Cathie Wood Goes Bargain Hunting: 3 Stocks She Just Bought

Cathie Wood added to Nvidia, SpaceX, and Circle on Wednesday, with Nvidia rallying 33% since its spring low and trading ~10% below May’s all-time high (market cap back above $5T). By contrast, SpaceX is ~52% below its 52-week high and Circle is ~67% below its 52-week high, with near-term supply overhang risk as 900M+ insider shares are eligible for sale from the first lockup expirations this Thursday. The article frames these moves as long-term “broken IPO” opportunities, but near-term volatility is implied for both SpaceX and Circle.

Analysis

NVDA is the cleanest beneficiary here, but not because of the headline flow itself; the incremental signal is that a capital-intensive, switching-cost-heavy buyer is publicly standardizing on Nvidia. That strengthens the moat narrative and supports multiple durability, especially if the next earnings print confirms the current growth slope. The bigger second-order winners are the supply-chain bottlenecks around NVDA, not the stock alone: advanced packaging, HBM, and networking exposure should continue to capture scarcity rents if demand keeps outrunning supply.

SPCX looks like the weakest leg of the trio over the next 1-3 months because post-IPO supply still matters more than story. When a stock is below its issue price and lockups are opening, every incremental bid has to absorb potential insider distribution, which tends to cap rallies even if long-term TAM remains large. CRCL is more of a rate trade than a crypto adoption trade; if reserve yields roll over in a lower-rate cycle, the market may have to compress the multiple even before any slowdown shows up in reported growth.

The contrarian view is that the market may be over-crediting “broken IPO” rebound potential while underpricing cash-flow sensitivity. For CRCL, enthusiasm for digital assets can mask the fact that most current economics are a spread product, not an operating-innovation story. For NVDA, the risk is not competitive displacement in the next quarter, but whether expectations have gotten far enough ahead of earnings that a merely strong print is sold.

Catalysts split by horizon: NVDA has an earnings catalyst in the next few weeks; SPCX faces a 1-3 month supply overhang window; CRCL is a 6-18 month rates-and-regulation trade. What would falsify the NVDA thesis is any guide that implies growth deceleration or margin pressure from supply normalization. What would reverse the SPCX/CRCL bear cases is visible post-lockup demand absorption for SPCX and clear regulatory plus volume acceleration for CRCL.

Key Decisions for Investors

• Long NVDA into the next earnings window via a call spread on pullbacks; the risk/reward is best if the stock consolidates near current levels before the print. Falsify on a guide that implies growth normalization or gross margin pressure.
• Pair trade: long NVDA / short SPCX for 1-3 months. Same AI-capex theme, but NVDA has proven cash generation while SPCX carries lockup/supply overhang and much weaker near-term visibility.
• Tactically short SPCX into the first lockup-expiry window or use put spreads if borrow is expensive. Cover if post-lockup volume is absorbed without price deterioration or management provides concrete monetization milestones.
• Fade CRCL strength rather than chase it; consider a medium-dated put spread or relative short versus a higher-quality crypto platform if shares reclaim former IPO levels without a change in rate backdrop. The thesis breaks only if lower rates are offset by faster payment/transaction adoption or a regulatory catalyst.