In this article, we discuss Cathie Wood’s Top 12 AI Stock Picks in 2025.
Since founding ARK Investment Management in 2014, Cathie Wood has earned her place next to legends like Warren Buffet, Ken Fisher, and others. Wood’s investment philosophy centers around identifying and investing in disruptive innovation, which she has put to great use through ARK Innovation ETF.
Historically, Wood has favored tech stocks. She put substantial value into tech companies that promised to disrupt their respective industries through innovation. That hasn’t changed much, and if anything, she seems to be doubling down. Since the beginning of the year, Wood has seemed to smell great opportunities in artificial intelligence (AI). In fact, the latest installment of ARK Invest’s research, ARK’s Big Ideas 2025, puts AI up there in terms of today’s most transformative innovations.
READ ALSO: Paul Singer’s Latest Portfolio: Top 10 Stock Picks and 10 Best Stocks to Buy According to Seth Klarman.
Wood recently commented on the research in a video posted on ARK Invest’s YouTube channel, and her takeaways confirm that she is all in on AI. Right from the start, she believes AI is the story today and in the future. She said:
“AI has been the big story for the past two years, and it’s still the big story. In fact, it is the biggest catalyst to all of the innovation taking place out there uh, it is the reason that the world seems to be speeding up.”
In fact, Wood is convinced that the ongoing AI-driven productivity will put an end to the rolling recession. She said this in her podcast “In the Know,” which outlined a bullish vision of technological innovation driving real GDP growth. While referencing the economic decline that she believes has been ongoing since the Fed began raising rates in 2022, she said, “We’re coming to the end of [the rolling recession]. The bad news is we do have to go through this process.”
Wood and her investment firm have built a reputation for making high-conviction bets on early-stage companies (and industries). Interestingly, one of the key paragraphs in ARK’s Big Ideas 2025 focuses on the risks of investing in innovation. While it points out the risks, it also gives away one of the core beliefs that makes Wood the investor she is: “Risk is how you unlock exponential growth.” That said, let’s see some of Wood’s favorite AI stocks in 2025.
Cathie Wood of ARK Investment Management
Our Methodology
We reviewed ARK Investment Management’s 13F holdings, as of Q4 2024 and selected the fund’s top 12 AI stock picks. We then ranked the top 12 AI stocks in ascending order based on ARK Investment Management’s stake value. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Cathie Wood’s 12 Favorite AI Stocks in 2025
12. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
ARK Investment Management’s Stake Value: $42.92 Million
Number of Hedge Funds Holding Stakes: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a technology company that manufactures chips for other companies rather than designing them. As a leading chip manufacturer, it plays a crucial role in the AI sector by producing advanced semiconductors that power AI hardware and data centers.
With a 64% market share in advanced chip manufacturing, including HPC and AI infrastructure, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) leads the industry and benefits from rising demand driven by AI and data center growth. To meet this demand, it plans to allocate 70% of its 2025 capital expenditures to advanced facilities. With clients like Nvidia, AMD, and Apple, TSMC’s competitive edge allows for price increases, boosting margins and profitability.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) exceeded analyst expectations for its December-quarter results, driven by the AI boom. Revenue grew 38.8% year-over-year to NT$868.46 billion, while net income surged 57.0% to a record NT$374.68 billion.
TSMC Chairman and CEO C.C. Wei highlighted the strong AI-related demand in 2024, stating during an earnings call, “We observed robust AI related demand from our customers throughout 2024,” with AI accelerator products contributing “close to a mid-teens percentage” of total revenue. Wei further noted, “Even after more than tripling in 2024, we forecast our revenue from AI accelerators to double in 2025 as a strong surge in AI-related demand continues as a key enabler of AI applications.”
11. NVIDIA Corporation (NASDAQ:NVDA)
ARK Investment Management’s Stake Value: $49.36 Million
Number of Hedge Funds Holding Stakes: 223
NVIDIA Corporation (NASDAQ:NVDA) is a technology company that designs and supplies graphics processing units (GPUs), application programming interfaces (APIs), and system-on-a-chip units (SoCs). Its products are used in gaming, professional visualization, data centers, and automotive applications. It’s one of Cathie Wood’s favorite stocks as it is well-positioned to benefit from the race to build AI infrastructure.
Cloud computing companies committing billions of dollars to build out data centers and other infrastructure should translate into a booming business for Nvidia’s powerful and advanced chips. Amazon has already committed $100 billion, Microsoft $75 billion, and Meta Plans $65 billion for AI infrastructure. With an 80% market share, NVIDIA Corporation (NASDAQ:NVDA) is the industry leader for AI chips. Although they may be the most costly, the company’s graphics processing units (GPUs) are the most potent. The Blackwell architecture, the computer giant’s most recent release, is in high demand and surpassing supply. Additionally, it has developed a vast array of AI frameworks and microservices that distinguish it.
