Tue. Apr 16th, 2024

Ark Invest’s Cathie Wood said this week that investors in her firm’s flagship Ark Innovation ETF (ARKK) stand to profit given the artificial intelligence boom.

“We’re ready for prime time,” she told Bob Pisani on CNBC’s “ETF Edge” on Monday. “The dream [of AI] is no longer; it’s a reality.”

Ark’s Innovation fund, which focuses on disruptive technologies such as AI, has gained 17% this year as of Thursday’s close. The fund’s rise has coincided with the boom in AI-driven mega-cap tech, though has underperformed the Invesco QQQ Trust, which has risen 35% in the same period.

The ETF is still more than 76% off its all-time closing high hit on Feb. 12, 2021.

Wood acknowledged the Innovation ETF’s declines over the past two years, but remained optimistic about the potential for AI-linked stocks in the fund. “Our confidence, if anything, has increased because of what’s happening with artificial intelligence,” she said.

Still, Wood cautioned that investors must be discerning with their AI bets. She called out the “Magnificent Seven” mega-cap tech stocks, with the exception of Tesla, the ETF’s top holding.

“Many people feel comfortable they’re on the right horses,” she said. “We clearly agree with [Tesla]. We are not so sure when it comes to the others. We think AI is going to be highly disruptive.”

Wood added that rapid advances in AI interfaces could usher in a new generation of industry leaders. For that reason, she suggested that the Ark Innovation ETF was a bet on the future of AI.

“We think that the surprise element out there, as our companies take off, harnessing these new platforms, that the element of surprise is going to be significant,” she said. “We will earn our way back into portfolios.”

Don’t miss these CNBC PRO stories:


Checkout latest world news below links :
World News || Latest News || U.S. News

Source link

The post Cathie Wood explains how the artificial intelligence boom could propel Ark’s Innovation ETF appeared first on WorldNewsEra.


Leave a Reply

Your email address will not be published.