Cathie Wood Bets Big on AI Cloud, Despite Fund's Slump

0:00Kathy Wood from ARC Invest just dropped $6.9 million on Core Weave Stock last week. That's the NVIDIA-Backed AI Cloud Company powering machine learning for giants like Google and Microsoft. Wood's known for chasing disruptive tech, buying dips or riding winners in her flagship ARC Innovation ETF. Her fund crushed the market back in 2020 with 53% gains, and last year it beat the S&P 500 by a wide margin at 35%. But has been rough lately, down 12% year to date as of early April, compared to the S&P's 3.8% drop, with 5 year, returns lagging at negative 10.6%. Investors aren't fully on board, pulling $1.2 billion from the fund over the past year alone. Wood's high volatility style has wiped out $7 billion in wealth since 2014, ranking it among the biggest ETF losers according to analysts. Still, she's calling for a great acceleration, not a recession, AI, robotics, and biotech driving growth to 7 or 8% with costs, plummeting 75 to 98% yearly.

1:09She sees the real AI boom just starting, fueled by massive spending. Core Weave's up 15% this year on surging demand, and Wood's also grabbing shares in DoorDash, Kodiak AI, Oklo, even open AI ahead of its IPO. Her bet signal confidence in tech's next leg up. From your city, powered by AI, this is Durham News Today. I'm Kori with the story.