Cathie Wood, chief of Ark Investment Management, doesn’t give up on her favorite stocks easily.
That’s what she just did, buying one of her top holdings that’s down 15% year-to-date.
Wood gained a reputation after the flagship Ark Innovation ETF (ARKK) delivered a 153% return in 2020. Last year, the fund gained 35.5%, far outpacing the S&P 500’s return of 17.9% in the same period.
But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.
As of March 13, the Ark Innovation ETF was down nearly 10% year to date, while the S&P 500 dropped 3%, Yahoo Finance data shows.
Those swings have weighed on Wood’s long-term gains. The Ark Innovation ETF has delivered a five-year annualized return of -11% as of writing, while the S&P 500 has an annualized return of 12.6% over the same period, according to data from Morningstar.
Cathie Wood repeatedly rejects “AI bubble”
Wood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses have great growth potential, though their volatility often brings fluctuations to the Ark’s funds.
From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst hasn’t updated the 2025 ranking.
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In a letter published in January, Wood says the U.S. economy is storing up energy for a sharp rebound in 2026.
“Despite sustained real gross domestic product growth during the past three years, the underlying US economy has suffered a rolling recession and has evolved into a coiled spring that could bounce back powerfully during the next few years,” Wood wrote.
Wood also rejects the “AI bubble” talk again, saying it “is years away” and “the most powerful capital spending cycle in history” is coming.
“What once was the cap in spending seems to have become a floor now that the AI, robotics, energy storage, blockchain technology, and multiomics sequencing platforms are ready for prime time,” she said.
Not all investors agree with Wood’s optimism. In the 12 months through March 12, the Ark Innovation ETF saw roughly $1.45 billion in net outflows, according to ETF research firm VettaFi.
Cathie Wood buys $2 million of Tempus AI stock
On March 11 and 12, Wood’s Ark Genomic Revolution ETF (ARKG) bought a total of 41,906 shares of Tempus AI Inc. (TEM), valued at about $2.1 million, according to Ark’s daily trade information.
As of March 13, Tempus AI is the second-largest holding in ARKG and the fourth-largest in ARKK, accounting for roughly 9.5% and 5%, respectively.
Top 10 holdings of the Ark Innovation ETF as of March 13, 2026:
- Tesla (TSLA) 10.57%
- CRISPR Therapeutics (CRSP) 6.07%
- Circle Internet Group (CRCL) 5.03%
- Tempus AI (TEM) 5.02%
- Shopify (SHOP) 4.88%
- Coinbase Global (COIN) 4.67%
- Robinhood Markets (HOOD) 4.49%
- Roku (ROKU) 4.06%
- Advanced Micro Devices (AMD) 3.82%
- Palantir Technologies (PLTR) 3.59%
Tempus AI is a healthcare technology company that provides AI-driven diagnostic tools that help doctors make treatment decisions. It also sells the data generated from its tests to pharmaceutical companies for drug development.
The company went public in June 2024, and Wood had actively bought its stock since the IPO.
Tempus AI stock peaked near $104 in October and now trades around $50 per share, down more than 50% from its all time high.
The company reported its latest earnings on Feb. 24, but the market reaction was negative. Tempus AI shares fell about 7% the day after the earnings report.
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For the fourth quarter, Tempus AI reported a loss of 4 cents per share, narrower than the 5-cent loss expected by analysts. Revenue reached $367.2 million, beating the $363.4 million consensus estimate and rising 83% year over year.
However, a large portion of the revenue growth came from acquisitions, which boosted the company’s topline results.
“The strength of our unit growth in diagnostics along with the accelerating growth of our data business is proof that we are unique in this space,” Tempus AI’s CEO Eric Lefkofsky said, adding that the company’s investments in AI “continue to compound” and is exected to “drive significant growth over the next several years.”
JPMorgan analyst Casey Woodring lowered the price target on Tempus AI to $60 from $80 after the company’s Q4 results, while maintaining a neutral rating on the stock, The Fly reported.
Woodring said the company’s “clouded visibility” on data upside and changing expectations for Ambry, an acquired genetic testing unit, make it harder to see upside. The analyst suggests investors may want to stay on the sidelines for now.
Wood says health care is the “most underappreciated application of AI.”
“We’ve got 37 trillion cells in our body, and they’re going to be sequenced as we’re looking for cures,” Wood told CNBC last year.
“I think the most underappreciated application of AI is health care. I think health care is responsible for an incredible amount of storage out there right now. Data is the name of the game,” Wood said.
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