What AI Bubble? For Cathie Wood, Palantir Is The Secret Weapon

Leading voices in finance—including the International Monetary Fund, Bank of England and business icons such as Sam Altman and Jamie Dimon—have warned that the current wave of AI enthusiasm could be a “bubble.” 

Legendary investor and AI advocate Cathie Wood disagrees. 

On Tuesday, Wood pushed back against fears of an AI bubble while warning that some companies may soon face a reckoning over their lofty valuations.

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She told CNBC the markets could see some turbulence as interest rates climb—a development she predicts within the coming year.

Still, Wood remains confident that the valuations of major tech firms will prove warranted over time. While she acknowledged that market corrections are possible, she insisted we’re just at the start of a major technological revolution, especially in the realm of embodied AI.

Pressed on whether AI is currently in a bubble, Wood said she does not believe so, but argued it will take time for larger firms to adapt and realize AI’s full promise.

She highlighted Palantir Technologies, Inc. (NASDAQ:PLTR) as an important force leading enterprise transformation and future gains in productivity through AI.

Wood said unlocking the full advantages of artificial intelligence will require the kind of restructuring that a company like Palantir is well-positioned to deliver, especially for large organizations aiming to maximize AI-driven value and efficiency.

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