Cathie Wood, though upbeat about Nvidia Corp. (NASDAQ:NVDA), has sounded concerns regarding the valuation of the stock. In line with this thinking, the fund manager's Ark Invest offloaded more of the chipmaker's stock this week.

What Happened: Ark's Ark Genomic Revolution ETF (CBOE: ARKG) sold 3,412 Nvidia shares on Friday, valued at $1.56 million. Nvidia stock closed Friday's session at $455.72, down 1.45%, according to Benzinga Pro data.

With Friday's offloading, Ark's cumulative sale of Nvidia this week came in at 21,014 shares or $9.79 million worth of shares. ARKG now holds about 110,478 shares of Nvidia, which accounts for about 2.54% of the portfolio weighting.

Incidentally, Ark's flagship fund the Ark Innovation ETF (NYSE:ARKK) divested its entire Nvidia stake by early January 2023.

Nvidia currently is also part of the Ark Autonomous Technology & Robotics ETF (CBOE: ARKQ), in which it has a 2.85% weighting.

See Also: How To Buy Nvidia (NVDA) Stock

Why It's Important: Nvidia has positioned itself in the sweet spot of the AI revolution. The company reported stellar second-quarter results in late August, which came in well above the most optimistic forecasts.

With analysts rerating estimates following the quarterly results, the stock now trades at a formed P/E multiple of roughly 44 compared to the semiconductor industry's average P/E 25.9.

The average analyst price target for Nvidia, based on data compiled by TipRanks, is $636.62, suggesting roughly 40% upside potential.

Nvidia stock fell in all but one session this week and notched a weekly decline of 6.05%, as macroeconomic worries drove investors away from growth stocks.

Read Next: Nvidia CEO Jensen Huang Sells $42 Million In Shares: What Investors Should Know