Cathie Wood, head of Ark Investment Management, is known for buying her favorite tech stocks during market pullbacks.
That’s exactly what she just did, adding shares of an AI stock after a sharp selloff.
In 2025, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period.
So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 2.94% year to date, while the S&P 500 surged 9.33% as of July 8, Yahoo Finance data shows.
Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.
Those swings have weighed on Wood’s long-term gains. As of July 7, her Ark Innovation ETF has delivered a five-year annualized return of -8.56%, while the S&P 500 has an annualized return of 11.48% over the same period, according to data from Morningstar.
Cathie Wood flags ‘the deflationary impact’ of tech innovation
Wood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses have strong growth potential, though their volatility often causes fluctuations in the Ark’s funds.
From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to a March 2025 analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst hasn’t updated her ranking.
Wood believes investors have been focusing on the wrong signals as they assess the outlook for inflation, interest rates, and stocks.
In a June 5 post on X, Wood said the bond market is increasingly reflecting the deflationary impact of technological innovation, particularly artificial intelligence, rather than the inflation risks many investors still fear.
Wood pointed to the continued flattening of the Treasury yield curve despite a sharp rise in oil prices over the past year. In previous cycles, she noted, an energy shock of that magnitude would have pushed long-term yields higher.
Related: Cathie Wood buys $5.5M of surging tech stock
Wood believes the bond market is “discounting something much more powerful: the deflationary impact of technological innovation, particularly artificial intelligence, which is beginning to increase productivity across broad swaths of the economy. ”
She also said easing tensions with Iran and a decline in oil prices could push inflation even lower.
“The next phase of this cycle could be characterized by accelerating growth, declining inflation, falling interest rates, and a strengthening U.S. dollar,” Wood said. “That combination would create a remarkably supportive backdrop for innovation-led equities and the technologies driving the next productivity boom.”
Not all investors share Wood’s optimism. Over the past 12 months through July 7, the Ark Innovation ETF saw roughly $1.21 billion in net outflows, according to data from ETF research firm VettaFi.
Cathie Wood buys $2.1M of CoreWeave stock
On July 7, Wood’s Ark Innovation ETF bought 23,743 shares of CoreWeave Inc. (CRWV), according to Ark’s daily trade information. These shares are valued at approximately $2.1 million based on July 8’s closing price of $90.
CoreWeave is an Nvidia-backed cloud infrastructure company that focuses on GPU-powered computing for AI workloads. Its data centers run on Nvidia chips, and major customers include Google (GOOGL) and Microsoft (MSFT).
Wood’s purchase came after CoreWeave stock experienced a brief selloff last week following Meta Platforms’ announcement that it plans to sell excess computing capacity. The move could increase competition for CoreWeave and underscores a key risk facing the stock.
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But shares of CoreWeave have already been under pressure for a while, especially after its weaker-than-expected Q2 revenue guidance.
Since CoreWeave’s last earnings day in May, the stock has dropped more than 30%. Moreover, the share price has been cut nearly in half since its June 2025 high.
On May 7, CoreWeave reported an adjusted loss of $1.12 per share, wider than analysts’ expectations for a 90-cent loss. Revenue came in at $2.08 billion, topping estimates of $1.97 billion and more than doubling from $981.8 million a year earlier.
For the second quarter, CoreWeave projected revenue of $2.45 billion to $2.6 billion. The midpoint of that range fell below Wall Street estimates of $2.69 billion, according to CNBC. The company maintained its full-year 2026 revenue outlook of $12 billion to $13 billion.
CoreWeave’s CEO, Mike Intrator, said on the May earnings call that the company has now reached “hyperscale.”
“We have reached hyperscale with more than 3.5 gigawatts of contracted power, up more than 400 megawatts this quarter alone, with the substantial majority expected to be online by the end of 2027,” he said.
CoreWeave is expected to report its upcoming quarterly earnings in August.
Wood isn’t the only one who’s bullish on CoreWeave stock. Some analysts also see the recent pullback as an opportunity to buy.
Rosenblatt reiterated its buy rating on CoreWeave with a $250 price target, arguing that the stock’s selloff following reports that Meta Platforms is planning an AI cloud business was “a buying opportunity,” The Fly reported.
Rosenblatt analysts said there’s no change in demand from hyperscale customers for GPU computing power, adding that GPU shortages remain the norm across the industry. Also, the firm said it does not believe Meta has the right to resell the CoreWeave capacity it has leased through 2032 to third parties.
CoreWeave is not in the top 10 holdings of Wood’s Ark Innovation ETF.
Top 10 holdings of the Ark Innovation ETF as of July 8, 2026:
- Tesla Inc. (TSLA) – 10.12%
- Tempus AI Inc. (TEM) – 5.75%
- CRISPR Therapeutics AG (CRSP) – 5.39%
- Robinhood Markets Inc. (HOOD) – 5.02%
- Shopify Inc. (SHOP) – 4.43%
- Advanced Micro Devices Inc. (AMD) – 4.21%
- Space Exploration Technologies Corp. (SPCX) – 4.00%
- Coinbase Global Inc. (COIN) – 3.96%
- Beam Therapeutics Inc. (BEAM) – 3.63%
- Roblox Corp. (RBLX) – 3.42%
Other than buying CoreWeave shares, Wood’s latest trades included adding shares of Space Exploration Technologies (SPCX), Kratos Defense & Security Solutions (KTOS), Recursion Pharmaceuticals (RXRX), Eli Lilly (LLY), Compass Pathways (CMPS), Prime Medicine (PRME), Generate Biomedicines (GENB), and Alamar Biosciences (ALMR).
She also trimmed holdings in Alibaba (BABA), Roku (ROKU), Twist Bioscience (TWST), Natera (NTRA), Advanced Micro Devices (AMD), Illumina (ILMN), Strata Critical Medical (SRTA), Absci (ABSI), Personalis (PSNL), Veracyte (VCYT), Guardant Health (GH), CareDx (CDNA), Adaptive Biotechnologies (ADPT), and BioNTech (BNTX).
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