3 Cathie Wood Stocks That Could Deliver Bigger Gains Than the Market

Cathie Wood has gone shining star to yesterday's news. Where her Ark Invest exchange-traded funds (ETFs) $ARK Innovation ETF(ARKK.US)$ doubled investors' money in 2020, they have cooled off considerably since. The funds are down 59% over the last 12 months and off 18% over the past three years, but Wood is still a sharp Wall Street guru who has 10-year annual returns of almost 60%, indicating how well she did during the former bull market.

Yet no one is really having a good year this year, as even the S&P 500 is down 17% in 2022. But here are three stocks owned by Cathie Wood's ETFs that could handily outperform the broad market index over the next decade.

Wood has bought and sold Deere $Deere(DE.US)$ numerous times over the past few years, most recently selling 5,800 shares last month. She still owns 164,000 shares worth around $71 million at current prices, so don't read too much into the paring of her stake.

Shares of Shopify $Shopify(SHOP.US)$ have gone in a different direction than Deere, losing nearly 74% of their value so far this year, and are a good reason why Wood's portfolios have been hurting. The e-commerce platform provider is currently the seventh-biggest holding for Wood.

hipmaker Nvidia $NVIDIA(NVDA.US)$ has never had the same sway over Wood's portfolio as Shopify, and the investing guru has at times all but sold out of her position in the company. Today, though, she has over half a million shares.

Nvidia's recent woes have been exacerbated by events in the cryptocurrency world, especially as Ethereum flipped from a proof-of-work validation system to a proof-of-stake system where stakeholders validate transactions. Nvidia's powerful chips were the driving force behind the validation process under the previous system, but are not needed under the current arrangement.

Along with its small but growing automotive business, healthcare framework, robotics, and AI factories, there are numerous levers for Nvidia to pull to make the semiconductor stock a winning bet once again. It foresees a $1 trillion total addressable market opportunity across its many businesses, a valuation it just might be to attain for itself within the next decade.