Cathie Wood, the founder of Ark Invest, has made notable moves in the artificial intelligence (AI) sector, recently selling shares in several high-profile AI stocks amid a market decline. Last week, her flagship Ark Innovation fund saw significant reductions in positions, including 120,936 shares of Nvidia and 60,348 shares of Meta Platforms, among others. While these sales may raise eyebrows, Wood maintains a long-term investment strategy, focusing on innovative companies and often buying on dips rather than chasing rising stocks.

This strategy highlights a potential shift in her portfolio as she seeks to capitalize on new opportunities within the AI space. Notably, she recently increased her stake in CoreWeave, a cloud capacity provider for AI workloads, signaling her continued belief in the long-term growth of AI despite short-term market fluctuations.

For market professionals, Wood’s actions serve as a reminder to maintain a long-term perspective when investing in volatile sectors like AI. As the Nasdaq faces corrections, evaluating risk tolerance and considering both established leaders and emerging players could be crucial for navigating this evolving landscape.

Source: fool.com