Source: Sina Finance

Cathy Wood, founder of Ark Investment Management, is using Nvidia's stock rise to cash out profits. Continue to sell until the company's fourth-quarter results are announced$NVIDIA (NVDA.US)$stocks.

Notably, Nvidia's stock price has risen by nearly 47% this year so far, and has risen by about 252% over the past year. The chip giant will announce financial results for the fourth quarter of 2024 on February 21.

Wood recently admitted in an interview that Nvidia is a leader in the field of artificial intelligence. However, she sees Nvidia as a cyclical stock and anticipates that increased competition and inventory adjustments will present challenges. Wood confirmed that she recently sold approximately $4.5 million worth of Nvidia shares.

Although Wood continues to reduce Nvidia's stock holdings, analysts are optimistic about the company's outlook. Several analysts recently raised Nvidia's target price and maintained a bullish stance.

On February 16, Wade Bush raised Nvidia's price target from $600 to $800, Wells Fargo raised its price target from $675 to $840, Barclays raised its price target from $650 to $850, and Oppenheimer raised its price target from $650 to $850. These analysts expect Nvidia to post solid earnings and provide a promising performance outlook for the full year.

Currently, analysts expect Nvidia to achieve revenue of 20.37 billion US dollars in the fourth quarter, a significant increase from 6.05 billion US dollars in the same period last year. Driven by the demand for artificial intelligence computing, the strong momentum in the data center business will support the company's revenue growth.

The sharp increase in sales is likely to cushion its fourth-quarter profits. Wall Street expects Nvidia's fourth-quarter earnings of $4.59 per share, compared to $0.88 for the same period last year.

edit/ruby