Cathie Wood Adds Three Stocks to Her Portfolio: What These Strategic Bets Reveal

The investment landscape shifted again this week as Ark Invest’s co-founder Cathie Wood made strategic moves across her actively managed exchange-traded funds. On a single trading day last week, Wood expanded her stakes in three companies that each tell a different story about where she sees opportunity in today’s market: Taiwan Semiconductor Manufacturing, Oklo, and Pony AI. These weren’t modest adjustments—they were among eight positions she increased that day, signaling conviction in her thesis. Let’s examine what drew her attention to these stocks and what they reveal about her investment philosophy.

Taiwan Semiconductor: A Chip Giant Still Commanding Premium Valuations

Taiwan Semiconductor Manufacturing operates as the world’s largest chip foundry, and its reach extends far beyond Wall Street awareness. If you’re using an iPhone, laptop, tablet, or streaming device, there’s a strong likelihood TSMC technology powers it. The company approaches a $1.8 trillion market cap, positioning it as the sixth-most valuable company on U.S. exchanges.

The stock has delivered impressive returns recently, gaining 65% over the past year. This performance has allowed TSMC to eclipse most of the “Magnificent Seven” tech giants in terms of returns, though it hasn’t formally joined their exclusive club. The rally intensified after the company reported fourth-quarter revenue growth of 21% in its home currency, translating to an even healthier 26% increase when converted to U.S. dollars, reaching $33.7 billion. Analysts had anticipated growth in the mid-to-high teens range, making TSMC’s performance exceed expectations.

What truly distinguishes TSMC, however, is its profit conversion rate. The company has maintained a net profit margin exceeding 30% for 22 consecutive years—a remarkable track record in a notoriously cyclical industry. More striking still: TSMC achieved a company-record 45.1% net margin in 2025, meaning approximately 45 cents of every revenue dollar flows to the bottom line. For investors like Wood, this demonstrates a business model with pricing power and operational excellence. While growth is moderating from the 30%+ year-over-year jumps that characterized the previous six quarters, revenue still climbed 30% or more in three of the past four years—a pace most would envy.

Oklo: Betting on the Next Wave of Nuclear Innovation

Oklo presents a starkly different investment case. The stock has nearly quadrupled in value over the past year, yet the company has not generated any revenue. Analysts don’t forecast profitability for at least four more years. On conventional metrics, this should be a warning sign. For Wood, it appears to be a green light.

Oklo operates at the intersection of two powerful trends: next-generation nuclear energy and artificial intelligence infrastructure. The company specializes in fast-fission reactor technology and nuclear fuel recycling, positioning itself to supply the efficient, zero-carbon power that intensive AI applications increasingly demand. As AI workloads expand, so does their power consumption—a structural problem that traditional grids struggle to solve.

A crucial element of Oklo’s credibility came from its former chairman, Sam Altman, the CEO of ChatGPT creator OpenAI. His involvement validated the company’s thesis that AI companies would need innovative power solutions and attracted substantial investor capital. Though Altman stepped down as chairman about nine months ago—a move seen as addressing conflict-of-interest concerns—it cleared the path for more AI companies to partner with Oklo without hesitation. With Jacob DeWitte now leading as chairman, the company can pursue relationships more freely while maintaining operational focus on commercialization targeted for next year.

Pony AI: Capturing the Autonomous Vehicle Opportunity in China

Pony AI represents a third distinct investment angle: the self-driving vehicle market. The company has established itself as a leader in China, a market increasingly open to autonomous vehicle commercialization—a sharp contrast to the more cautious regulatory environment in other regions.

Going public at $13 just over a year ago, Pony AI has demonstrated classic growth-stock volatility. Shares have ranged from a low of $4.11 to a high of $24.92, ultimately settling around $16.20—roughly 25% above its IPO price. The company currently generates trailing revenue of just $96.4 million, but the growth trajectory appears striking: analysts project revenue could nearly triple to $261 million next year, and potentially reach $1.5 billion by 2029.

At a $7 billion market capitalization, Pony AI’s valuation doesn’t appear irrational if it can execute on these growth expectations. The autonomous driving market in China is nascent but rapidly evolving, and an early leader with proof points could capture disproportionate value as the industry matures. For Wood, this appears to be a classic early-stage growth opportunity in an emerging category.

The Cohesive Strategy Behind These Three Picks

What connects these three acquisitions is neither sector nor valuation profile—it’s future-oriented exposure. TSMC offers proven economics serving the AI silicon demand boom. Oklo captures the infrastructure-enabling layer of the AI revolution through energy innovation. Pony AI accesses the autonomous systems application layer in a less-saturated market. Together, they represent Wood’s bet that AI’s downstream effects extend across multiple layers of the economy and will reward companies solving different pieces of the puzzle.

Wood’s continued conviction in aggressively pursuing growth-oriented positions suggests she views current valuations, despite recent rallies, as justified by the magnitude of coming transformation. Whether these stocks ultimately validate that thesis will unfold over the next few years.