Cathie Wood is the founder and CEO of Ark Invest, an asset management company focused on disruptive technologies like artificial intelligence (AI). In a somewhat contrarian move, the company has been paring down its position in Nvidia for months and continued to do so throughout February.
Investors may find that surprising. Nvidia graphics processing units (GPUs) are the compute engines behind the most advanced AI systems, and the company holds an estimated market share in machine learning chips that exceeds 80%, according to The Wall Street Journal. But the stock is up some 400% over the last 18 months, so Wood and her team have been redeploying profits across other AI stocks.
For instance, Ark purchased shares of Palantir Technologies (NYSE: PLTR) and Pinterest (NYSE: PINS) throughout February.
1. Palantir Technologies
Palantir delivered better-than-expected results in its fourth quarter (ended Dec. 31, 2023). Its customer count jumped 35% to 497, and the average customer spent 8% more. In turn, top-line growth accelerated sequentially for the second straight quarter, with revenue rising 20% to $608 million. The company also achieved its fifth straight quarter of GAAP profitability, with net income tripling to reach $93 million.
Management attributed those strong results to momentum with its Artificial Intelligence Platform (AIP) product, which launched last year. CEO Alex Karp’s shareholder letter stated that demand for AIP is “unlike anything we have seen in two decades.” He also mentioned that the company has a more robust product pipeline today than at any point in history.
Palantir sees its software as fundamentally different from other products on the market. Its primary platforms (Gotham and Foundry) let customers integrate data and machine learning (ML) models to build ontologies, maps that link digital data to physical assets. Users can surface ontology data through analytical applications that improve decision-making. AIP brings support for large language models to those platforms.
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Forrester Research has recognized Palantir as a leader in AI/ML platforms, and Dresner Advisory Services has…
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