Cathie Wood’s ARK buys Nvidia shares after Q3 earnings

Cathie Wood's ARK Investment Management has made headlines by purchasing shares of CoreWeave, a cloud infrastructure company backed by Nvidia, amidst a significant downturn in its stock price following a revised sales outlook. This acquisition comes as CoreWeave faces challenges in the AI market, which has recently seen volatility due to investor concerns about an AI bubble.

This week, President Donald Trump met with New York Mayor-elect Zohran Mamdani, highlighting unexpected similarities between them. Concurrently, Nvidia reported its Q3 2026 earnings, exceeding expectations, which initially boosted market sentiment. However, Bitcoin experienced a significant crash, and concerns arose regarding the Federal Reserve's potential interest rate cuts, leading to volatility in the markets.

Nvidia recently reported record earnings of $57 billion, significantly exceeding analysts' expectations and alleviating concerns regarding a potential AI bubble. This strong performance has generated excitement among investors and positively impacted market sentiment, particularly in the tech sector.

Cathie Wood's ARK Investment Management has sold its shares in GitLab while continuing its bullish investment strategy by acquiring shares of Nvidia Corp. for the first time since August. This decision reflects a shift in focus towards companies that align with ARK's growth-oriented investment philosophy.

The U.S. government is considering allowing Nvidia to sell its H200 chips to China, according to sources. This potential decision comes amid ongoing scrutiny of semiconductor sales to China, particularly in light of national security concerns. The H200 chips are significant for AI applications, and their sale could have implications for U.S.-China relations in the tech sector.

Nvidia CEO Jensen Huang expressed concerns about the company's position amid discussions of an AI bubble, stating that the market did not recognize the company's strong quarterly performance. Huang's comments were revealed in a leaked meeting, highlighting the challenges Nvidia faces despite its recent successes.

Investors are expressing concerns that the artificial intelligence (AI) sector may be experiencing a bubble, particularly affecting stocks associated with OpenAI, SoftBank, and Oracle. Despite strong earnings from Nvidia and the successful launch of Alphabet's Gemini 3 Pro AI model, stocks related to OpenAI are declining. This trend indicates a selective market reaction within the tech industry, raising questions about the sustainability of AI investments.

The Score is a weekly review highlighting significant stock movements and the news influencing them. This week, notable stocks include Nvidia, Constellation, Eli Lilly, and Gap, with Nvidia's performance particularly impacting market sentiment.