Ark Invest CEO Cathie Wood purchased Meta shares worth $27.9 million last week, betting on the company's continued expansion into artificial intelligence.

The flagship Ark Innovation ETF delivered a 35.49% return last year, significantly outperforming the S&P 500's 17.88% gain over the same period. As of this writing, Wood's flagship Ark Innovation ETF (ARKK) is up 8.66% year-to-date, while the S&P 500 has surged 11.85%.

Wood focuses on high-tech companies in areas such as AI, blockchain, biomedical technology, and robotics. She believes these companies possess strong growth potential, but the high volatility of their stock prices also causes significant fluctuations in Ark's fund net asset value. A report from Morningstar analyst Amy Arnott shows that over the decade through 2025, the Ark Innovation ETF has eroded nearly $5 billion in investor wealth, ranking fourth in wealth destruction among mutual funds and ETFs.

Wood remains optimistic about AI, viewing it as the core driver of productivity, economic growth, and corporate earnings expansion in the coming years. "There were 200 railroad bankruptcies in the 19th century. I don't think AI buildout will follow that pattern. Back then, railroads were built on vision alone, whereas today's AI businesses have very strong revenue growth momentum," Wood recently posted on X platform (formerly Twitter).

In another August post on X, Wood noted that U.S. corporate earnings remain exceptionally strong, with domestic pre-tax profits as a share of GDP at 13.2%, near multi-decade highs. Some of this earnings resilience stems from the massive monetary and fiscal stimulus during the pandemic. However, Wood believes another key factor supporting current margins is that companies are leveraging AI to boost productivity and protect profit margins. "I think we're still in the early stages of this trend," she added, stating that companies that effectively implement AI will pull ahead of others.

Ark's daily trading data shows that on September 9, Wood's funds purchased a total of 43,091 Meta shares, valued at approximately $27.9 million. Meanwhile, Wood sold a combined 86,531 shares of Google parent Alphabet on September 9 and 11, worth about $28.7 million.

Over the past week, Meta launched the Muse AI personal assistant, lifting market sentiment and driving the stock up more than 6%. The social media giant describes Muse as a "personal AI agent for the masses," serving everyday users by executing actions and handling daily tasks on their behalf.

Wedbush Securities recently raised its Meta price target from $595 to $650, maintaining a neutral rating. In its research note, the firm described Muse as a key advancement in Meta's AI product rollout, but noted that Meta needs to drive paid conversions, and meaningful financial returns will take time.

Meta shares are down approximately 1.8% year-to-date, underperforming the S&P 500. The company's second-quarter report released in July missed expectations, with earnings below market consensus and weaker-than-expected revenue guidance. Meta does not rank among the top ten holdings in the Ark Innovation ETF.