailing AMD, which has skyrocketed 117.4% in 2026.
The elevated price targets from JPMorgan at $320 and Bank of America at $350 underscore sustained analyst optimism following the earnings outperformance.
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