Cathie Wood on Palantir: Expensive but Unmatched

  • Cathie Wood sees the AI revolution in its infancy, comparing it to the internet’s early days, with significant growth expected, particularly in software like Palantir (PLTR).
  • She remains bullish on Tesla (TSLA), anticipating the launch of robotaxis this year and highlighting the untapped potential of humanoid robots, despite past forecasting challenges.
  • Wood identifies healthcare as the most underappreciated sector for AI impact, predicting advancements in disease curing through companies like Illumina (ILMN) and Recursion Pharmaceuticals (RXRX).

Cathie Wood, CEO and CIO of ARK Invest, appeared on CNBC’s ‘Squawk Box’ to delve into her 2025 strategy, emphasizing the transformative potential of AI across various industries, particularly in healthcare and autonomous driving with Tesla (TSLA). Wood argued that we are at the cusp of an AI revolution comparable to the early stages of the internet in the mid-90s, with significant developments yet to unfold. She highlighted AI’s shift from hardware to software, naming Palantir (PLTR) as a standout due to its unique position in the software ecosystem, expected to dominate in AI platform services.

Wood discussed Tesla’s advancement into robotaxis and humanoid robots, asserting that despite past delays, the robotaxi service could launch this year. She acknowledged the challenges in forecasting, citing the unexpected impact of events like COVID-19, which skewed earlier projections on Tesla’s car sales. However, she maintained that their forecasts were closer to reality than many other analysts, especially in the context of electric vehicle growth.

In healthcare, Wood identified AI’s application as profoundly underappreciated, predicting it could lead to significant advancements in disease curing. She emphasized the importance of data, noting that with 37 trillion cells in the human body, AI-driven sequencing technology could revolutionize medical research. Companies like Illumina (ILMN) and PacBio (PACB) were mentioned as leaders in sequencing, with Recursion Pharmaceuticals (RXRX) showcasing how AI can dramatically increase research efficiency, potentially reducing drug development timelines and failures.

When asked about market dynamics and the tendency for markets to rally around clear, thematic leaders — such as Tesla in electric vehicles (EVs) or Nvidia (NVDA) in AI infrastructure — Wood pointed to healthcare as another area of opportunity. She suggested that early-stage research companies like Recursion could serve as bellwethers, but the real game-changer would be if AI shifts from managing diseases to curing them. In such a scenario, the value of patents could skyrocket. This perspective challenges traditional valuation models, implying that the curative potential of medical innovations could lead to a dramatic revaluation of their worth.

Wood’s insights clearly underscore a belief in a future where AI not only disrupts but also redefines industries, offering unprecedented growth opportunities for investors and society alike.

WallStreetPit does not provide investment advice. All rights reserved.

About Ari Haruni 468 Articles
Ari Haruni

Be the first to comment

Leave a Reply

Your email address will not be published.


*

This site uses Akismet to reduce spam. Learn how your comment data is processed.