The Overlooked Goldmine: How AI is Transforming Health Care Investing
As the artificial intelligence (AI) revolution continues to gain momentum, one area that’s swiftly emerging as a potential goldmine for investors is health care. Cathie Wood, the CEO of Ark Invest, believes this sector is particularly ripe for innovation. On a recent segment of CNBC’s "Squawk Box," she discussed how health care, riddled with vast amounts of data, stands to benefit immensely from AI advancements.
Unlocking Health Care’s Potential
Wood highlighted the astounding reality that our bodies contain around 37 trillion cells, each of which could be sequenced in the pursuit of medical breakthroughs. She expressed her conviction that the most significant applications of AI in the future will come from health care. As she put it, "Data is the name of the game."
In the short term, she anticipates that innovations such as robotaxis will capture attention, led by her top investment claim—Tesla. However, her sights are set on the longer-term transformative effects of AI in health care, largely propelled by her stake in Recursion Pharmaceuticals.
A Closer Look at Recursion Pharmaceuticals
Recursion Pharmaceuticals has been on Wood’s radar for good reason. With a substantial investment of almost 19 million shares valued at around $140 million in her flagship Ark Innovation ETF (ARKK), Wood is betting big on this biotech’s potential.
Notably, Recursion recently gained FDA approval to initiate phase 1 trials for an AI-discovered cancer treatment. In less than 18 months, the company used its AI-enabled drug discovery platform to identify a target area in biology and match it with a promising drug candidate, showcasing the power of AI in accelerating pharmaceutical breakthroughs. After facing a significant downturn last year, Recursion’s shares have surged by over 9% in 2025.
Other Promising Health Care Investments
Beyond Recursion, Ark Invest’s portfolio also includes promising health care stocks like Crispr Therapeutics, Tempus AI, Twist Bioscience, and Beam Therapeutics. Each of these companies is harnessing AI in unique ways to innovate health care processes and treatments, reflecting a broader trend where health tech and AI converge.
The Shift Towards Software
While Wood sees vast potential in health care, she is also redefining her investment strategy in the broader AI landscape. Moving away from hardware and infrastructure, she is placing a strong focus on software—where one of her standout picks is Palantir.
Palantir recently announced results that exceeded expectations, triggering a jump of 24% in its stock price—a sign that investors are taking notice. As Wood emphasized, “Palantir is a very expensive stock, but there’s nothing like it in the software space.” The CEO of Palantir, Alex Karp, echoed this sentiment, describing their current momentum in both commercial and government sectors as unprecedented.
Why This Matters to You
For individuals interested in AI and investing, understanding these trends could be crucial for future portfolio strategies. The intersection of AI and health care not only highlights innovative applications but also encourages us to consider what other sectors might be transformed in the years ahead.
Investing in these AI-driven innovations could lead to significant returns. Plus, with companies like Recursion and Palantir at the forefront, we have great examples of how quickly the landscape can evolve.
Conclusion
As we stand on the brink of these advancements, it’s thrilling to imagine the possibilities. The investments in health care and AI are not just shaping the markets but could also lead to breakthroughs that change lives. The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.
