Wall Street is ignoring AI’s greatest benefit, according to Cathie Wood.
The CEO of Ark Invest stated during the All-In Summit 2025 in September that investors are hardly seeing the true AI revolution taking place in labs and hospitals. The most profound application of AI is in healthcare, Wood stated in a discussion that was published on Tuesday.
A medical revolution might result from fusing AI with developments in gene sequencing and CRISPR technology, which allows researchers to deliberately alter the DNA of organisms, she continued.
“This is the sleeper. It’s the most inefficiently priced part of the market,” Wood said.
According to Wood, the five main technologies—genomics, blockchain, energy storage, robotics, and artificial intelligence—are all starting their rapid development phases. The others advance more quickly as one advances.
Healthcare might yield enormous profits for investors who are ready to place their bets early because of this convergence, according to Wood. Better algorithms speed up gene sequencing, less expensive sequencing provides AI with more data to work with, and advances in gene editing may lead to novel treatments.
Wood has already defied convention; her money gained notoriety for her early wagers on Tesla and Roku.
The so-called “MAG 6” tech behemoths, which include Apple, Amazon, Alphabet, Microsoft, Nvidia, and Meta, may also experience slower growth over the next five years, according to Wood. Between 2019 and 2024, the market capitalization of these giants quadrupled “because investors were playing it safe, and they were investing only in the largest, most cash-rich stocks.”
In reference to the years when investors stayed with Big Tech, Wood noted, “That was a very difficult time for innovation for venture capital generally.” We now believe that the market is ready for really disruptive innovation to take center stage,” she continued.
According to the recent report, her company managed more than $13 billion in May.
AI is becoming more prevalent in healthcare
Healthcare is rapidly changing due to AI, and the largest tech companies are vying for market share.
In order to automate hospital operations, Microsoft has been incorporating AI into its cloud offerings. Microsoft claimed in a research earlier this year that its medical AI system significantly outperformed human physicians in diagnosing cases.
Nvidia is likewise expanding its presence in the industry. In April, Nvidia’s vice president of healthcare, Kimberly Powell, told that one of the company’s entrance points into the healthcare industry was medical imaging. The business has announced many agreements in medical imaging that are fueled by its AI systems, the most recent of which was with GE Healthcare in March.
Startups in healthcare are also swarming the market. AI may be the innovation that enables physicians to increase their caseloads and generate additional revenue without compromising the quality of care, the founders told in July.
