Cathie Wood's been riding the AI wave longer than most people realize. Her Ark Innovation ETF didn't just jump on the trend recently—we're talking over a decade of AI exposure. That's why when you look at her best-performing holdings this year, the AI story really stands out.

Let me break down what's been working for her. First up is Palantir Technologies. This one's been absolutely explosive, and it's become Wood's top AI pick by a significant margin. The stock absolutely flew in 2024, driven by strong revenue acceleration and some key catalysts. When the company got added to the S&P 500, that was huge. Then came the Nasdaq-100 inclusion. But honestly, the real momentum came from investors betting that the incoming administration's focus on government efficiency and national security would be a major tailwind for Palantir, given that the U.S. government is their biggest customer.

Then there's Nvidia. Here's the thing—Wood actually reduced her Nvidia stake back in 2022 and 2023, but she never completely exited. The company still shows up in a couple of her ETFs, and that decision looks pretty smart in retrospect. Nvidia's GPU dominance in AI training and deployment has been basically unmatched. The chipmaker's done well beyond just AI though. Their CEO talks about a broader shift from general computing to accelerated computing, which is a larger trend.

And we can't talk about Cathie Wood stock picks without mentioning Tesla. This is arguably her most iconic holding. Tesla ranks as the top position across multiple Ark ETFs, including the Innovation ETF and her robotics-focused fund. The stock had a massive run starting in November 2024, and a lot of that momentum tied to Elon Musk's connection with the incoming Trump administration.

Now, looking at whether these three remain solid picks going forward—that's where opinions diverge. Some analysts think Palantir and Tesla could cool off, but most remain bullish on Nvidia. The valuation story matters here. Palantir's trading at pretty stretched multiples, and Tesla's not cheap either, though their robotaxi plans could be a catalyst. Nvidia seems to have the most room to run as their new Blackwell GPUs ramp up.

What's interesting about tracking Cathie Wood's stock selections is what they tell us about where she sees the future. Her conviction in these AI plays—especially holding Tesla as her largest position across multiple funds—shows she's thinking beyond just the obvious AI infrastructure play. She's betting on AI transforming entire industries, from transportation to government operations.