NVIDIA Corporation (NASDAQ:NVDA) has generated double- or triple-digit revenue growth, which has hit all-time highs over the past year. Revenue jumped 114% to a record $130 billion for fiscal 2025, while revenue increased 78% to $39 billion in the fourth quarter.
10. GitLab Inc. (NASDAQ:GTLB)
ARK Investment Management’s Stake Value: $65.39 Million
Number of Hedge Funds Holding Stakes: 51
Gitlab Inc. (NASDAQ:GTLB) operates an AI-powered DevSecOps platform that enables software development teams to collaborate effectively. The company also provides a suite of tools for continuous integration/continuous delivery (CI/CD) and version control.
Early this month, Gitlab Inc. (NASDAQ:GTLB) reported its fourth-quarter and full fiscal year 2025 financial results, and they were impressive. During the quarter, the firm posted $211.4 million in total revenue, up 29% year over year. The non-GAAP operating margin reached 18%. The picture is the same when you zoom the results to a full-year basis. Total revenue added up to $759.2 million, a 31% increase from the previous year. Interestingly, the management credits AI for much of the revenue growth.
Bill Staples, GitLab CEO, commented on the results, saying: “This quarter’s results demonstrate the power of GitLab’s innovative DevSecOps platform. AI is fundamentally changing the software development landscape. With the GitLab platform and GitLab Duo, customers can leverage AI that fully takes advantage of the GitLab platform, which ensures their software quality, security, privacy, compliance, and governance requirements are met to deliver secure software faster.”
This may explain why Cathie Wood significantly increased her stake in the company during Q4 2024. ARK Investment Management added 346% more shares to its portfolio, and the position is now valued at over $65 million.
9. Pinterest, Inc. (NYSE:PINS)
ARK Investment Management’s Stake Value: $127.21 Million
Number of Hedge Funds Holding Stakes: 72
Pinterest, Inc. (NYSE:PINS) is an Internet Content & Information company that offers a visual discovery platform where people can search, save, and shop for ideas. The company is increasingly leveraging artificial intelligence to enhance user experience and advertising capabilities, generating more ad revenue.
Because of its AI-powered ad capabilities, such as the Performance+ suite, which helps advertisers better target people with automation features, Pinterest, Inc. (NYSE:PINS) is a popular choice for advertisers. It has successfully bolstered its ad load without degrading user experience, a delicate balance essential for sustained success. It is anticipated that increased engagement and additional revenue would result from improvements in ad relevancy brought about by AI-driven programs like Performance+. These improvements are especially crucial because Pinterest markets itself as a site for highly motivated individuals looking for ideas and goods, which makes it a desirable place for direct-response advertising.
Pinterest, Inc. (NYSE:PINS) expects its first-quarter revenue to range between $837 million and $852 million, above analysts’ estimates of $832.8 million. The company expects its image-sharing platform’s artificial intelligence-powered advertising tools to boost ad spend, therefore, drive revenue growth.
8. Advanced Micro Devices Inc (NASDAQ:AMD)
ARK Investment Management’s Stake Value: $145.74 Million
Number of Hedge Funds Holding Stakes: 96
Advanced Micro Devices Inc (NASDAQ:AMD) is a technology company that designs and manufactures semiconductor products, including CPUs, GPUs, and FPGAs, used in various applications like gaming, data centers, and embedded systems. It is the most significant player in the AI chip market, right behind Nvidia, affirming why it is one of Cathie Wood’s favorite stocks in the burgeoning sector.
Advanced Micro Devices Inc (NASDAQ:AMD) is renowned for providing advanced GPUs to enable AI workloads at affordable prices. It is a competitive advantage that offers quality to budget-conscious consumers and is expected to trigger an increase in orders as demand for AI chips rises. In reaction to Nvidia’s hegemony in that market, AMD is already offering the MI300 series of accelerators. Additionally, to compete with Nvidia’s Blackwell line, it introduced the MI325X accelerators.
Advanced Micro Devices Inc (NASDAQ:AMD) is among the best AI players because it boasts a solid and reliable customer pipeline for its AI chips. Microsoft is one of its biggest customers for the flagship MI300X GPUs to drive several GPT 4-based Copilot services. Likewise, it had an impressive 2024 as it progressed in the AI market. Its data center revenue amid the AI boom surged 69% to a record $3.9 billion and was up by 94% for the year to a record $12.6 billion.
7. Tempus AI, Inc. (NASDAQ:TEM)
ARK Investment Management’s Stake Value: $186.34 Million
Number of Hedge Funds Holding Stakes: 17
Tempus AI Inc. (NASDAQ:TEM) is another pure-play AI stock in Cathie Wood’s portfolio. The firm leverages the technology to advance precision medicine and improve patient care. It offers a platform that collects and analyzes clinical and molecular data. The data is then analyzed, and the insights help physicians to optimize treatment decisions for cancer and other diseases.
