Ark Invest’s Cathie Wood, known for investing in next-generation technologies, missed out on the jaw-dropping gains of Nvidia, the biggest winner in artificial intelligence this year. Her flagship Ark Innovation ETF (ARKK ) exited Nvidia entirely in early January, after which the chipmaker continued to enjoy a strong rally that pushed its market capitalization to $1 trillion. She even pared Nvidia’s stake in her smaller fund on Thursday, when the stock surged 26% on the back of demand for AI chips. Ark autonomous technology. & Robotics ETF (ARKQ) now owns 4.4% of Nvidia, while its largest holding is Tesla with a weight of 14%. ARKK and ARKQ are up 8.9% and 5.8%, respectively, for the month, while Nvidia is up 40%. Wood revealed that she sold Nvidia because of its high valuation. Typically, though, growth investors like Wood aren’t worried about the stock’s price. “However, at 25 times this year’s expected revenue, NVDA is priced ahead of schedule,” she said in a Twitter post on Monday. NVDA YTD Mt. Nvidia Meanwhile, ARKK has no holdings on any of the semiconductor names and other AI-related stocks that have jumped alongside Nvidia recently, including AMD, TSMC or C3.ai. “Active management tries to find potential winners, but often misses security selection decisions,” said Todd Rosenbluth, director of research at VettaFi. “That’s why some investors are turning to broad-based thematic index ETF strategies. The reason.” According to Rosenbluth, the Global X Artificial Intelligence & Technology ETF (AIQ), the iShares Robotics and Artificial Intel Multisector ETF (IRBO), and the ROBO Global Artificial Intelligence ETF (THNQ) are three exchange-traded funds focused on artificial intelligence. They benefit from owning Nvidia. AI winners elsewhere? Wood said she believes there are better opportunities elsewhere to harness the AI boom. She called Tesla “the most obvious beneficiary of recent breakthroughs in artificial intelligence.” The innovative investor says the electric car company led by Elon Musk trades at six times earnings. She said she is betting on its self-driving ambitions as Tesla targets a total addressable market for self-driving cars of $8 trillion to $10 trillion in revenue by 2030. Wood has previously said that ARKK’s seventh-largest holding company, Exact Sciences, is also a biotech company. It is a leader in artificial intelligence for its cancer data and molecular diagnostic testing franchises. In its base case, Ark thinks Exact Sciences could grow at a 25% CAGR to $140 by 2027. The stock was trading at about $83 a share on Tuesday.