Cathie Wood Doubles Down on AI Bet, Scoops Up $2 Million in Tumbling Tempus AI Shares

In a bold move emblematic of her high-conviction investment style, Cathie Wood of Ark Investment Management has purchased an additional $2.1 million worth of shares in Tempus AI Inc. (TEM), a healthcare technology firm that has seen its stock price halve since last October.

The purchase, executed on March 11 and 12 through the Ark Genomic Revolution ETF (ARKG), comes as Wood continues to champion artificial intelligence as a transformative force, particularly in the healthcare sector, which she calls the "most underappreciated application of AI."

Wood's strategy is no stranger to volatility. Her flagship Ark Innovation ETF (ARKK) soared 153% in 2020 but plunged more than 60% in the 2022 bear market. While the fund outperformed the S&P 500 last year, its longer-term track record reveals the strain of such swings: a five-year annualized return of -11% versus the S&P 500's 12.6%, according to Morningstar data. An analysis by Morningstar's Amy Arnott previously ranked ARKK as the third-biggest wealth destroyer among funds from 2014-2024.

Tempus AI, which went public in June 2024, provides AI-driven diagnostic tools and sells anonymized patient data to drug developers. Despite reporting better-than-expected Q4 revenue of $367.2 million (up 83% year-over-year) and a narrower loss per share, its stock fell roughly 7% post-earnings and now trades around $50, well below its October high near $104.

Analyst sentiment remains cautious. JPMorgan's Casey Woodring recently lowered the price target on TEM to $60 from $80, citing "clouded visibility" on data revenue and challenges with an acquired unit, Ambry Genetics.

Wood's latest buy contradicts significant investor sentiment. The ARKK ETF has seen approximately $1.45 billion in net outflows over the past 12 months, per VettaFi data. Yet, in a January letter, Wood dismissed talk of an AI bubble, predicting a "powerful" economic rebound by 2026 and labeling the current era as the dawn of "the most powerful capital spending cycle in history."

Investor Reactions:

Michael Torres, Portfolio Manager at Horizon Advisors: "This is classic Cathie. She's not just buying a stock; she's reinforcing a thesis. While the volatility in ARK funds is not for the faint of heart, her focus on genomic sequencing and AI in healthcare is a legitimate long-term narrative. Tempus sits right at that intersection."

Sarah Chen, Retail Investor: "I've followed her for years, and this gives me a bit of confidence. It shows she truly believes in her picks and isn't just chasing momentum. If she's buying more after a 50% drop, she must see real value the market is missing."

David Riggs, Financial Blogger at 'The Skeptical Investor': "This is a desperate attempt to prop up a sinking position. Tempus is her fourth-largest holding in ARKK, and it's collapsing. She's using new investor money to buy more of a loser, masking the fund's poor performance. That $7 billion in destroyed wealth Arnott highlighted? She's adding to the tally."

Dr. Anya Sharma, Biotech Analyst: "The operational metrics for Tempus are actually strong—diagnostic unit growth and data business acceleration. The market is overly focused on short-term acquisition accounting. Wood might be early, but the underlying platform has unique potential."

This story was originally published by TheStreet on Mar 15, 2026. Add TheStreet as a Preferred Source by clicking here.