Cathie Wood Rejects AI Bubble, Bets Big on AI and Crypto 

Cathie Wood and ARK Invest have made one of their boldest moves of 2025. Over November 25 and 26, investors funnelled over $140 million into equities.

The focus was on artificial intelligence, blockchain, and innovation-driven stocks. The buying spree comes as Wood continues to reject warnings of an AI bubble.

ARK’s Two-Day Shopping Spree

The purchases were spread across several major names. Alphabet (GOOG) received the largest investment, with $56 million spent on 174,293 shares. The timing was notable, coming right after Google launched Gemini 3, its latest AI model.

Coinbase was another big target. ARK bought over $20 million worth of shares across the two days, including 43,807 shares on November 26 alone.

Circle, the crypto payments company, saw $7.6 million added to ARK’s holdings. This was on top of $30 million already invested earlier in November.

Block, the fintech company led by Jack Dorsey, received $13.5 million. Deere & Co., a surprising addition, was bought for $14.2 million. This new position was spread across ARKK, ARKQ, and ARKX funds.

ARK also added $1.6 million to its own Bitcoin ETF, ARKB. In total, ARK deployed more than $140 million in just 48 hours. The focus was clear: AI, crypto, and innovation.

Rejecting the AI Bubble Narrative

Cathie Wood has repeatedly pushed back against claims of an AI bubble. In November alone, she has rejected the idea many times.

On Monday, @ARK_Funds posted on X, sharing a clip from Ark Invest’s In The Know podcast. In the segment, Cathie Wood stated, “The AI story has just begun.”

She described recent pullbacks as a “liquidity squeeze.” She predicted this squeeze would ease over the next few weeks.

Wood also responded to a recent MIT study that claimed corporations are not seeing productivity gains from AI and concluded it was an AI bubble. She disagreed, saying the study reflects a transitional phase.

Wood explained that companies must restructure and transform completely to unlock AI’s full potential. This process will take time.

On the consumer side, however, she said AI adoption is already flourishing. Tools like ChatGPT and other chatbots are spreading rapidly among everyday users.

Wood pointed to Palantir Technologies as proof of rising enterprise demand. She noted that Palantir’s U.S. commercial business grew 123% last quarter. She said this surge shows CEOs and decision-makers are under pressure to act quickly to stay competitive.

Her message is clear. The AI bubble narrative overlooks both consumer enthusiasm and the accelerating demand from corporations.

Liquidity Flood Ahead Vs. AI Bubble concerns

ARK’s latest research note highlights a powerful macro backdrop. The October-November government shutdown drained $621 billion from markets.

The Treasury cash balance, which peaked at $942 billion, is now declining toward its normal level of $600 billion. Another $300 billion is expected to flow into markets over the next five to six weeks.

Quantitative tightening is set to end on December 1. Federal Reserve officials have also turned dovish, with an 85–90% chance of a rate cut soon.

Wood believes this flood of liquidity will lift high-growth stocks sharply. She argues that the AI bubble narrative will look silly in hindsight once liquidity drives prices higher.

One of the most surprising moves was ARK’s purchase of Deere & Co. Known for tractors and farm equipment, Deere is not a typical AI or crypto play.

But ARK sees Deere as a robotics and automation company. Its investments in precision agriculture and autonomous machinery fit ARK’s innovation theme. Adding Deere shows that Wood is broadening her definition of AI-driven growth.