Tech investor Cathie Wood says Elon Musk's Tesla could be a big AI winner – and its stock isn't overpriced

Cathie Wood
Ark Invest CEO Cathie Wood.ARK Invest
  • Ark Invest CEO Cathie Wood said Tesla could be a big winner from artificial intelligence.

  • The investor also defended her support for Elon Musk's carmaker, saying its stock isn't overpriced.

  • "We think it's one of the biggest AI opportunities out there," Wood said of Tesla Wednesday.

Tech investor Cathie Wood touted Elon Musk's Tesla as a big winner in the artificial intelligence race, and said the stock was not overpriced.

The ARK Invest CEO has long been an avid supporter of the carmaker, making bold predictions about potential upside from a robotaxi boom.

"Tesla, many people think, is an auto stock. We don't. We think it's much more than that, but we think it's one of the biggest AI opportunities out there," Wood told Bloomberg TV on Wednesday.

Tesla closed Tuesday at $201.16, valuing the company at $630 billion. The stock has had an impressive rally this year, rising 86% on the back of a broad tech rally based on expectations the Federal Reserve will start cutting interest rates as inflation cools.

When asked if the EV-company's valuation was too high, Wood shook her head. "Right now, and we're in price on this, Tesla's at roughly $200. We believe that in five years, 2027, it will be a $2,000 stock if our research is correct," she said.

Tesla is among Wood's most favoured stocks, with her flagship fund Ark Innovation ETF holding an 11.21% weighting.

Building on the AI hype, Wood said software providers will be the next group of stocks set to benefit from industry excitement powered by Nvidia. "The bigger beneficiary over time is going to be software," Wood said.

"We are looking to the software providers who are actually, right now, where Nvidia was when we first bought it," she added, naming stocks including UiPath and Twilio.

Read the original article on Business Insider