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ARK Supports Nvidia's Dominance in AI Despite Concerns of a Market Bubble

ARK Supports Nvidia's Dominance in AI Despite Concerns of a Market Bubble

Bitget-RWA2025/11/21 12:56
By:Bitget-RWA

- ARK Invest re-allocates $17M to Nvidia , betting on AI-driven growth amid crypto-linked equity purchases during a market slump. - Nvidia reports $57B revenue, exceeding forecasts by $2.1B, with $500B Blackwell/Rubin order backlog and 73.6% gross margin. - $15B Nvidia-Microsoft Anthropic deal intensifies generative AI competition, while analysts raise $250-$272 price targets for AI infrastructure leadership. - Market anxieties persist over AI sustainability: 61% Q3 revenue from four clients, AI "bubble" f

Cathie Wood's

Invest has restarted its investments in , directing $17 million toward the chip giant as part of a larger plan to benefit from the surge in artificial intelligence. This decision coincides with ARK of crypto-related stocks, such as BitMine and Bullish, during a market slump. The company's latest trading activity shows strong faith in Nvidia's leadership in AI hardware, even as investor concerns about the longevity of the AI surge grow .

ARK Supports Nvidia's Dominance in AI Despite Concerns of a Market Bubble image 0
has highlighted its crucial role, with revenue reaching $57 billion—$2.1 billion above Wall Street’s projections—driven by high demand for its Blackwell and Spectrum-X chips. CEO Jensen Huang pointed to "off-the-charts" Blackwell sales and fully booked cloud GPU supplies, while CFO Colette Kress mentioned that even six-year-old A100 GPUs are still in full use . These achievements sparked a brief 5% surge in shares after earnings, before broader market concerns caused a pullback .

The earnings release also disclosed a $500 billion backlog for Blackwell and Rubin chip orders through 2026,

at the forefront of the AI industrial era. This momentum has drawn major collaborations, including a $15 billion investment from Nvidia and Microsoft in AI firm Anthropic, . The partnership, part of a $30 billion deal to bring Anthropic’s models to Microsoft’s Azure cloud, signals heightened rivalry in the generative AI market .

Analysts remain cautiously optimistic.

with a $272 price target, highlighting Nvidia’s dominance in AI infrastructure and its two-year product cycle approach. Stifel increased its target to $250, pointing to the company’s $500 billion in total orders for Blackwell and Rubin platforms . Still, doubts persist about whether the rapid growth of AI can be financially sustained, their Nvidia holdings.

The mixed market response to Nvidia’s results reflects wider uncertainty. The company’s gross margin of 73.6% and adjusted net income of $32 billion impressed investors

, but worries about a potential AI "bubble" resurfaced as shares swung from a 5% gain to a 3% drop within hours . These concerns are heightened by Nvidia’s revenue concentration—four clients made up 61% of Q3 sales —and ongoing questions about when investments in AI infrastructure will start to pay off .

ARK’s renewed emphasis on Nvidia fits with its broader commitment to AI’s long-term promise. The firm has also invested $46 million in Circle and increased its stake in

treasury company BitMine, wagering on the strength of crypto despite a $1 trillion downturn in digital assets . Wood’s approach reflects a belief that market volatility creates opportunities to invest in transformative technologies, even as economic and regulatory challenges remain.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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