ARK Funds is an investment firm that manages exchange-traded funds focused on disruptive technology. The fund family is run by closely watched portfolio manager Cathie Wood. It’s best known for the ARK Innovation ETF (ARKK) , which has actively managed a concentrated portfolio of 30-35 growth-oriented technology companies since 2014.
While popular, the Ark Innovation ETF can certainly be volatile at times.
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For example, it was up 36% in 2019 and 153% in 2020 but generated losses of 23% in 2021 and 67% in 2022. Then, it gained 68% in 2023 and 8% in 2024.
Its 3-year beta, a measure of volatility relative to the broader market, is 1.8.
Related: Cathie Wood buys $37 million of surging tech stock
Over the past several years, Ark Funds has expanded and today offers 5 different actively managed growth-oriented ETFs.
Each year ARK publishes a report it calls “Big Ideas.” Its recently released 2025 presentation is packed with thoughts, comments, and assumptions about the future of technological innovation.
The 5 most innovative technology platforms, according to Cathie Wood
ARK’s research states, “The global economy is undergoing the largest technological transformation in history.”
The “Big Ideas 2025” report lists five innovation platforms that are leading the world through a period of transformation:
- Blockchain technology,
- Artificial intelligence,
- DNA sequencing,
- Energy storage, and
- Robotics.
Three of the five are particularly intriguing. Here’s why Cathie Wood is so focused on artificial intelligence, DNA, and robotics.
No. 1: Artificial intelligence changes everything
Cathie Wood’s team believes computer systems will likely evolve to solve problems once thought unsolvable. This will help automate jobs and increase technology adoption in every sector of the economy.
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ARK believes AI adoption will ultimately be more important than electrification, generating tens of billions of dollars in increased value and productivity.
In a recent report, IDC said it expects $19.9 trillion to be spent on AI between now and 2030 and that 98% of global business leaders believe AI should be a priority. As systems come online, huge amounts of computational power will be needed, driving demand for power, grid resources, and next-generation data centers.
The adoption of AI will likely transform and impact almost every industry. According to a survey by accounting firm KPMG, “88 percent of US companies reported at least some level of improvements in both performance and profits from their technology-driven transformation initiatives. That’s almost double the number (45 percent) from the previous year’s results.”
Stocks that fall into this category include:
Tesla and SpaceX
Tesla (TSLA) focuses on batteries, electric vehicles, and autonomous driving software.
SpaceX is the only private company capable of returning a spacecraft from low-earth orbit. In 2012, SpaceX was the first private company to carry a commercial delivery to the international space station, and in 2020, it was the first private company to take humans to the space station as well.
ARK ETF believes that SpaceX is 10 years ahead of its competitors in developing and deploying reusable rockets. Tesla also owns a fast-charging network.
According to the company, 2025 is expected to be a major year in Tesla’s history due to continued progress in self-driving – FSD (Supervised) capabilities. Tesla aims to unlock unsupervised FSD for drivers and the Robotaxi business, forecasting a launch later this year in parts of America.
Tesla’s stock price closed at nearly $338 on Friday, and analysts have a target price for the shares at $343.58. Earnings estimates for 2025 call for an 18% year-over-year increase, according to YCharts.
Palantir Technologies Inc.
Palantir is a software company that helps governments and businesses use and secure data via its Foundry and Gotham platforms.
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According to the research firm Morningstar, “Palantir’s core differentiator is referred to as the ontology framework, which uses data to establish undiscovered relationships and advanced decision-making.”
After Palantir (PLTR) recently reported strong fourth-quarter 2024 results, Goldman Sachs said there are “Several drivers of fundamentals in 2025 in addition to US Commercial, including Operation Warp Speed (an operating system for manufacturing companies), and the push for more efficiency and technology adoption in the US government.”
The company’s stock price closed last Friday near $101, above analysts target price for the shares of $92, according to TipRanks. EPS for 2025 is currently forecast growing 35% year over year, according to YCharts.
No. 2: Unlocking the power of multiomics (DNA research)
According to Cathie Wood, the cost of obtaining, sequencing, and understanding digital biological data is falling sharply.
