Cathie Wood, the visionary founder of ARK Investment Management, is doubling down on artificial intelligence (AI) in 2025, with Palantir Technologies Inc. (NASDAQ: PLTR) emerging as one of her top picks. Despite trimming her stake in Q4 2024, Wood remains highly committed to Palantir, holding over 7 million shares valued at nearly $590 million, making it a cornerstone of her AI portfolio.
AI: The Biggest Innovation Story of Our Time
In a recent ARK Invest research report, Big Ideas 2025, Wood described AI as the most transformative force in today’s market. During a recent YouTube video and on her podcast “In the Know,” she emphasized that AI is the primary catalyst behind the current wave of innovation.
“AI has been the big story for the past two years, and it’s still the big story. In fact, it is the biggest catalyst to all of the innovation taking place out there. It is the reason that the world seems to be speeding up,” Wood said.
Palantir: ARK’s High-Conviction AI Bet
Palantir, known for its big data analytics platforms, has seen its stock surge nearly 264% over the past year, thanks to the success of its AI Platform (AIP). The company’s revenue grew by 30% in 2024, hitting $2.9 billion, while net income more than doubled to $467.9 million.
Looking ahead, Palantir forecasts another 30% revenue increase in 2025, with sales projected to reach at least $3.7 billion. The company’s strong balance sheet boasts $6.3 billion in assets, including $2.1 billion in cash, easily covering its $1.2 billion in liabilities.
Strategic Partnerships Drive Growth
In March 2024, Palantir aggressively expanded its partnership network, announcing:
- R37 AI Lab: A collaboration with R1 to enhance healthcare financial performance using AI.
- EYSA Partnership: Focused on mobility applications.
- TWG Global Joint Venture: Aimed at revolutionizing AI deployment in financial services.
Cathie Wood’s Tactical Moves
While Wood reduced her Palantir stake by 30% in late 2024, this move aligns with her historical pattern of trimming and re-entering high-conviction positions. She famously dumped 98% of her Palantir shares in Q1 2022, only to rebuild her stake in Q2 2023.
Investor Takeaway: AI-Powered Conviction
As Cathie Wood continues to pile into AI stocks, Palantir Technologies remains a top holding in ARK’s portfolio, signaling her long-term conviction in the company’s potential. With AI innovation accelerating and Palantir’s robust financials, the stock could continue to be a cornerstone of ARK’s growth strategy in the years ahead.
