Ark Invest CEO Cathie Wood said the artificial intelligence-driven technology revolution underway will reshape the global economy more powerfully than the Industrial Revolution.
Technology Revolution Reshaping Global Economy
In her latest investor letter, published Tuesday, Wood said the shift will show up directly in economic growth and inflation data, as advances in AI and other technologies drive productivity higher and push costs down.
She called the current environment “back-to-the-future.”
Wood highlighted five innovation platforms — AI, robotics, energy storage, blockchain technology, and multiomics sequencing — as technologies that could meaningfully impact economic growth and inflation.
“In our view, bottom line, get on the right side of change and ride this innovation super cycle!” she added.
AI’s Falling Costs Could Fuel a Deflationary Boom
The investor said the cost of AI inference fell by more than 99% per year, while demand for AI inference tokens surged 25-fold in 2025.
Wood added that productivity gains could create a "deflationary boom," allowing the economy to grow faster even as technology companies reduce the cost of products and services.
Rising memory chip prices amid a global supply shortage have pushed up costs in the AI buildout, with the crunch expected to persist until 2028 as manufacturers work to expand capacity.
Real GDP growth could accelerate to 7% or more over the next five years, Wood said, driven by technology-enabled productivity gains, compared with roughly 3% since the Industrial Revolution.
For the second quarter, real GDP grew at an annual rate of 1.5%, down from 2.1% in the first quarter.
The Market Backdrop
The S&P 500, which is up 13.21% so far this year and 16.64% over the past year, ended Tuesday essentially flat. Meanwhile, the tech-heavy Nasdaq-100 climbed 0.82% to a fresh high.
The Nasdaq-100 is up 21.92% and 25.03% over 2026 and the past year, respectively.
The Invesco QQQ Trust (NASDAQ:QQQ) has climbed 21.91% year-to-date and has returned 24.95% over the past year.
The iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX) has gained 82.59% so far this year and climbed 112.53% over the past year.
Price Action: QQQ Trust closed 0.81% higher on Tuesday at $747.46 and rose 0.12% in extended trading.
Benzinga edge rankings indicate Invesco QQQ Trust has a Momentum score in the 78th percentile and a positive price trend in the short, medium, and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
See More: Top Momentum Stocks
Photo Courtesy: jira pliankharom on Shutterstock.com
Login to comment