While some investors are concerned about an AI bubble, Cathie Wood says it’s not like the tech and telecom bubble in the early 2000s.
Ark Invest continues to add shares of crypto related equities and major tech stocks across its actively managed ETFs, highlighted by its Tuesday addition of more than 174,000 shares of Google parent company Alphabet (GOOG) valued at more than $56 million.
Cathie Wood’s investment management firm also added another $3.75 million worth of shares in crypto exchange Coinbase, $7 million worth of stablecoin issuer Circle, and nearly $2 million worth of its own Bitcoin ETF, the ARK 21Shares Bitcoin ETF (ARKB).
Its major Google acquisition comes just a week after the tech firm unveiled its most powerful AI model yet, Gemini 3. The firm is also engaging in talks with major cloud firms about purchasing its in-house chips, according to a report from the Wall Street Journal.
GOOG shares have been rising in the last 5 trading sessions, gaining more than 8.9% and now changing hands at $319.11. Shares are up more than 22% in the last month, per Yahoo Finance.
The recent boost is just part of a broader rally for the firm, with shares gaining nearly 90% in the last six months to trade at a $3.816 trillion market cap — more than the entire crypto ecosystem at the time of writing.
In addition to Google, the firm added $29.4 million of AI cloud computing firm CoreWeave (CRWV) and $21.5 million of Facebook parent company, Meta.
And while the valuations attached to companies squarely in the AI sector have left some investors wondering whether or not a bubble is preparing to burst, Wood’s firm maintains its bullish stance.
“The fact that so many people are worried that we are in an AI cycle, like the tech and telecom bubble, actually reassures me,” Wood said on an Ark Invest podcast published Tuesday. “It’s very different from what happened during the tech and telecom bubble.”
Wood pointed to the fact that during the tech bubble, companies were being created and funded because of “dreams” of what could be, or how many eyeballs they could eventually secure.
But today, the technologies are ready.
The uncertainty around AI valuations, coupled with macroeconomic uncertainty from missing data during the government shutdown, has led to a wobble in broader markets of late, though Ark Invest has been relentless in its purchases.
Last week, Ark’s funds added notable positions in Coinbase and Ethereum treasury company BitMine Immersion Technologies (BMNR). The firm has also been snatching up shares of Circle as the USDC stablecoin issuer fell back to trading levels not seen since its massively successful IPO in June.
Earlier this month, Wood cut her 2030 Bitcoin forecast to $1.2 million per coin, down from a previously predicted $1.5 million, on account of the rapid rise of stablecoins.
