Cathie Wood’s Ark buys more Nvidia shares while trimming a gaming stock, taking on the ‘AI bubble’ worry

Wall Street’s latest anxiety about artificial intelligence is whether the market is moving faster than real-world demand can monetize, with some investors debating the risk of an “AI bubble” and whether heavy corporate spending will pay off. Against that backdrop, Cathie Wood’s Ark Investment Management has taken a different tack in its latest reported trades, adding to Nvidia instead of fleeing the AI trade entirely.

According to a report by Yahoo Finance, Ark recently bought 80,000 shares of Nvidia (NVDA). The move is framed as a counterpoint to the notion that AI-related momentum will stall soon, suggesting the fund is still betting that Nvidia’s role in the AI buildout will remain central enough to justify incremental exposure.

The same report also said Ark sold a separate position tied to the gaming sector, describing it as a gaming stock. The specific name and share amount of the sold position were not provided in the information available for this story, so it is not possible to confirm which company Ark exited or how large that trim was relative to the Nvidia addition.

Nvidia itself positions its products around data-center accelerated computing, with its GPU and software ecosystem used broadly for training and running AI workloads. Its public-facing newsroom material, including updates from its blog, emphasizes ongoing work across AI and accelerated computing platforms, which helps explain why Nvidia remains a common “picks-and-shovels” exposure in portfolios built around the AI infrastructure cycle.

If Ark is maintaining Nvidia exposure while trimming a gaming-related holding, the underlying portfolio logic appears to be separating AI infrastructure demand from more cyclical consumer or entertainment-adjacent revenue streams. Gaming stocks can be sensitive to different drivers such as hardware refresh cycles, discretionary spending, and ad or engagement trends, while Nvidia’s AI narrative is more directly tied to enterprise and cloud infrastructure buildouts.

Still, investors should note what is not disclosed in the brief trade report. The available information does not include Ark’s stated rationale for selling the gaming stock, the cost basis or realized gains/losses from that transaction, or whether the trades were made within a specific Ark fund and account-level strategy.

More broadly, the story highlights how portfolio managers may respond to AI skepticism. Rather than treating “bubble” concerns as an exit announcement, some funds appear to adjust holdings within the AI complex, adding to companies viewed as core suppliers while reducing exposure to categories they believe are less aligned with near-term AI monetization.

Going forward, market participants will likely watch whether Ark continues adding to NVDA in subsequent reported rebalances, and whether the gaming stock exit points to broader caution about non-AI segments. The key question will remain whether Nvidia and other AI infrastructure suppliers convert spending momentum into sustained earnings power, especially if growth expectations cool.