Cathie Wood, founder and CEO of Ark Investment Management, has shared her strategic preferences in the semiconductor sector, favoring Nvidia and AMD over traditional memory-chip players. During an appearance on Bloomberg Television, Wood highlighted the "most volatile" nature of the business cycle for memory chips, making them a less attractive investment for her firm.
Wood emphasized that Ark Investment tends to focus on the less cyclical end of the semiconductor spectrum. She noted that the world is "just at the beginning" of the artificial intelligence revolution, implying significant growth potential for companies aligned with this trend.
The remarks come amid a volatile chip market, where cyclical fluctuations can significantly impact traditional memory-chip manufacturers. Wood's comments underscore her firm's strategy to navigate these uncertainties by investing in companies like Nvidia and AMD, which are better positioned to capitalize on long-term trends such as AI.