Cathie Wood’s ARK Invest funds cut their stake in chipmaker NVIDIA Corporation (NASDAQ:NVDA) ahead of its results, with the group already warning on second-quarter figures.
Nvidia is set to report its figures after the market close in the US today.
The ARK Innovation ETF sold US$40mln worth of Nvidia, while the ARK Next Generation ETF sold US$11mln worth of shares.
The microchip industry is experiencing a slowdown in growth, according to figures from The World Semiconductor Trade Statistics.
Sales growth is expected to slow to 14% this year and 5% in 2023 after experiencing a 26% growth last share.
Nvidia already flagged that quarterly revenue will fall US$1.4bn short of the US$8.1bn guided, as sales of gaming chips weakened.
Profit margins are expected to be softer too, hit by a running down of excess inventory, while cost control will also be one of the key issues Wall Street will be watching.
As it warned of “ongoing macroeconomic uncertainty” last time, this is projected to play out with lower spending on hardware, hitting demand for chips.
Nvidia's graphics cards are also used extensively in crypto mining, so the wobble in all things bitcoin has had a clear effect on trading.
Nvidia’s shares have nosedived 42% in the year to date.