Cathie Wood Warns Wall Street Is Missing AI's Biggest Opportunity In Healthcare, Calling It 'Sleeper' Investment Poised For Massive Returns

Author: Snigdha Gairola | October 15, 2025 05:17am

Ark Invest CEO Cathie Wood told investors the real AI revolution isn't in chatbots or self-driving cars, it's happening in hospitals and labs and Wall Street is largely overlooking it.

Healthcare AI Seen As ‘Most Profound Application’

Speaking at the All-In Summit 2025 in September, Wood highlighted healthcare as "the most profound application of AI," reported Business Insider. 

She said combining artificial intelligence with advances in gene sequencing and CRISPR technology could spark a transformation in medicine.

"This is the sleeper. It’s the most inefficiently priced part of the market," Wood said.

Convergence Of AI, Genomics And Robotics Could Unlock Massive Gains

Wood outlined how five major technologies, AI, robotics, energy storage, blockchain and genomics, are entering steep growth phases. 

When these technologies converge, progress in one accelerates the others. 

"Smarter algorithms make gene sequencing faster; cheaper sequencing gives AI more data to learn from; and breakthroughs in gene editing can open the door to new treatments," she explained.

Wood also suggested that some big tech companies, including Microsoft Corp. (NASDAQ:MSFT), Nvidia Corp. (NASDAQ:NVDA), Meta Platforms Inc. (NASDAQ:META), Apple Inc. (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL), could see slower growth in the next five.

She added that this was because investors have traditionally favored these "safe" stocks.

See Also: Cathie Wood’s Ark Pivots: Sells Tempus AI After FDA Win, Loads Up On Amazon, Figma And This Trendy Crypto Stock

Healthcare AI Has Emerged As The Most Profound Application

Earlier this year, Wood highlighted the transformative potential of AI in healthcare, calling it the most profound application compared with autonomous vehicles and humanoid robots.

According to Ark's Multiomics Flywheel, AI accelerated all aspects of multiomics from generating biological data to diagnosing diseases and developing new drugs.

Multiomics combines genomics, transcriptomics, proteomics, and metabolomics to understand complex biological systems.

Ark analyst Nemo M. Despot noted that companies like Twist Bioscience Corp. (NASDAQ:TWST), Tempus AI Inc. (NASDAQ:TEM), 10X Genomics Inc. (NASDAQ:TXG) and Illumina Inc. (NASDAQ:ILMN)  were creating faster, more cost-effective DNA sequencing tools.

He added that AI-powered diagnostics were improving early disease detection and patient profiling.

Wood also highlighted Mass General Brigham’s research showing AI could predict cancer survival and estimate biological age from facial images, reinforcing healthcare as a major, underexplored AI opportunity.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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