Cathie Wood says AI in one big field is the 'sleeper' opportunity Wall Street is missing

Cathie Wood, CEO of Ark Invest, has drawn attention to the burgeoning role of artificial intelligence in the healthcare sector, suggesting that Wall Street is missing out on significant investment opportunities. Speaking at the All-In Summit 2025 in September, she emphasized that the true AI revolution is unfolding within hospitals and laboratories, a space that investors are currently neglecting. Wood stated, "The most profound application of AI is in healthcare," during a discussion shared on Tuesday. She noted that the integration of AI with advancements in gene sequencing and CRISPR technology could lead to transformative changes in medicine. According to her, this sector represents a 'sleeper' opportunity—one that is not yet accurately valued in the market. She identified five key technologies—AI, robotics, energy storage, blockchain, and genomics—that are entering a steep growth phase. Wood explained that progress in one area tends to accelerate advancements in the others, creating a convergence that could result in substantial returns for early investors in healthcare. As algorithms improve the speed of gene sequencing, the affordability of sequencing provides AI with a richer dataset to learn from, paving the way for breakthroughs in gene editing and novel treatments. Her perspective comes amidst a trend where many investors are focused on chatbots and autonomous vehicles. Wood is known for her contrarian views and made headlines for her early investments in companies like Tesla and Roku. She also expressed concerns that some of the major tech giants—known as the 'MAG 6' (Microsoft, Nvidia, Meta, Apple, Amazon, and Alphabet)—might experience slower growth over the next five years. These companies have seen their market valuations triple from 2019 to 2024, largely due to a conservative investment approach by the market. She remarked, "That was a very difficult time for innovation for venture capital generally," referring to a period when investors favored established tech stocks. Wood believes that now is the moment for disruptive innovation to take center stage in the market. While Wood did not provide further comments to Business Insider, her firm managed over $13 billion in assets as of May. The healthcare sector is rapidly evolving with AI at its core, as major tech players like Microsoft and Nvidia seek to establish their presence. Microsoft has incorporated AI into its cloud services to enhance hospital operations, with a study indicating that its medical AI system outperforms human doctors in diagnostic accuracy. Nvidia is also making strides, focusing on medical imaging as a key entry point in the healthcare arena, solidifying partnerships powered by its AI technology. Additionally, healthcare startups are leveraging AI to enhance clinician efficiency, allowing them to increase their workloads and revenue without compromising the quality of care.