Cathie Wood Warns of ’Reality Check’ for AI Stocks Amid Rising Rate Concerns
Cathie Wood, CEO of ARK Invest, predicts a near-term reckoning for high-flying AI stocks as market focus shifts from rate cuts to potential hikes. Speaking at Saudi Arabia's Future Investment Initiative, Wood emphasized that while AI isn't in a bubble, tightening financial conditions could spark a correction. Her warning comes as tech valuations reach record highs fueled by AI euphoria.
Global policymakers echo these concerns, with the IMF and Federal Reserve cautioning that unchecked AI investment may destabilize broader markets. Notably, Wood's firm continues actively managing its innovation-focused portfolios despite the cautious outlook—a testament to the sector's long-term potential amidst short-term volatility.