Analysts believe Nvidia, which makes high-powered computer chips crucial to building the kinds of generative AI systems that have exploded in popularity in recent months, is one of theto benefit from the AI boom and until January Wood’s Ark Innovation Fund held a sizable position in the company.
Wood said Nvidia is likely to do well over time but defended Ark’s decision to dump its stake—the timing was unfortunate and the fund missed out on the massive Nvidia rally this year—andArk is now “onto the next thing,” Wood said, predicting that companies providing software as a service will “generate 8 dollars in revenue” for every dollar of hardware Nvidia sells.
Wood pointed to virtual healthcare firm Teladoc Health, communication firm Twilio and automation company UiPath as three software companies that she thinks will one day swell to the size of Nvidia. Woods funds hold stocks from all three and all three are currently a long way off their respective highs by around 80% to 90%.Many people consider Elon Musk’s Tesla to be an auto stock, Wood said. “We don’t, we think it’s much more than that.” Tesla is actually the “biggest artificial intelligence play” around. Wood said AI will propel Tesla’s stock price to $2,000 in 2027, up from around $200 now.