"I don't think AI is a bubble"
Cathie Wood, CEO of ARK Investment Management, a U.S. asset management firm renowned for its technology stock investments and affectionately known as "Money Tree Sister," has warned that if discussions about rising interest rates become more widespread among investors, there could be shocks to the stock market.
On October 28 (local time), during her visit to the Future Investment Initiative (FII) event in Riyadh, Saudi Arabia, CEO Wood said in an interview with CNBC, "We will reach a moment in 2026 when the topic of conversation shifts from interest rate cuts to interest rate hikes," adding, "At that time, there will be a shiver in the market."
She noted, "Many people think that innovation and interest rates move in opposite directions, but historically, that is not true," and warned, "Nevertheless, seeing the logic at work today, I believe there will be a so-called 'reality check' in the future." This suggests that rising interest rates will affect the valuation of technology stocks and that a moment will come when investors' optimistic expectations collide with reality.
Regarding the controversy over the overvaluation of technology stocks in the U.S. stock market, CEO Wood said, "Of course, there will be a correction, as people are concerned," but added, "I do not think artificial intelligence (AI) is a bubble." She further explained, "What I believe is that, from a corporate perspective, it takes time for large companies to prepare for change."
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