• Cathie Wood has picked a stock she thinks will be an artificial intelligence (AI) boom winner.
• Exact Sciences (EXAS) stock is up more than 40% in 2023.
• Now, Wood believes it is well-positioned to keep growing as AI overtakes the market.

In November 2021, Cathie Wood described artificial intelligence as the “next big frontier” of the tech sector. Roughly a year later, OpenAI released advanced chatbot ChatGPT, and almost overnight, the ways investors viewed AI began to shift.

Now the market is experiencing an AI boom that is likely to keep expanding. As part of this, Wood is doubling down on one particular company leading the way in artificial intelligence: Exact Sciences (NASDAQ:EXAS).

Exact Sciences operates in the molecular diagnostics space and it is known for cancer detection. Wood feels it has a clear edge over competitors and given its 48% surge year to date, she may just be right about EXAS stock.

Let’s take a look at her latest big bet and why other investors should care.

Why Cathie Wood Is Bullish on EXAS Stock

For Wood, her strategy with EXAS stock comes down to one word: data.

Specifically, it comes down to the edge that she feels data gives the company. She recently appeared on on CNBC where she discussed the importance of data and AI. In her words:

“Many people say data is the new gold as they were talking about the cloud and other movements in technology, I think that’s ever more true now with artificial intelligence.”

As Wood sees it, proprietary data is the key to succeeding in an economy rapidly shifting toward artificial intelligence. This is where Exact Sciences comes into play. In her view, the company has a clear competitive edge due to its data on cancer and its strong global distribution, which can be partially attributed to its molecular diagnostic testing franchise.

EXAS stock is currently the third-largest holding in Wood’s ARK Innovation ETF (NYSEARCA:ARKK), occupying roughly 7.5% of the portfolio at a value of $600.7 million. The only two companies above it are pandemic-era winners Tesla (NASDAQ:TSLA) and Zoom Video Communications (NASDAQ:ZM).

EXAS stock is also the top holding in Wood’s ARK Genomic Revolution ETF (BATS:ARKG), occupying more than 11% of the fund with a market value of $256,125,641.60. Both funds have been performing very well since the year began.

What Comes Next

For many investors, the name Cathie Wood is synonymous with contrarian bets. But EXAS stock doesn’t seem like a contrarian play at all. Instead, it is a high-performing company with significant growth potential. And Wood sees the company as having room to grow as the AI boom takes shape.

As CNBC reports:

“In its base case, Ark believes Exact Sciences could compound at an average annual rate of 25%, reaching $140 by 2027. The stock traded around $67 apiece on Wednesday.”

As of this writing, EXAS stock is trading above $70 per share. If Wood’s bullish thesis is correct, Exact Sciences will be in an excellent position to ride the AI wave to the top.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/cathie-wood-is-doubling-down-on-this-hidden-gem-artificial-intelligence-stock/.

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