ARK Invest’s Bold Move: Cathie Wood Buys the Dip in CoreWeave
Cathie Wood is leaning toward volatility once more. After the Nvidia-backed AI infrastructure business stunned the market with a drastically lowered sales projection, she is stepping up her efforts on CoreWeave (CRWV) this time. Over the last month, the stock has fallen by more than 40%. Despite the short-term volatility that caused traders to flee, Wood’s aggressive accumulation indicates her belief that the long-term AI build-out is still intact.
CoreWeave Stock Drops, But ARK Invest Sees Long-Term Potential
Unlike many investors, Wood used ARK Invest to deploy millions of dollars. She purchased more than 350,000 shares at steep discounts. During times of extreme volatility, Tesla, Nvidia, and Bitcoin all employ the same “buy on the dip” strategy. Early-stage investors have since benefited greatly from these times. Reduced revenue projections for 2025 led to CoreWeave’s recent sell-off. Delays in data center deployment, not a decline in demand for AI, were the reason for these reductions.
Wood Stays Confident in CoreWeave Amid Temporary Setbacks
The company reported a remarkable year-over-year sales increase in spite of the negative guidance change. It also revealed a huge backlog of over $55 billion. This demonstrates the ongoing need for cloud services powered by GPUs. Wood is certain that the impact of this temporary operating constraint is negligible. She thinks it doesn’t significantly alter CoreWeave‘s long-term position in the stack of AI infrastructure.
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