Nvidia's market cap tops $1 trillion: Cathie Wood's explanation for why she missed the stock's rally
Yahoo Finance Live anchor Julie Hyman takes a look at several trending stocks including Nvidia, Tesla, Palantir, C3.ai, AMD, as well as Cathie Wood removing Nvidia from her Ark Innovation ETF holdings.
Video transcript
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JULIE HYMAN: Let's get to some trending tickers for you. From the Yahoo Finance homepage, Nvidia number one, and it's probably not even close here in today's session. The stock is up at about 6% and, as we've been talking about, has now reached $1 trillion. And it's the first chipmaker to get to that size of a valuation. It's only the ninth company to ever do so, as we have seen just this monster, monster rally in the shares year today, up 182%.
But it's not just Nvidia today that is trending. Basically, as we were just hearing Michael Arone talk about from State Street, anything that has to do with AI, we are seeing that rising tide lift many, many boats. Tesla's on the list. I guess it's sort of AI related, but also, Elon Musk is visiting China. That might be a bit of a spur for the stock.
Palantir, which is, I guess, seen by some as an AI play to some degree, those shares are up nearly 7%. And then, C3 AI, obviously, that stock has seen a big rally this year. It's up another 15%. One stock that is not participating today, AMD, interestingly enough. Those shares are down 1.5%, perhaps as it being seen that it has to do a little bit of catch up in the AI arena.
And then, there's another sort of AI related story that I want to talk about, and that has to do with Cathie Wood of ARK Invest who lightened up on, actually removed, Nvidia from her portfolio, the benchmark portfolio, earlier this year, before the bulk of this latest surge. And she reportedly making some comments that it was getting a little ahead of itself in terms of valuation and in terms of price action. So here's the existing ARK portfolio here, obviously, without having benefited from that.
And if we can take a quick check on the year to date here and how these various stocks have done, certainly, there have been some big winners. DraftKings has doubled this year, Coinbase a winner as well, Tesla up 62%. But that big 180% or so gain from NVIDIA, missing from this equation.
- Yeah, really going to be banking on the Tesla AI Dojo, I suppose--
JULIE HYMAN: Yes.
- --within the ARK fund.