{"id":15954,"date":"2023-05-30T22:24:40","date_gmt":"2023-05-31T02:24:40","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/ark-innovation-etf-rises-sharply-cathie-wood-views-its-top-holding-tesla-as-most-obvious-beneficiary-of-recent-ai-breakthroughs\/"},"modified":"2023-05-30T22:24:41","modified_gmt":"2023-05-31T02:24:41","slug":"ark-innovation-etf-rises-sharply-cathie-wood-views-its-top-holding-tesla-as-most-obvious-beneficiary-of-recent-ai-breakthroughs","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=15954","title":{"rendered":"ARK Innovation ETF rises sharply, Cathie Wood views its top holding Tesla as \u2018most obvious beneficiary\u2019 of recent AI breakthroughs"},"content":{"rendered":"
\n

Cathie Wood\u2019s ARK Innovation ETF rose sharply Tuesday, as shares of its largest holding Tesla Inc. jumped and technology stocks rallied amid ongoing investor enthusiasm over artificial intelligence.<\/p>\n

The ARK Innovation ETF
\n ARKK,
\n +1.82%<\/bg-quote>,<\/span>
\n an exchange-traded fund that targets disruptive innovation as an investment theme, closed 1.8% higher Tuesday, outpacing the tech-heavy Nasdaq Composite index\u2019s
\n COMP,
\n +0.32%<\/bg-quote>
\n 0.3% rise, according to FactSet data. <\/p>\n

\n

But the ETF no longer holds chip maker Nvidia Corp., even as ARK Investment Management founder Wood expects the company will power the era of artificial intelligence. While her firm has believed since 2014 that \u201cNvidia saw the AI future before most other chip companies\u201d and expects it will continue \u201cto power the AI age,\u201d the company now looks expensive, Wood suggested over Twitter<\/a> on Monday.<\/p>\n

\u201cAt 25X expected revenue for this year,\u201d Nvidia\u2019s stock is \u201cpriced ahead of the curve,\u201d she said in a thread of tweets. Tesla, which trades at 6x revenues, is \u201cthe most obvious beneficiary of the recent breakthroughs\u201d in AI, she tweeted.<\/p>\n

Shares of Nvidia
\n NVDA,
\n +2.99%<\/bg-quote>
\n have skyrocketed this year, with their 3% gain on Tuesday bringing the stock\u2019s surge so far this year to more than 174%, according to FactSet data. Electric car maker Tesla
\n TSLA,
\n +4.14%<\/bg-quote>
\n finished 4.1% higher on Tuesday, increasing its year\u2013to-date climb to more than 63%.<\/p>\n

\u201cCompanies with visionary leaders, strong global distribution and, perhaps most important, large high-quality pools of proprietary data should be big #AI winners, with revenues and earnings surprising significantly on the high side of expectations during the years ahead,\u201d Wood said in her thread of tweets.<\/p>\n

Read:<\/strong> AI buzz pushes tech stocks higher \u2013 but here\u2019s why the ripple effect in stocks may still be \u2018narrow\u2019<\/p>\n

\u201cInvestors seem to think NVDA is the only AI play. It is not!\u201d Wood wrote over Twitter<\/a> on Monday, referencing Nvidia\u2019s ticker and surging stock price.<\/p>\n

Meanwhile, the Roundhill Generative AI & Technology ETF
\n CHAT,
\n +2.76%<\/bg-quote>,<\/span>
\n which launched earlier this month, rose 2.8% on Tuesday. The fund, whose top holdings include Nvidia, ended the trading session with larger gains than the ARK Innovation ETF.<\/p>\n

So far this year, Wood\u2019s flagship ARK Innovation ETF has surged more than 27% through Tuesday, according to FactSet data. That compares with a more than 24% rise for the Nasdaq this year.<\/p>\n

Beyond Tesla, other top holdings of the ARK Innovation ETF on Tuesday included Zoom Video Communications Inc.
\n ZM,
\n -0.89%<\/bg-quote>,<\/span>
\n Roku Inc.
\n ROKU,
\n +3.00%<\/bg-quote>,<\/span>
\n Coinbase Global Inc.
\n COIN,
\n +7.47%<\/bg-quote>
\n and enterprise automation software business UiPath Inc.
\n PATH,
\n +6.08%<\/bg-quote>,<\/span>
\n according to data on ARK\u2019s website.<\/p>\n

Tesla should benefit from AI as it aims for an $8 trillion-to-$10 trillion-revenue total addressable market for \u201cautonomous mobility\u201d by 2030, Wood wrote in a tweet<\/a> Monday. \u201cBut, based on our research for the last five to six years, @ARKInvest sees dozens of AI winners!\u201d<\/p>\n<\/p><\/div>\n<\/div>\n