Recently, Tempus AI Inc. (NASDAQ:TEM) revealed that it had acquired Deep 6 AI. Deep 6 AI is a leading AI-powered precision research platform for healthcare organizations and life sciences companies. This platform is integrated with over 750 provider site locations spanning more than 30 million patients. The platform helps healthcare organizations de-risk clinical trials, accelerate recruitment, and generate real-world evidence.
The company’s latest financial report indicates that revenue for Q4 2024 expanded by 35.8% year-over-year, reaching $200.7 million. Most of the growth came from the data and services segment, whose revenue grew by 44.6% year-over-year. For the full year, annual revenue increased 30.4% to $693.4 million, with the company ending 2024 with $940 million in total remaining contract value and 140% net revenue retention.
Eric Lefkofsky, Founder and CEO of Tempus, emphasized the impact of AI, stating, “We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives. We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive Adjusted EBITDA in 2025.”
6. Amazon.com, Inc. (NASDAQ:AMZN)
ARK Investment Management’s Stake Value: $196.37 Million
Number of Hedge Funds Holding Stakes: 338
Amazon.com, Inc. (NASDAQ:AMZN) is an internet-based business enterprise primarily providing e-commerce, cloud computing, digital streaming and artificial intelligence (AI) services. The company utilizes AI across its operations, from optimizing fulfilment centers and delivery routes to personalizing customer experiences.
It is one of Cathie Wood’s favorite stocks as it integrates artificial intelligence to enhance operations across its three segments: e-commerce, cloud computing, and digital advertising. Amazon.com, Inc. (NASDAQ:AMZN) has already built 1,000 different generative AI applications to improve operations in the three businesses. In e-commerce, it leverages AI to optimize demand and optimize inventory movement. It uses AI tools to create cost-efficient advertising content while designing custom chips to provide cheaper GPUs under its cloud computing unit.
The AI integration was the catalyst behind Amazon.com, Inc. (NASDAQ:AMZN), delivering an 11% increase in revenue in 2024 to $638 billion. Its operating margin expanded by 4% as GAAP net income increased 90% to $5.53 per diluted share, affirming why it is one of Cathie Wood’s favorite stocks. With sales up 19% to $28.8 billion in the fourth quarter of 2024 and operating income up 47% to $10.6 billion, AWS is Amazon’s fastest-growing sector. Amazon’s development of proprietary AI processors, application-specific integrated circuits, or ASICs, contributes to the segment’s strong operating margins.
5. Teradyne Inc. (NASDAQ:TER)
ARK Investment Management’s Stake Value: $242.15 Million
Number of Hedge Funds Holding Stakes: 61
Teradyne Inc. (NASDAQ:TER) designs and manufactures automated test equipment and robotics, specializing in semiconductor testing and industrial automation. Its ATE solutions play a key role in ensuring the quality and performance of complex AI chips through rigorous testing.
On March 10, 2025, Teradyne Inc. (NASDAQ:TER) announced a definitive agreement to acquire Quantifi Photonics, a photonic IC testing company. This deal will enable the corporation to deliver scalable photonic integrated circuit test solutions. According to CEO Greg Smith, the extraordinary growth and complexity driven by Cloud AI requires optical interconnect solutions to support bandwidth and reduce power consumption.
The company is restructuring leadership, with Shannon Poulin replacing Rick Burns as President of the Semiconductor Test Division in Q2 2025. It also partnered with Infineon Technologies in January to enhance power semiconductor testing, acquiring part of Infineon’s automated test equipment team in Germany. Wood increased her stake in the company by 26% during Q4 2024, bringing ARK Investment Management’s position to over $242 million. Other than ARK Investment Management, 61 hedge funds hold stakes in Teradyne Inc. (NASDAQ:TER).
4. UiPath Inc. (NYSE:PATH)
ARK Investment Management’s Stake Value: $249.15 Million
Number of Hedge Funds Holding Stakes: 40
UiPath Inc. (NYSE:PATH) develops automation software for organizations that wish to automate business processes. The company specializes in robotic process automation (RPA) and AI-powered automation solutions. It generates income from products like the UiPath Business Automation Platform, UiPath Studio, and UiPath Robots.
Just a few days ago, UiPath Inc. (NYSE:PATH) acquired Peak, an AI-native company based in Manchester, UK. According to Daniel Dines, the company’s founder and CEO, this transaction will help accelerate their “mission to strengthen our vertical AI solutions strategy.” In other words, Peak will allow UiPath Inc. (NYSE:PATH) to product inventory and pricing for businesses across various industries. It will also enable the firm to enhance its agentic automation platform with specialized decision-making AI capabilities.
