Cathie Wood’s AI Vision: Health Care and Software Take Center stage in 2025
Cathie Wood, the visionary CEO of Ark Invest, is doubling down on artificial intelligence (AI) as a transformative force, but with a twist. While many investors are focused on flashy applications like robotaxis, Wood believes the most underappreciated opportunity lies in health care. “we’ve got 37 trillion cells in our body, and they’re going to be sequenced as we’re looking for cures,” Wood said during a recent appearance on CNBC’s Squawk Box. “I think the most underappreciated application of AI is health care. I think health care is responsible for an astounding amount of storage out there right now. Data is the name of the game.”
Wood’s conviction in health care’s potential is backed by her high-conviction bet on Recursion Pharmaceuticals, a company that has seen a tenfold increase in the average number of hypotheses per researcher thanks to AI.Recursion recently received FDA approval to begin phase 1 trials of an AI-discovered cancer treatment,a milestone achieved in less than 18 months. This breakthrough underscores the power of AI in accelerating drug finding.
Wood’s flagship Ark Innovation ETF (ARKK) holds nearly 19 million shares of Recursion,valued at roughly $140 million. Other health-care stocks in ARKK include Crispr Therapeutics, Tempus AI, Twist Bioscience, and Beam Therapeutics, all of which are poised to benefit from AI-driven advancements.
While health care is Wood’s long-term focus, she also sees robotaxis as the biggest AI application in the next five to 10 years, with Tesla as the top enabler. however, her investment strategy is shifting away from hardware and infrastructure toward software.
One of her top software picks is Palantir, which recently reported stronger-than-expected fourth-quarter results driven by AI. “Palantir is a very expensive stock, but there’s nothing like it in the software space,” Wood said. “It is indeed, we believe, going to dominate the biggest part of the tech stack when it comes to AI. And that’s the platform as a service part of the stack.”
Palantir’s shares surged 24% to a record high following the earnings report, with CEO Alex Karp describing the momentum in its commercial and government segments as “unlike anything that has come before.”
Key Takeaways: Cathie Wood’s AI Investment Strategy
| Focus Area | Key Players | Highlights |
|———————–|——————————-|——————————————————————————-|
| Health Care | Recursion Pharmaceuticals | FDA approval for AI-discovered cancer treatment; 9% stock gain in 2025 |
| Software | Palantir | record-high stock surge; dominance in AI platform-as-a-service |
| Robotaxis | Tesla | Enabler of next big AI application in the next 5-10 years |
Wood’s insights highlight the transformative potential of AI across industries, with health care and software leading the charge. As she continues to bet on innovation,investors are watching closely to see how these trends unfold in the coming years.
For more on cathie Wood’s investment strategies, check out her recent interview on Squawk Box here.
Cathie Wood’s AI Vision: Health Care and Software Take Center Stage in 2025
In a world where artificial intelligence (AI) is reshaping industries, Cathie Wood, the CEO of Ark Invest, is placing her bets on health care and software as the next frontiers of innovation. During a recent interview on CNBC’s Squawk Box, wood emphasized the transformative potential of AI, particularly in accelerating drug discovery and revolutionizing software platforms. To delve deeper into these insights, we sat down with Dr. Emily Carter, a biotechnology and AI specialist, to unpack Wood’s vision and its implications for investors and industries alike.
The Underappreciated Role of AI in Health Care
Senior Editor: Cathie Wood believes health care is the most underappreciated request of AI. What’s your take on this outlook?
Dr. Emily Carter: I entirely agree with her assessment. Health care is a data-rich field, and AI has the potential to unlock insights that were previously unimaginable.As a notable example, companies like Recursion Pharmaceuticals are leveraging AI to sequence the 37 trillion cells in the human body, speeding up drug discovery and reducing costs. Their recent FDA approval for an AI-discovered cancer treatment is a testament to this transformative power.
AI-Driven Drug Discovery: A Game-Changer
Senior Editor: Recursion Pharmaceuticals has seen remarkable success with AI. How meaningful is this breakthrough in the broader context of drug advancement?
Dr. Emily Carter: It’s monumental. Customary drug discovery can take years, even decades, but AI has compressed that timeline substantially. Recursion’s ability to move from hypothesis to phase 1 trials in less than 18 months is a game-changer. This not only accelerates the process but also reduces costs,making it feasible to explore treatments for rare diseases that were previously deemed unprofitable.
The rise of Robotaxis: Tesla’s Role in AI Innovation
Senior Editor: While health care is a long-term focus,Wood also highlights robotaxis as the next big AI application. How do you see companies like Tesla shaping this space?
Dr.Emily Carter: Robotaxis represent a massive possibility, and Tesla is at the forefront of this revolution. With advancements in autonomous driving AI, the next five to ten years could see a dramatic shift in transportation. Tesla’s ability to integrate AI into its vehicles positions it as a key enabler of this transformation. The challenge now is to scale this technology while ensuring safety and reliability.
Software’s Dominance in the AI Stack
Senior Editor: Wood is also bullish on software, particularly companies like Palantir. Why is software such a critical component of the AI landscape?
Dr. Emily Carter: Software is the backbone of AI. Platforms like Palantir’s provide the infrastructure needed to build, deploy, and scale AI applications across industries. Their recent earnings report, wich showed a 24% surge in stock value, underscores the growing demand for AI-driven software solutions.As Wood pointed out, Palantir is poised to dominate the platform-as-a-service segment, which is crucial for the AI ecosystem.
Investing in the Future: Key takeaways
Senior Editor: What advice would you give to investors looking to capitalize on these trends?
Dr. Emily Carter: Diversification is key. While health care and software are promising sectors, it’s important to stay informed about emerging technologies and companies. Keep an eye on companies like Recursion, Palantir, and Tesla, but also remain open to new opportunities as they arise. The AI landscape is evolving rapidly, and staying ahead requires a proactive approach.
Conclusion
Cathie Wood’s vision for AI underscores its potential to revolutionize industries like health care, transportation, and software.As companies like Recursion Pharmaceuticals, Tesla, and Palantir lead the charge, investors and innovators alike are poised to benefit from these transformative trends. The next few years will undoubtedly bring exciting advancements, and staying informed will be crucial to navigating this dynamic landscape.