Cathie Wood predicts software companies will be a big investment opportunity in AI

From Nasdaq: 2025-01-26 04:45:00

Cathie Wood, founder of Ark Investment Management, predicts software companies will be a big investment opportunity in AI, potentially generating $8 in revenue for every dollar spent on chips from suppliers like Nvidia. Ark’s ETFs, ARKK and ARKQ, offer exposure to AI software stocks with returns of 34% and 57% in the last 12 months.

The Ark Innovation ETF focuses on disruptive innovation like cloud computing, digital assets, and AI subsegments. Top holdings include Tesla, Roku, and Coinbase, with Tesla seen as a major AI project due to its autonomous driving software. Wood believes Tesla’s revenue could grow tenfold by 2029.

The Ark Autonomous Technology and Robotics ETF invests in AI, robotics, and automation. Top holdings include Tesla, Kratos Defense, and Teradyne, with a focus on autonomous systems and automation in various industries. The ETF has a compound annual return of 14.8% since 2014 and is recovering faster than the Innovation ETF.

Wood’s ETFs are actively managed and have higher expense ratios, but they offer exposure to AI software stocks like Palantir Technologies, Amazon, and UiPath. While volatile, these ETFs have the potential for strong long-term performance due to their focus on innovative technologies and AI.



Read more at Nasdaq: Cathie Wood Says Software Is the Next Big AI Opportunity — 2 Ark ETFs You’ll Want to Buy if She’s Right