Cathie Wood stages AI as the next best thing in her latest interview.
Cathie Wood’s Ark fund was developed to capture disruptive innovation, aiming for long-term growth.
So it will come as no surprise that Wall Street technology queen’s vision of AI through a pink champagne glass is euphoric.
Nvidia stock price broke the stratosphere as AI investor mania propelled its market cap into the trillion-dollar club last month, May.
Cathie Wood eagerly pointed out that her fund bought Nvidia stock since its inception.


“Cathie Wood’s Ark fund was developed to capture disruptive innovation, aiming for long-term growth”
WEALTH TRAINING COMPANY
Cathie Wood stages AI as offering opportunities beyond hardware
The high-profile technology investor noted that Nvidia is a hardware stock.
“But the history of hardware and software is that the bigger beneficiary over time is software,” said Cathie Wood.
“In our view, for every dollar of hardware Nvidia sells, software providers will generate eight dollars in revenue,” she said.
Cathie Wood stages AI with software stocks offering potential alpha
“We are looking for software providers, which is where Nvidia was when we bought it,” she said.
Nvidia was in the five to ten billion dollar range and today, the semiconductor company is a trillion-dollar company.
“We have software opportunities, and we have companies because of AI opportunities developing new businesses that are going to thrive right now. These companies are in the ten to billion-dollar range,” she said.
Investors who own the benchmark like NDX and QTEC, also own Nvidia.
“But we are on to the next best thing,” she said.

“We are looking for software providers, which is where Nvidia was when we bought it”
CATHIE WOOD
There are currently 70 ETFs which have AI and robotics in them.
“We believe the hardware side of AI is in the 30 to 40 billion dollar price range. So multiplied by 8, we see the software side going eight times that.
Over now, and 2030 we think AI will add more value than any of our technology platforms it is going to catalyze, we talk about Tesla all the time,” said Cathie Wood.
“Autonomous platforms globally will deliver by 2030 eight to ten trillion dollars in revenue by 2030, from almost zero today,” she added.
That is almost half the size of the US economy.
“We see a global autonomous taxi opportunity and think it will submit to natural geographic monopolies,” she said.
Cathie Wood sees Tesla as an AI play.
She thinks the company could be a thousand-dollar stock, and thinks Tesla has an opportunity in China. But China, the largest EV market, is developing its own homegrown EV brands.
Moreover, great power politics could ban the export of cutting-edge AI technology, which could limit the company’s growth.
“We believe that there are 32 trillion dollars paid globally to knowledge workers, and that is where we could see a lot of productivity gains”
– Cathie Wood
Cathie Wood stages AI as fertile grounds for investors
“We are in a moment now where you are seeing many companies slap AI into their names. The most successful ones have visionary management, AI expertise, and large pools of high-quality data that nobody has. So, proprietary data, Tesla has billions of miles of real-world driving data, so it is an evolving system for people to get from point A to B, most quickly and safely,” she said.
We can look into whether it is our Genomic Names, Exact Sciences and Teladoc, they all have data that nobody else has,” she said.
Twilio has data on the interaction between businesses and consumers that nobody else has.
She also noted that Zoom is scheduled to announce new products in early June, showcasing some of their AI products based on data.
Cathie Wood stages AI as a boon for productivity
She noted that AI companies are consulting companies on how to be more productive over time.
“We believe that there are 32 trillion dollars paid globally to knowledge workers, and that is where we could see a lot of productivity gains.
We may see some displacement of workers, but we believe that technology is a net job creator, and these people will go on to better jobs.
Cathie Wood stages AI as deflationary
We also think AI is deflationary in a good sense. AI training costs are dropping 70% in a year, which is massive deflation causing a boom in activity associated with AI. We believe that companies will adopt Chat GPT at that moment.
People are looking at the promise of innovation. I think this is going to be a win-win,” she said
“the superpower that dominates AI wins and sits on the hegemon throne for the next century” – Wealth Training Company
But here is the devil’s advocate view of Cathie Wood stages of AI euphoria
Technological innovation, by its very nature, increases worker productivity by making talented workers super productive and average workers redundant. AI might never realise its full commercial potential because legislators will ban it. California bill bans self-driving trucks is just the beginning.
Moreover, great power geopolitics is in play as we enter an unstable multipolar world. The great superpowers want to rule the world.
Tears for fears, everybody wants to rule the world, lyrics come to mind and the superpower that dominates AI wins and sits on the hegemon throne for the next century.
Our fifty cents is that AI will be controlled, owned and monopolised by the superpowers who will guard their technology ruthlessly with a dagger.
We see cutting-edge AI technology being restricted, similar to nuclear technology.
Export license restrictions could prevent the inventors of AI technology from fully realising commercial potential with national interests trumping.
So if you think Cathie Wood stages AI vision is too Peter Pan like there is always the SARK fund, which is a 100% bet against the ARK fund’s AI investor mania.