In this article, we will discuss Cathie Wood’s 2026 Portfolio: 10 Best Stocks to Buy.
Ark Invest CEO Cathie Wood quickly became a Wall Street favorite back in the pandemic days with her disruptive investing and impressive returns. Her ARK Innovation ETF (ARKK) posted impressive gains of about 35% in two years through December 2021. But as macroeconomic conditions shifted and interest rates rose, the market rotated away from speculative plays, hitting ARK hard. According to Bloomberg, the fund has seen $120 million in net outflows in 2026 through Feb. 17. It’s down about 10% so far this year.
But Wood insists that ARK’s performance should be evaluated over the long term, as the fund invests in companies positioned to disrupt their industries years down the line. That claim is not unfounded. Stretching the lens to three years, her innovation ETF has delivered roughly 18% annualized returns, according to a Bloomberg report. While its five-year returns are less impressive, the fund has generated more than 17% annually over a period of ten years. This makes it important to examine her portfolio and see some of the best stocks to buy for 2026, according to the 70-year-old fund manager.
For this article, we scanned Cathie Wood’s ARK Invest’s latest portfolio updated as of the fourth quarter of 2025 and picked her 10 biggest positions. For each stock, we briefly explained the bull case that may be driving interest from Wood and other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy
10. Tempus AI (NASDAQ:TEM)
ARK’s Stake Value: $446.3 Million
Tempus AI (NASDAQ:TEM) uses AI to analyze and process large datasets to find patterns that help doctors treat patients more efficiently. ARK increased its stake in Tempus AI (NASDAQ:TEM) by 6% in the fourth quarter to about $446.28 million. Of the 1041 hedge funds tracked by Insider Monkey, 41 had stakes in Tempus AI (NASDAQ:TEM) as of the end of last year, up from 32 funds as of Sept. 30.
Why are hedge funds piling into Tempus AI (NASDAQ:TEM)?
Tempus AI (NASDAQ:TEM) shares are up about 17% over the past year. The company is seeing an increasing demand for its genomic testing and data tools. Its platform is now connected to over 5,000 healthcare providers in the U.S. Last month, Tempus AI (NASDAQ:TEM) posted Q4 results that showed its revenue rose by more than 80% year over year while adjusted EBITDA turned positive. For 2026, its revenue outlook indicates growth of 25%, which was slower than the pace last year but still came in just ahead of Wall Street’s estimates.
9. Teradyne (NASDAQ:TER)
ARK’s Stake Value: $456.1 Million
Automated test equipment and robotics company Teradyne (NASDAQ:TER) ranks ninth in our list of the best stocks to buy for 2026 according to Cathie Wood. ARK has a $456.08 million stake in Teradyne (NASDAQ:TER) as of the end of December. A total of 77 hedge funds in Insider Monkey’s database of over 1,000 funds had a stake in the company as of the end of the December quarter, sharply up from 58 funds the prior quarter.
What’s causing hedge funds to load up on Teradyne (NASDAQ:TER)?
Once seen as a cyclical play, Teradyne (NASDAQ:TER) is transitioning away from the smartphone chip market to testing equipment for AI infrastructure. Its UltraFLEXplus and Magnum 7 testing systems are seeing strong demand, resulting in revenue and margin growth. With AI data centers starting to hit limits due to copper electrical connections, Teradyne (NASDAQ:TER) is positioned to benefit from the industry’s shift towards optical interconnects and silicon photonics. Why? Teradyne (NASDAQ:TER) testing systems can verify these complex next-generation chips before they are deployed in crucial data centers.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Teradyne, Inc. (NASDAQ:TER) in its fourth quarter 2025 investor letter:
“Teradyne, Inc. (NASDAQ:TER) is a semiconductor testing equipment supplier. Shares rose after the company reported very strong results on the back of strong demand for test equipment for artificial intelligence (AI)-related semiconductors. The company is also seeing potential market share gains that likewise could support revenue growth in 2026.”
8. Robinhood Markets Inc (NASDAQ:HOOD)
ARK’s Stake Value: $543.6 Million
Robinhood Markets Inc (NASDAQ:HOOD) accounts for about 3.6% of the overall portfolio of Cathie Wood, as ARK owns a $543.6 million stake in the trading platform company. Robinhood Markets Inc (NASDAQ:HOOD) saw an increase in hedge fund sentiment as 83 funds reported owning shares in the company at the end of the December quarter, up from 77 funds in the previous quarter.
Over the past year, Robinhood Markets Inc (NASDAQ:HOOD) shares are up 110%. Can the stock keep growing and is it really one of the best stocks to buy for 2026?
Robinhood Markets Inc (NASDAQ:HOOD) has become one of the favorite trading platforms of young investors who are looking to directly invest in stocks, crypto and other asset classes. The explosive growth in interest from the younger audience Robinhood Markets Inc (NASDAQ:HOOD) saw during the pandemic days is ongoing. The number of funded accounts on the platform has grown from about 12 million in 2020 to 27 million as of last year. Robinhood Markets Inc (NASDAQ:HOOD) shares wavered last month after it missed revenue estimates for Q4 amid crypto weakness. However, it plans to expand across several products like options trading, stocks and prediction markets.
Robinhood CEO Vlad Tenev talked about how Robinhood Markets Inc (NASDAQ:HOOD) is expanding beyond crypto. It has plans for tokenized stocks and other on-chain financial services to let users trade digital versions of real assets on its own blockchain. Tenev said the company has 11 business lines generating $100 million or more in annual revenue.
