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Cathie Wood shares her price target for Tesla, which is $2,600, based on the convergence of robotics, energy storage, and AI. She believes that Elon Musk's focus on humanoid robots and robo-taxis will drive this growth, although their current model doesn't fully account for the potential impact of humanoid robots.
The price of goods and services could collapse with AI-driven productivity, leading to a deflationary economy.
Cathie Wood believes that the most profound application of AI will be in healthcare, driven by the convergence of sequencing technologies. This area is currently the most inefficiently priced part of the market, representing a significant opportunity.
Cathie Wood discusses how five major platforms involving 15 different technologies are set to drive explosive growth in the economy. This convergence, particularly in autonomous mobility and healthcare, is expected to significantly uplift productivity and real GDP growth.
The emergence of AI could result in unprecedented productivity gains, potentially leading to significant economic growth and changes in employment patterns.
The world's GDP growth is expected to accelerate due to AI, as it provides billions of coworkers to enhance productivity.
Cathie Wood predicts that truly disruptive innovation could see a 40 to 45 percent compound annual rate of change in the public equity world. She suggests that the private world might experience even more significant changes.
Cathie Wood explains that from 2019 to 2024, the Mag 6 tripled in valuation while truly disruptive innovation only increased by 30%. This was due to investors playing it safe by investing in large, cash-rich stocks. However, she believes that the time for truly disruptive innovation to shine is now, as risk appetite and time horizons are extending.
The price of goods and services could collapse due to AI-driven productivity, leading to hyper-deflation and increased material prosperity.