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  • Cathie Wood believes software providers will capitalize on the AI frenzy driven by Nvidia Corp. Wood's ARK Innovation ETF (ARKK) sold Nvidia shares in January, missing out on its remarkable rally to a $1 trillion market valuation. Wood defended the decision, citing concerns over the chip industry's boom-bust cycle and stating the stock is "priced ahead of the curve" in a recent tweet.
  • Wood is optimistic about software stocks such as UiPath, Twilio, and Teladoc Health, which she believes will grow to the scale of Nvidia. She notes that software and SaaS providers can generate eight dollars in revenue for every dollar of hardware sold by Nvidia. Despite significant declines, Wood's funds still hold these stocks, with UiPath down 80%, Twilio down 85%, and Teladoc Health down over 90% from their respective highs in 2021.

Why it matters

Ark Innovation ETF has declined over 10% since February, while the Nasdaq 100 Stock Index has risen 12%. Cathie Wood of Ark Invest expects Tesla's stock price to reach $2,000 by 2027 due to its AI capabilities. She also predicts $10 trillion in revenue from autonomous taxi platforms by 2038 and sees Tesla as more than just an auto stock.


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