Multiomic technologies give researchers unprecedented access to DNA, RNA, protein, and digital health data.
For instance, the ability to detect and treat cancer may transform thanks to the development of cancer blood tests. Coupling multiomic data and AI could help dramatically help reduce drug discovery costs and the length of drug trials, allowing new therapies for rare diseases and chronic conditions to launch. The technology may also help advance agriculture, material sciences and computation.
Two stocks that fall into this category include:
Natera Inc.
Natera (NTRA) is a diagnostic and research company with proprietary molecular and bio-informatics technology.
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Key products include the Panorama Non-Invasive Prenatal Test (NIPT), which screens for chromosomal abnormalities in a fetus and twin pregnancies, usually from a blood sample. Its Horizon Carrier Screening (HCS) determines carrier status for many severe genetic diseases. And its Signatera molecular residual disease (MRD) test detects circulating tumor DNA in previously diagnosed cancer patients. Prospera is used to assess the risk of organ transplant rejection.
Natera’s stock price closed last Friday near $162, and analysts’ target price for the shares is $179.67, according to YCharts. The company isn’t yet turning a profit, though.
CRISPR Therapeutics
CRISPR Therapeutics AG (CRSP) is a gene editing company developing therapies based on Crispr/Cas9.
Crispr/Cas9 stands for clustered regularly interspaced short palindromic repeats (Crispr)/Crispr-associated protein 9 (Cas9). The technology helps researchers more precisely alter specific genomic DNA sequences.
The company’s first approved drug is Casgevy, which was developed in collaboration with Vertex Pharmaceuticals and targets sickle-cell disease and transfusion-dependent beta-thalassemia, which have high unmet medical needs. Its pipeline includes a variety of gene editing programs in immuno-oncology and cardiovascular, plus a stem cell-derived therapy to treat Type 1 diabetes.
CRISPER’s stock price closed last Friday at about $48, and analysts have a target price for the shares of $82, according to YCharts. Like Natera, it isn’t yet profitable.
No. 3: Robotics may reshape how we work and live
Advances in artificial intelligence mean that humanoid Robots may soon operate alongside humans.
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A recent research report from Benchmark International highlighted that new technologies are helping fuel the robotics market. They say “These areas include artificial intelligence (AI) and machine learning (ML), which enable robots to learn from their environment, adapt to new tasks, and improve their performance over time.”
Advances in robotics could change the way products are made and sold and, eventually, the way we live our lives at home.
ARK ETFs believes that Robotics represents a $26 trillion opportunity divided 50% between the home and 50% in manufacturing facilities. ARK also believes that 3D printing will help digitize manufacturing, increasing the performance and precision of parts and making supply chains more efficient. The world’s fastest robots, reusable rockets, may lower satellite launch costs, improving global connectivity.
Two stocks that fall into this category include:
Teradyne Inc
Teradyne (TER) is a testing equipment company. Its products include automated test equipment for semiconductors, hard drives, circuit boards, and devices.
Its industrial automation business was launched in 2015. It sells collaborative and autonomous robots for factory applications. According to CFRA, Teradyne’s robotics segment represents 13% of revenues and includes robotic arms and autonomous mobile robots for manufacturers and warehouses.
Teradyne’s stock price closed last Friday at $116, and analysts have a target price for the shares of $139.14, according to TipRanks. EPS is forecast to increase 23% year over year this year, according to YCharts.
Kratos Defense & Security
Kratos (KTOS) operates two segments: Kratos Government Solutions and Unmanned Systems.
Government Solutions products include microwave electronic products, space, training, cybersecurity, C5ISR/modular systems, turbine technologies, and defense and rocket support services operating segments. The Unmanned Systems segment markets unmanned aerial, ground, and seaborne solutions and related command, control, and communications system solutions.
Kratos’ stock price closed last Friday around $25, and analysts have a target price of $35.88, according to TipRanks. The EPS estimate for 2025 is currently forecast to grow 11% year over year, according to YCharts.
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