Gator Capital Management stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its fourth quarter 2025 investor letter:
“During 2025, we had strong performance and outperformed both the broader market and the Financials sector benchmark. The two major drivers were our positions in Robinhood Markets, Inc. (NASDAQ:HOOD) and Anywhere Real Estate.
We entered 2025 with Robinhood as our largest position after it had a strong 2024. The stock had another strong year as the company continued to introduce new products, which drove accelerating growth. We hedged the position throughout the year as the valuation increased and currently have minimal exposure to the stock. One factor in hedging the position is that we are uncomfortable with the regulatory stability of prediction markets. We believe prediction markets have allowed people in non sports gambling states and people 18-20 years old to gamble on sports through their brokerage accounts because prediction markets are considered exchanges and not casinos.”
7. Advanced Micro Devices (NASDAQ:AMD)
ARK’s Stake Value: $551.4 Million
ARK decreased its stake in Advanced Micro Devices (NASDAQ:AMD) by 16% in the fourth quarter, ending the period with $551.4 million worth of shares in its portfolio. The semiconductor stock ranks seventh in the list of the best stocks to buy for 2026 according to Cathie Wood.
Advanced Micro Devices (NASDAQ:AMD) shares are down about 11% so far this year, but many believe it’s a good opportunity to buy. Why? Advanced Micro Devices (NASDAQ:AMD) has struck major AI deals with some of the top companies, including Meta, OpenAI and Oracle. These companies will use Advanced Micro Devices (NASDAQ:AMD)’s chips for AI training, inference, and cloud services. Advanced Micro Devices (NASDAQ:AMD) is targeting about 35% revenue CAGR through the decade. The company expects Q1 revenue to grow by about 32% year over year. The stock’s forward P/E is around 31, down more than half from its peak in late 2025.
Insider Monkey’s database shows that 132 hedge funds had stakes in Advanced Micro Devices (NASDAQ:AMD) as of the end of December, up from 115 funds in the previous quarter.
White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2025 investor letter:
“The top 5 positions for the White Falcon portfolio are precious metal royalty companies, AMD, NFI Group, EPAM, and Nu Holdings. Advanced Micro Devices, Inc. (NASDAQ:AMD) designs a broad range of digital semiconductors serving PCs, gaming consoles, and data centers, including the rapidly expanding AI market. Under CEO Lisa Su, the company was pulled back from the brink of bankruptcy and reshaped into a high‑performance computing leader. Over the past decade, AMD has steadily taken market share from Intel and emerged as a credible No. 2 in GPUs behind Nvidia. Given AMD’s volatility, we initiated a position in November 2022 and added to it again in April 2025. Management has guided to approximately $10 in Earnings per share (EPS) for FY2027E and more than $20 in EPS by 2030E. If the company delivers on these targets, then it should be a $400+ stock in a few years which is roughly 75% higher than current levels.”
6. Crispr Therapeutics Ag (NASDAQ:CRSP)
ARK’s Stake Value: $551.8 Million
Biotech company Crispr Therapeutics Ag (NASDAQ:CRSP) shares are up 16% over the past 12 months. Cathie Wood’s ARK increased its stake in the company by 8% in the fourth quarter, entering 2026 with a $10.5 million position.
Crispr Therapeutics Ag (NASDAQ:CRSP) has the first-mover advantage in the gene editing and gene therapy industries with its CRISPR-based treatment approved by the FDA. Its CASGEVY therapy for severe sickle cell disease and beta-thalassemia is already generating revenue through its partnership with Vertex. Crispr Therapeutics Ag (NASDAQ:CRSP) has a strong pipeline and an advanced technology to edit cells both outside the body.
Crispr Therapeutics Ag (NASDAQ:CRSP) saw a sharp increase in hedge fund sentiment in the fourth quarter, as 32 funds ended the quarter with the stock in their portfolios, up from 31 funds in the prior quarter.
Contrarius Global Equity Fund stated the following regarding CRISPR Therapeutics AG (NASDAQ:CRSP) in its third quarter 2025 investor letter:
“In December 2023, after nearly 6 years of human clinical trials, the FDA approved the first CRISPR-Cas9 gene editing therapy. This therapy is CRISPR Therapeutics AG’s (NASDAQ:CRSP) treatment for sickle cell disease.
Sickle cell disease (SCD) is a debilitating hereditary blood disorder that results in periods of excruciating pain and ultimately a life expectancy that is more than 20 years below the average. CRSP’s therapy, called Casgevy, knocks out the BCL11A gene, the gene responsible for suppression of foetal haemoglobin (HbF). With the gene’s activity disrupted, the body begins producing HbF on its own again. HbF naturally prevents sickle cell complications, providing a functional cure.
Sickle cell disease occurs in about 1 out of every 365 Black or African American births and about 1 out of every 16,300 Hispanic American births. CRSP has partnered with Vertex Pharmaceuticals, a much larger pharmaceutical company, to aid in commercialisation and distribution. Casgevy is not cheap, at about $2.2 million per use currently, but it should be a ‘one-and done’ treatment, and compares favourably to the lifetime impact from reduced healthcare costs from disease flare-ups (estimated to be between $4 million and $6 million). As part of the partnership with Vertex, CRSP retains 40% of profits worldwide. A potentially huge market opportunity given the estimate of 100,000 SCD sufferers in the US alone. Vertex appears to agree, it paid nearly $900 million upfront, and a further $200 million at FDA approval in order to increase their stake from 50% to 60%…” (Click here to read the full text)
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