The Zhitong Finance app learned that Casey Wood (known as “Sister Wood”), the “Wall Street Female Stock Master” and head of Ark Investments, has always been famous for investing in disruptive innovations. Now, this investor is betting heavily on artificial intelligence — widely regarded as one of today's most disruptive and transformative technologies.

The stock price of NVDA.US (NVDA.US), the most representative stock of artificial intelligence, has soared about 187% so far this year, and its market capitalization has also exceeded 1 trillion US dollars.

Unfortunately, Ark Innovation ETF, the flagship fund owned by Ark Investment, cleared Nvidia in January of this year, thus missing out on later gains. In a recent interview, Sister Mu also thought that Nvidia “will perform very well over time.” However, she also saw other stocks that would “benefit from the foundation Nvidia lays.”

Sister Mutou specifically mentioned the field of software.

She said, “In our opinion, for every $1 of hardware sold by Nvidia, software vendors and SaaS vendors generate $8 in revenue. So we're looking for software providers whose stock prices are actually at the same level as when we first bought Nvidia.”

Sister Mutou then listed three software companies that she believes will thrive due to artificial intelligence and another company that she calls “the biggest player in the field of artificial intelligence.”

UiPath

UiPath (PATH.US) is a robotic process automation software company that provides automated solutions for businesses. Its AI-driven UiPath business automation platform understands, automates, and operates end-to-end processes.

In the first quarter of 2023, the company's revenue increased 18% year over year to $289.6 million. Notably, its net retention rate in US dollars is 122%.

So far this year, the stock has soared 36%, but throughout its history, the stock hasn't always been favored by investors: in 2022, UiPath's stock price plummeted 70%.

Currently, Ark Innovation ETF has 28,363,938 UiPath shares with a position value of US$4867.3 million, making it the fifth largest holding company of the fund.

Twilio

Twilio (TWLO.US)'s cloud communications platform allows enterprises to develop and integrate various communication channels into applications. Its application programming interface enables developers to seamlessly integrate voice, messaging, and video, helping companies increase customer engagement.

Twilio had over 300,000 active customers in the first quarter of this year. Meanwhile, revenue increased 15% year over year to $1.01 billion.

In a recent earnings call, Twilio co-founder and CEO Jeff Lawson said he believes artificial intelligence “will be an important catalyst for Twilio's business over time.”

Currently, the Ark Innovation ETF holds 4,771,968 Twilio shares with a market capitalization of US$3045 million.

Teladoc Health

Ark Innovation ETF also owns Teladoc Health (TDOC.US), a telemedicine company worth 30043 million US dollars.

The company's platform connects patients to healthcare professionals through video, phone calls, and text messages. During the peak of the COVID-19 pandemic, when face-to-face non-emergency medical services were suspended, demand for telemedicine services surged.

This allowed Teladoc's revenue to soar 98% in 2020 and attracted the attention of a large number of investors.

Although the pandemic is largely over, the company continues to expand its business. Teladoc's first-quarter revenue increased 11% year over year.

However, the stock failed to maintain its upward momentum. Teladoc's current stock price is $25.25, down more than 90% from the record high set in February 2021.

Tesla, the biggest player in the field of artificial intelligence

Although Sister Mutou is optimistic about the development of artificial intelligence in the three companies mentioned above, in fact, her biggest bet in this field is Tesla (TSLA.US), a company not famous for artificial intelligence stocks. Currently, Tesla is the most heavily held stock in the Ark Innovation ETF, with a shareholding ratio of 11.59%.

“We've been talking about Tesla, which is actually the biggest player in artificial intelligence,” she said, adding that the reason is related to the electric car company's autonomous driving technology.

Sister Mutou predicts that by 2030, autonomous taxi platforms will generate 8 trillion to 10 trillion US dollars in revenue worldwide, “but now it's almost zero.”

Due to Tesla's capabilities in this area, the booming autonomous taxi market may raise its stock price to a whole new level.

“We think if our research is correct, the stock will reach $2,000 in five years, that is, in 2027,” she said.

Considering Tesla's current stock price is around $257, Sister Mutou's target price means that its potential increase is over 670%.