ARK Invest founder Cathie Wood says the next leg of the AI revolution won’t come from chatbots or chips.
In a new interview on the Global Money Talk YouTube channel, Wood says the multiomics revolution is the most “undervalued, underappreciated and misunderstood” AI application today.
Multiomics combines data from genomics, proteomics, metabolomics and other biological layers to reveal how diseases develop and respond to treatment — a field now accelerating through AI-driven pattern recognition.
She says the investment play is starting to gather steam following one fundamental change.
“Having, I think that pure play portfolio, the genomic revolution portfolio, I think it is up to 6% compound annual rate of return, but it was very low double digits for the last few years. And now it is starting to catch a bid.
And I think part of the reason for that is deregulation in two ways. First of all, we have a new head of the FTC (Federal Trade Commission) who is much more open to M&A (mergers and acquisitions). And we now have strategic price discovery once again in this market. And you’re seeing a lot of pharma and biotech companies buying into this space. Why? Because they have collectively a $300 billion revenue hole to fill during the next five years because of patent expirations.”
Wood says the second-highest conviction AI play is autonomous mobility, led by Tesla’s expanding RoboTaxi network.
“Tesla finally launched its RoboTaxi in Austin in June, and it is moving very quickly now into many cities and is expanding its footprint in those cities well beyond where Waymo is. So, we think most analysts have not adequately, shall I say, incorporated the robo-taxi opportunity. It’s really the autonomous taxi network opportunity for Tesla into their models.”
She adds that the convergence of energy storage, AI and automation will transform Tesla’s business model from one-off car sales into recurring, software-like revenue streams.
“That convergence is going to drive a model, which until now has been one and done. You buy a car or you make a sale of a car and you hope they come back in four or five years. Very low gross margin, 16%. That will evolve into a subscription SaaS (software-as-a-service)-like model in the robo-taxi world.
So recurring revenue at much higher margins, SaaS margins are in the 80s. And then beyond that, the same three platforms are converging to create the humanoid robot opportunity. And we think Tesla’s in the pole position there as well.”
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