After nearly three years of sector-specific slowdowns triggered by tighter monetary policy, Wood now sees signs of economic stabilization and renewed expansion.
Her outlook hinges on the accelerating impact of AI and automation across industries, which she believes will reduce costs, boost output, and help keep inflation under control even as growth resumes.
Wood attributed the anticipated economic rebound to a structural transformation underway in both the public and private sectors, driven by generative AI and machine learning.
These technologies are reducing labor intensity in knowledge-based industries, shrinking project timelines, and freeing up human capital for higher-value tasks.
As one example, she referenced developments at the US Food and Drug Administration, where AI models are already compressing multi-day workflows into minutes, signaling a step change in government productivity.
She noted that similar efficiencies are emerging across finance, legal, logistics, and healthcare, where AI is rapidly becoming embedded in core operations.
Wood believes this surge in digital productivity will not only lift corporate margins but also serve as a deflationary force, counteracting price pressures that typically accompany growth. By automating routine processes and improving decision-making speed, companies can scale faster without proportionally increasing input costs.
She argued that, unlike previous cycles driven by consumption or credit, this growth phase will be rooted in tangible efficiency gains. In her view, the US is entering a new investment climate where declining inflation expectations align with rapid innovation, creating an ideal backdrop for long-duration capital.
The bullish projection is based on growing institutional participation, Bitcoin’s role as a digital store of value, and its relevance in countries with unstable currencies.
She further sees untapped potential in Tesla’s robotics division and believes that humanoid robots could open up a global opportunity measured in tens of trillions of dollars.
In her view, Tesla’s strength lies in the simultaneous advancement of three critical technology verticals: robotics, AI, and energy systems, giving it a strategic lead in global innovation.
Ark has also increased its stakes in semiconductor and biotech companies aligned with long-term technological trends.
Wood anticipates a broader shift from economic stagnation toward a phase defined by exponential innovation, scalable productivity, and sustainable growth.
