Cathy Wood, the star investor on Wall Street, stated recently that Ark Invest, the investment management company she manages, is still in a favorable position in terms of allocation of assets in the field of AI, although she reduced her holding positions on Nvidia's stocks last year.

Cathy Wood, also known as 'Woodstock Wizard', rose to fame in 2020 and 2021 and was even hailed as the 'female version of Warren Buffett'. At that time, due to the low interest rates and the rising risk appetite of retail investors in the United States, Wood's funds concentrated on highly speculative technology companies and obtained huge returns.

However, afterwards, Wood made several bad moves, among which the most well-known one was reducing her shareholding in Nvidia. She had claimed several times that the valuation of Nvidia was too high. Yesterday, Nvidia's stock price surged by more than 5% again, and its total market value exceeded $3 trillion, surpassing Apple and ranking second in the world.

In the latest interview, Wood said that her fund 'has a lot of exposure to up-and-coming stars', has more professional investment portfolios, and still holds Nvidia. According to the data tracked by cathiesark.com, Nvidia accounts for less than 0.5% of Ark Invest's funds' holdings, while Tesla accounts for as much as 8.55%.

Wood explained that she bought Nvidia as early as 2014, when the trading price was about $4 per share. Since then, the flagship fund ARK Innovation ETF (ARKK) has been holding the stock until its share price reached around $400. However, before the big surge last year, she sold most of her positions.

"We told ourselves that if Nvidia continued to rise like that, it would benefit many other companies, so we began to research those other potential companies." "We did pull back, which was a bit of a statement of our attitude."

Wood believes that the competition in the semiconductor industry is not over yet, but as companies re-evaluate their AI strategies, the investment field may experience a temporary pause. She added that Ark Invest expected to see a tailwind in the first quarter earnings season, but companies like Salesforce failed to do so. Salesforce's stock price plummeted nearly 20% when it released its financial report.

Wood also pointed out that autonomous driving will be 'the world's largest AI project', which is why she continues to bet on Tesla. Before this, she had stated that General Motors and Ford may retract their electric vehicle plans due to profitability issues, while Tesla is ready to seize more market share.

In an analysis last year, Ark Invest estimated that Tesla would reach $2,000 per share in 2027, optimistically touching up to $2,500, with a pessimistic projection of $1,400. Compared to the current price of around $175 per share, this represented a significant increase.

In late May, Ark Venture Fund disclosed its holdings of xAI, a new company founded by Elon Musk, accounting for about 2% of its holdings, and about 4% of OpenAI. It also holds shares in Anthropic, accounting for about 5%.

Due to Tesla's cumulative decline of nearly 30% from the beginning of this year, ARKK, worth 6.4 billion U.S. dollars, also fell by nearly 16%. Wood said that the fund outperformed the benchmark with a 68% increase last year because the market initially expected the Federal Reserve to cut interest rates six times in 2024, but at some point this year, expectations suddenly turned to no interest rate cuts this year, which depressed technology stocks.

Wood believes that the Fed's interest rate cuts this year will exceed market expectations, because the economic recession in the United States is spreading. "Housing, cars, construction, and consumers are now driving interest rates down in this election year."