Before that, the firm had announced plans to expand its healthcare automation capabilities. This move would be made possible through a global consulting agreement with a major Electronic Medical Records platform. This way, UiPath Inc. (NYSE:PATH) would be able to accelerate professional services programs for customers in 16 new countries beyond the U.S. and Canada, including Australia, France, Germany, and Singapore. It’s easy to see why Wood holds over $249 million worth of the company’s stock—this is after a 7% haircut in Q4 2024.
3. Meta Platforms, Inc. (NASDAQ:META)
ARK Investment Management’s Stake Value: $271.91 Million
Number of Hedge Funds Holding Stakes: 262
Meta Platforms, Inc. (NASDAQ:META) is an internet content & information company focusing on connecting people through social media platforms and developing the metaverse. It owns major social networking sites like Facebook, Instagram, and WhatsApp, as well as technology companies like Oculus VR. It is one of Cathie Woods’s favorite AI stocks as it increasingly leverages technology to enhance user engagement and experience to drive digital advertising.
While the market for digital advertising expanded by 12% last year, Meta Platforms, Inc. (NASDAQ:META) is increasingly using AI to target more of its clients’ advertising budgets. The integration of AI has allowed clients to carry out effective ad campaigns, which, in turn, allows Meta to increase the average price per ad.
The fact that AI provides advertisers with greater returns on their investment is a significant factor in their willingness to spend more money on Meta’s advertising products. In 2024, Meta Platforms, Inc. (NASDAQ:META) saw a far higher growth rate of 22% and brought in $164 billion. As a result of its cost-cutting measures and increased consumer spending, its earnings increased by 60% to $23.86 per share. Meta anticipates a 32% rise in return on investment from AI tools.
2. Palantir Technologies Inc. (NASDAQ:PLTR)
ARK Investment Management’s Stake Value: $589.42 Million
Number of Hedge Funds Holding Stakes: 63
Palantir Technologies Inc. (NASDAQ:PLTR) builds software platforms for big data analytics applications. Palantir’s stock surged 263.96% over the past year, driven by the success of its AI Platform (AIP), which enables rapid AI application deployment. In 2024, sales grew nearly 30% to $2.9 billion, with net income more than doubling to $467.9 million. With $6.3 billion in assets, including $2.1 billion in cash surpassing $1.2 billion in liabilities, the company forecasts 2025 revenue to rise another 30% to at least $3.7 billion.
Palantir Technologies Inc. (NASDAQ:PLTR) has been actively expanding, forming four partnerships in March 2024. It collaborated with R1 to launch R37, an AI lab for healthcare financial performance, and partnered with EYSA to advance mobility applications. Additionally, it announced a joint venture with TWG Global to revolutionize AI deployment in financial services.
Despite Palantir Technologies Inc.’s (NASDAQ:PLTR) robustness, Wood trimmed her stake by 30% in Q4 2024. However, this is not the first time she has made this play. In Q1 2022, the investment guru dumped 98% of the stock, only to come back in full force in Q2 2023. Even then, the company remains Cathie Wood’s favorite AI stock at present, holding over 7 million shares valued at nearly $590 million.
1. Tesla, Inc. (NASDAQ:TSLA)
ARK Investment Management’s Stake Value: $1.33 Billion
Number of Hedge Funds Holding Stakes: 126
Tesla, Inc. (NASDAQ:TSLA) is an auto manufacturer that designs, develops, and sells electric vehicles, energy generation and storage systems. The company is increasingly leveraging artificial intelligence technology to enhance its Autopilot and Full Self Driving capabilities for its self-driving cars. It also employs advanced neural networks to analyze sensor data and make real-time car driving decisions. Likewise, it is Cathie Wood’s biggest holding, offering exposure to the integration of AI in electric autonomous vehicles.
Tesla, Inc. (NASDAQ:TSLA) recorded its first decline in annual deliveries by 1.1% to 1.79 million cars in 2024. Nevertheless, revenue was up 2% year-over-year to $27.5 billion as non-GAAP earnings increased 3% to $0.73 a share. Despite the decline in annual deliveries, Wedbush analyst Dan Ives believes Tesla is well-positioned to benefit from hastened regulatory approval of its AI-powered autonomous driving technology. The analyst believes the company is staring at a $1 trillion opportunity on autonomous driving.
Additionally, Tesla, Inc. (NASDAQ:TSLA) is poised to launch a robotaxi, or automated ride-sharing service, in Austin, affirming its AI developments. It may also begin selling Optimus to other businesses as early as the second half of 2026, as it intends to manufacture 10,000 Optimus humanoid robots for internal usage in 2025.
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
