Cathie Wood Goes Bargain Hunting as AI Stocks Decline: 3 Stocks She Just Bought

When investors look for innovative companies, they may turn to Cathie Wood for inspiration. The chief executive officer of Ark Invest is a specialist in this area, aiming to invest in tomorrow’s technology winners today. Wood loves uncovering companies with big dreams and cutting-edge methods of accomplishing those dreams.

And this top investor doesn’t fear a market dip or downturn. In fact, considering her buying patterns, it’s clear that she takes advantage of these moments to pick up stocks at interesting prices. She knows that if the companies reach their goals, earnings and the stock price are very likely to soar in the long run.

So it’s not surprising that Wood, in recent days, was a buyer of artificial intelligence (AI) stocks as they declined. The tech-heavy Nasdaq Composite fell for five straight sessions and finished last week down 4.6%. Once again, Cathie Wood went bargain hunting. Here are the three hot AI stocks she just bought.

1. Space Exploration Technologies

Space Exploration Technologies (SPCX +7.15%) may prompt you to think of space, and space is a major part of its business. The company is a leader in rocket launches, specializing in reusable technology to bring down costs. But SpaceX also has two other units: connectivity and AI. The Elon Musk-led company has major goals — such as developing data centers in space — these goals rely on new technology and involve considerable capital spending.

SpaceX isn’t new to Wood. She was an early investor, before the stock went public, through the Ark Venture Fund. Wood scooped up shares of SpaceX on IPO day for several of Ark Invest’s funds, and she added to these positions on June 26. The company is the biggest holding in Ark Space & Defense Innovation and is among the top holdings in the other funds, including the flagship Ark Innovation.

SpaceX launched its initial public offering on June 12, and the stock rose almost 20% from its offer price of $135 in the first day of trading. Since, though, it’s dropped more than 20% from its peak, offering bargain hunters like Wood an opportunity to buy on the dip.

2. Palantir Technologies

Palantir Technologies (PLTR +2.53%) soared in the earlier part of the AI boom thanks to its AI-driven software platform. This software helps customers — both government and commercial — aggregate their data and use it to develop new strategies, make game-changing decisions, and more.

All of this has resulted in significant earnings growth for Palantir. The company has seen revenue climb in the double digits quarter after quarter. Importantly, Palantir has made significant progress in its commercial business — its grown U.S. commercial customer count to more than 600 from just a handful a few years ago. Customers appreciate Palantir’s Artificial Intelligence Platform (AIP) because it offers them a way to instantly apply AI to their operations.

Wood bought shares of Palantir for three of her funds, including Ark Innovation, on June 25 and June 26. The stock is her 10th biggest position in the Ark Blockchain and Fintech Innovation fund.

3. Cerebras Systems

Cathie Wood has been progressively buying shares of this chip company that aims to rival AI chip giant Nvidia. She bought shares of Cerebras Systems (CBRS +19.00%) for three of her funds, including Ark Innovation, from June 23 through June 26.

In Ark Innovation, Cerebras is the 25^th-largest holding out of 47 stocks. Ark Innovation also holds Nvidia, in the 21st spot, and fellow chip designer Advanced Micro Devices — this player may be her biggest AI chip bet as it’s in the No. 4 spot in the portfolio.

Cerebras launched its IPO in May, and the stock surged 68% in its first trading session. Since, however, it’s fallen considerably from that peak. Cerebras makes chips that are much bigger than those of rivals — and it says that by bringing huge amounts of compute and memory onto one chip, it’s able to offer incredible speed.

The company’s first-quarter revenue soared 92% to a record of more than $190 million — that’s still a far cry from the multi-billion-dollar revenue levels of Nvidia. But bargain-hunting Wood clearly sees the potential of this newly launched stock to carve out a valuable share in the high-growth AI chip market over time.