US Markets
Home›US Markets›ETFs›Ark adds to Nvidia while trimming Roblox as AI concern…
Ark adds to Nvidia while trimming Roblox as AI concerns linger
Ark bought 80,000 shares of Nvidia across five funds, and Roblox booking growth stayed near the low end of guidance after the stock fell more than 50% year to date.
Cathie Wood's Ark funds are taking a contrarian stance as Wall Street debates whether rapid AI spending could eventually slow, Yahoo Finance reports. Ark recently bought 80,000 shares of Nvidia across five funds, while it reduced its stake in Roblox.
The Nvidia push comes as the outlet cites signs of strength beyond GPUs. Nvidia's data center networking revenue rose nearly 200% year over year last quarter, and roughly half of its data center revenue is described as coming from AI cloud plus industrial, enterprise, and sovereign customers rather than only the largest hyperscalers.
On the other side, the article frames the bear case for Nvidia around potential balance sheet pressure, including inventories that more than doubled year over year and prepaid expenses up more than 40%, tied to supply commitments. It also points to customer concentration risk and notes that non-marketable securities, mostly stakes in AI startups and infrastructure partners, make up 17% of Nvidia's total assets.
For Roblox, Yahoo Finance says the company missed expectations, with second-quarter bookings landing at the low end of guidance and up 8% year over year. Management removed its full-year outlook, the stock fell sharply and is down more than 50% year to date, and third-quarter bookings guidance indicates year over year decline of 14% to 18%.