Artificial intelligence is widely regarded as one of the most disruptive and transformative technologies of our time. Cathie Wood, who is known for betting on &#34;disruptive innovation,&#34; is heavily investing in AI software stocks.
Previously, Cathie Wood faced controversy for selling off Nvidia and missing out on a $560 billion rebound. She later defended herself by saying that software would be the next beneficiary of the AI frenzy.
She has stated that for every $1 of hardware sold by Nvidia, software suppliers and SaaS suppliers generate $8 in revenue, making software the biggest opportunity in AI. Additionally, she reiterated that Tesla is the &#34;most important AI concept stock&#34; and that autonomous driving technology is expected to drive its stock price from its current $240 to $2,000 in 2027, meaning that Tesla still has 750% upside potential.
Currently, Cathie Wood's Ark Innovation Fund holds three software stocks: UiPath, Twilio, and Teladoc Health, as well as &#34;the biggest player in the AI field,&#34; Tesla.
Specifically, UiPath is the fourth largest holding of the Ark Innovation ETF, with 28 million shares of UiPath stock, with a position value of $517.28 million.
UiPath is a robotic process automation software company that provides automation solutions for enterprises. In the first quarter of 2023, the company's revenue increased by 18% YoY to $289.6 million. So far this year, the company's stock has surged by 43%.
Secondly, the Ark Innovation ETF holds 4.6 million shares of Twilio, with a position value of $517.28 million.
Twilio's cloud communication platform allows enterprises to develop and integrate various communication channels into their applications. Its application programming interface enables developers to seamlessly incorporate voice, messaging, and video, helping enterprises improve customer engagement. In the first quarter, Twilio's active customer accounts exceeded 300,000, while revenue increased by 15% YoY to $1.01 billion.
The Ark Innovation ETF also holds a $301.7 million stake in remote medical company Teladoc Health, whose platform connects patients with medical professionals via video, phone, and text.
During the pandemic, the demand for remote medical services surged, and the company is still expanding its business. Teladoc's revenue increased by 11% YoY in the first quarter. However, Teladoc's stock price has not maintained its upward momentum, falling more than 90% from its February 2021 high.
And the biggest bet of the Ark Innovation ETF's AI is Tesla, which is currently the largest holding of the ETF with a weight of 11.81%.
Cathie Wood believes that Tesla is actually the biggest player in the field of artificial intelligence, and its autonomous driving platform will bring in $8 trillion to $10 trillion in revenue by 2030, almost zero now. In five years, by 2027, Tesla's stock price will reach $2,000. Given that Tesla's current stock price is $250, this means there is still about 750% room for growth.

TSLA

Wood Sister, the biggest opportunity for AI lies in software, and the "most important AI concept stock" is Tesla. The autonomous driving technology is expected to drive its stock price to $2,000 by 2027.

Wood Sister holds heavy positions in these four AI stocks, expecting Tesla to rise by 750%.