Key Takeaways
- ARK Invest acquired 243,707 shares of Nvidia (NVDA) on August 28, totaling approximately $53 million, following a 4.5% post-earnings decline.
- Nvidia’s Q2 results showed adjusted earnings per share of $2.22, surpassing the $2.10 consensus, while revenue hit $96.22 billion versus expectations of $92.17 billion.
- Nvidia’s CFO Colette Kress projected 70% revenue expansion for fiscal 2028, significantly exceeding Wall Street’s 44% forecast.
- JPMorgan elevated its price target for 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 exit from the competing chipmaker.
Cathie Wood’s investment firm executed a substantial Nvidia (NVDA) purchase last week. ARK Invest accumulated 243,707 shares on August 28, representing approximately $53 million at the day’s closing price of $217.55.
This strategic acquisition occurred just one day after Nvidia shares surged nearly 9% on impressive quarterly results before retreating 4.5%. Wood has consistently demonstrated a pattern of capitalizing on post-earnings volatility to expand positions in companies she views favorably for long-term growth.
By Monday’s premarket session, Nvidia was trading 0.5% higher at $218.70.
The semiconductor giant delivered fiscal second-quarter adjusted earnings of $2.22 per share, exceeding analyst expectations of $2.10. Total revenue reached $96.22 billion, surpassing the Street’s $92.17 billion projection.
However, the forward guidance stole the spotlight. CFO Colette Kress indicated that Nvidia anticipates fiscal 2028 revenue expansion of approximately 70%, substantially outpacing the 44% consensus forecast. She emphasized that customer demand trends suggest potential for even more aggressive growth, but current supply limitations represent the primary bottleneck.
CEO Jensen Huang reinforced this narrative, highlighting that demand persistently exceeds available supply.
Analyst Community Boosts Forecasts
Following the earnings release, JPMorgan upgraded its Nvidia price objective to $320 from $280 while maintaining an overweight stance. The investment bank cited accelerating data center demand momentum, robust orders for Blackwell Ultra processors, and a fiscal 2028 forecast that may prove conservative.
Bank of America’s Vivek Arya reaffirmed his buy rating with a $350 target, designating Nvidia as a “top pick.” His projections show earnings advancing at approximately 60% compound annual growth through 2028, resulting in a PEG ratio near 0.3 times compared to roughly 1 times for the broader S&P 500.
Arya acknowledged several headwinds: potential gross margin compression, escalating memory component costs, competition from custom silicon solutions, and expanding financial obligations.
Currently, Nvidia trades at a forward P/E multiple of 16.7 times, representing a discount to the S&P 500’s 19.7 times valuation, per FactSet data.
ARK Reduces AMD Exposure, Diversifies Holdings
Concurrent with the Nvidia purchase, Wood accelerated her exit from AMD. ARK offloaded 156,286 AMD shares on August 28, extending a divestment pattern that has persisted throughout 2026 after the firm accumulated substantial AMD holdings between 2023 and 2025.
ARK simultaneously increased stakes in Broadcom (AVGO), Cerebras Systems (CBRS), and Cloudflare (NET). The firm reduced holdings in Brera Holdings, Roblox, Twist Bioscience, and AMD.
Nvidia does not rank among the top 10 holdings within the ARK Innovation ETF. Tesla commands the largest allocation at 9.05%, trailed by Tempus AI and SpaceX.
Through August 28, ARKK has posted a 9.97% gain year-to-date, underperforming the S&P 500’s 12.65% advance. Over five years, the fund has generated an annualized return of -6.91%, compared to the S&P 500’s 11.33% performance during the identical timeframe.
Nvidia has climbed approximately 16.6% year-to-date, outperforming the S&P 500 but trailing AMD’s impressive 117.4% rally in 2026.
The elevated price targets from JPMorgan at $320 and Bank of America at $350 underscore sustained analyst optimism following the quarterly earnings outperformance.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
