We recently published a list of Cathie Wood’s Top 12 AI Stock Picks in 2025. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other Cathie Wood’s top 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.”
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 of ARK Investment Management
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.
Overall, NVDA ranks 11th on our list of Cathie Wood’s top AI stock picks in 2025. While we acknowledge the potential of NVDA 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
