Cathie Wood: Nvidia, AMD in, memory chips out for AI bet

Cathie Wood, founder of Ark Investment Management, has very clear ideas about where not to put her money. Speaking on Bloomberg Television, she explained her decision to avoid traditional memory chip manufacturers. The reason? Their business cycle is "most volatile," a polite way of saying they're too unpredictable for her liking.

Nobody wants to invest in a sector that goes up and down like a broken elevator, right? For Wood, this instability makes memory chips too risky a bet. She prefers to stay away from what she calls the market's "rollercoaster rides," seeking more stable and predictable investments.

If there's one sector where Cathie Wood sees a bright future, it's artificial intelligence. According to her, we are "just at the beginning" of this revolution, and the opportunities are immense. That's why her eyes are set on companies like Nvidia and AMD.

These semiconductor giants, unlike memory manufacturers, are considered less subject to market whims. Their exposure is at the "less-cyclical end of the spectrum." In short, Wood is betting on the thoroughbreds of AI, promising a long and, hopefully, less turbulent race. Who wouldn't bet on the future of AI, especially when they tell you the race has just begun?