This is Cathie Wood:
• She saved Tesla from bankruptcy
• An early investor in Coinbase and Bitcoin
• Dubbed the "female version of Buffett"
She just stated: "AI will give rise to a new trillion-dollar class of billionaires."
Here is her advice for the present: 🧵
Cathie Wood manages ARK Invest, which oversees a total of $9.1 billion in assets across 8 exchange-traded funds.
She is known for her bold and unwavering bets on disruptive innovation.
What about her investment track record?
It's astonishing.
But what is her most famous achievement?
She has made some of the most accurate market predictions in history:
• An early investor in Tesla and Bitcoin
• Anticipated the rise of genomics and AI technology
• Founded ARK Invest in 2014, focusing on disruptive innovation
And now, she has made her boldest prediction yet:
"AI will give birth to a new trillionaire class."
Not billionaires, but trillionaires.
She believes we are in the midst of an unprecedented economic transformation.
And she is betting billions of dollars on the following areas:
1. Tesla: $2,600 target price (but the reason is unexpected)
Despite recent volatility, Wood remains firmly invested in Tesla stock.
Her 5-year target price is $2,600 per share.
But the focus is no longer on electric vehicles.
Wood believes that 90% of Tesla's future value will come from autonomous taxi services.
She predicts that the global autonomous taxi market will reach $8 to $10 trillion.
"We believe that by the end of this year, with the help of AI, Tesla's autonomous taxis will be at least safer than human drivers."
2. AI Chips: The Battle for Infrastructure
Wood is increasing her positions in Nvidia and AMD. Why?
For every dollar software companies spend on AI chips, they could generate 8 dollars in revenue.
She believes these companies are the foundation of AI development:
NVIDIA's dominance in the AI chip sector makes it the core of her AI investment logic.
AMD is seen as a significant challenger in the data center and AI workload space.
Wood recently reduced her holdings in the soaring Palantir,
but her focus remains on companies providing hardware for AI applications.
3. Medical AI: The Most Underestimated Application Scenario
"Healthcare is the most underestimated field for AI applications."
Wood is continuously focusing on two directions:
• Tempus AI (medical diagnostics)
• Recursion Therapeutics (new drug development)
She believes that the cost of developing a new drug will decrease from $2.4 billion to $600 million.
4. Software: The Place for Accelerated Growth
Wood believes that AI software will experience explosive growth.
She focuses on Meta Platforms.
Reasons include Meta's user base and its leading position in AI models (such as Llama).
Once the software is built, it can expand efficiently.
5. Bitcoin: Long-term Vision
ARK's long-term target price for Bitcoin is as high as $1.5 million per coin.
This prediction is based on the changing role of government and Bitcoin's potential as a digital store of value.
However, what makes Wood's strategy unique is:
"Artificial intelligence is currently the strongest engine of transformation."
She predicts that GDP growth may double within 5 years.
The driving force is not consumption or credit, but a leap in productivity brought about by technology.
This brings the possibility of growth coexisting with controlling inflation:
"We buy innovative companies when the market is down and hold them until they grow."
ARK recently purchased over $25 million in Roku stock.
Her investment creed is:
"Turbulent times will ultimately become the grand stage for innovation."
Wood believes that new companies with a trillion-dollar market value are emerging right now.
Not ten years from now, but now.
Founders who can win these markets need not only great technology,
but also disruptive and innovative thinking.
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