Cathie Wood Goes Bargain Hunting. Here's 1 "Magnificent Seven" Stock She Just Bought on the DeepSeek Dip.
Cathie Wood just scooped up shares in one particular big tech artificial intelligence (AI) stock.
For the last couple of years, the stock market has rallied on an unwaveringly positive narrative surrounding the prospects of artificial intelligence (AI). The momentum that's fueled technology stocks in particular carried into 2025 -- until about two weeks ago, when the party music suddenly stopped out of nowhere.
An AI start-up out of China called DeepSeek released a model that is similar to those built by ChatGPT or Perplexity. The concern, however, is that DeepSeek claims to have unlocked new methods to train AI models by using older, seemingly less sophisticated architectures. As such, investors have become worried that the hundreds of billions that U.S. technology businesses are pouring into expensive chipware may have been an overzealous move. Unsurprisingly, stock prices for big tech, and in particular the "Magnificent Seven," have been cratering in epic fashion.
Nevertheless, one prominent tech investor doesn't seem dissuaded by the DeepSeek drama. Of course, I'm talking about Ark Invest CEO Cathie Wood -- who almost always seems to exhibit a sense of optimism when it comes to new technologies.
