Yahoo Finance tech editor Dan Howley discusses news that Cathie Wood’s flagship ARK fund has sold Nvidia stock.

Video Transcript

RACHELLE AKUFFO: We're also watching Nvidia shares this morning as well, Dan.

DAN HOWLEY: That's right. Cathie Wood is offloading some of her shares of Nvidia. This is something that she's done previously as well, though. Nvidia has been one of her almost favorite stocks.

And it comes after Nvidia announced a number of new products at the CES, the Consumer Electronics Show. They showed off their new mobile processors as well as a new desktop processor. Talked about getting to work with Foxconn with their efforts to build an electric car using some of Nvidia's technology.

So there's been a lot of news about the company, but they are down dramatically year to date. Excuse me, over the last 12 months. I'm still in December for some reason. But over the last 12 months, they're still down very, very much. We're talking around 50% is as far as we've seen them.

So, you know, you can look at the chip market at this point, and you can try to think that we're at the worst part. But, you know, the supply-chain issues that have roiled the industry-- they're still trying to get over the huge amount of inventory that they have that they had built up expecting the demand. But now there's no demand, so they're just sitting there with all of this inventory that they're trying to work through. So Nvidia, Intel, AMD, a number of these chip companies are still suffering.

RACHELLE AKUFFO: Certainly keeping an eye on that glut, as you mentioned there, in the system.

A big thank you there to Dan Howley. Thanks so much.