3 Stocks That Cathie Wood Is Buying During the Stock Market Sell-Off

1 week ago 7

Unlock banal picks and a broker-level newsfeed that powers Wall Street.

Rick Munarriz, The Motley Fool

Tue, Apr 8, 2025, 8:55 AM 5 min read

There is accidental successful the volatility. Cathie Wood is simply a wide watched maturation capitalist who has steered her Ark Invest household of exchange-traded funds to occurrence erstwhile equity prices are rising. She's besides not acrophobic to enactment wealth to enactment erstwhile stocks are sliding.

Wood added to her stakes successful Nvidia (NASDAQ: NVDA), Baidu (NASDAQ: BIDU), and Iridium Communications (NASDAQ: IRDM) connected Monday, a time that featured the market's widest plaything successful the past 5 years. The 3 stocks are trading good beneath their caller highs. Let's instrumentality a person look astatine the maturation prospects from these 3 investments astatine existent levels.

Shares of Nvidia person cooled down aft much than tripling successful 2023, and tacking connected different 171% leap past year. The chipmaker has fallen 27% this twelvemonth arsenic of Monday's close, down a blistering 36% since hitting an all-time precocious conscionable 3 months ago.

Nvidia is the country's 3rd astir invaluable institution by marketplace cap. Its rod presumption successful graphics processing units with gamers has widened implicit the years, and present it's the undisputed apical canine successful artificial quality (AI) chips. The surge successful request for information centers to crank retired generative AI is making Nvidia 1 of the world's fastest increasing megacaps. Nvidia is besides astatine the intersection of different booming trends from autonomous driving to virtual reality.

Someone approaching a piggy slope with a hammer down their back.

Revenue much than doubled for 5 consecutive fiscal quarters, decelerating to 94% and past 78% successful its past reports. Most companies would emotion to beryllium delivering year-over-year top-line gains of 78%, but tailwinds are bumping up against headwinds here. Against the backdrop of booming demand, Nvidia took an archetypal stumble successful January aft China's DeepSeek announced that it was capable to crank retired AI results with seemingly outdated Nvidia chips. The pullback has intensified connected the interaction of what the tariff-fueled commercialized warfare volition bash to planetary request for Nvidia's industry-leading solutions.

There is bully quality for opportunistic investors. Nvidia entered this volatile week trading for conscionable 21 times this year's net and 16 times adjacent year's target. It's a compelling worth proposition for a institution increasing arsenic rapidly arsenic Nvidia. Sure, the semiconductor manufacture itself is historically cyclical. However, determination should inactive beryllium a mates of much years of robust double-digit maturation arsenic agelong arsenic the tailwinds don't flooded the headwinds.

Baidu banal has fallen 31% from its October high-water mark, but the mathematics grows much unkind if you scroll backmost to its all-time high. China's starring hunt motor relation has plummeted 78% since peaking 4 years ago. Like Nvidia, Baidu is besides astatine the starring borderline of buzzy industries. More than conscionable a hunt engine, Baidu is simply a subordinate in autonomous driving, instrumentality learning, robotics, machine vision, and people AI arsenic well.