Cathie Wood says AI bull market hasn’t derailed — SkimNews
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- Cathie Wood told CNBC on Friday that she does not think the AI bull market has derailed and expects the equity rally to continue in 2027, calling post-election turbulence “two steps forward, one step back.”
- Nasdaq Composite entered correction territory Thursday after AI-related stocks led a selloff that reversed the initial post-midterm-election rally; fears of a Democrat-led Congress slowing data-center construction were a major driver, and tech stocks recovered tentatively Friday.
- AI investment has driven repeated bouts of volatility in 2025 as hyperscalers moved from extreme positive free cash flow to negative free cash flow amid rapidly accelerating development spending.
- Ark Innovation ETF gained more than 35% in 2025, outperforming the S&P 500’s 16.4% advance and the Nasdaq Composite’s 20.5% rally.
- Corporate bond yields rose as creditors demanded greater compensation from companies; Wood said this financing shift partly caused the correction and identified rising capital costs as a potential “showstopper.”
- SpaceX was one of Ark Invest’s positions that Wood said had gone up over the past week; she argued that controversy around Earth-based data centers was giving data centers in space a bigger opportunity.
- Cathie Wood advised investors to take some profits during volatile rallies and use the proceeds to move back in during sell-offs, while Ark Invest concentrated on its highest-conviction names.
Why it matters: AI companies are most exposed to Wood’s own warning: their high fixed costs have made bond investors newly relevant, and hyperscalers now generate negative free cash flow. Her Ark Innovation ETF gained more than 35% in 2025, but her bull case requires growth strong enough to absorb the higher compensation creditors demand.
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