In this article, we will discuss Cathie Wood’s 5 Biggest AI and Data Center Stock Picks. Please visit Cathie Wood’s 11 Biggest AI and Data Center Stock Picks, if you would like to see the extended list and the methodology behind it.

5. Tempus AI Inc. (NASDAQ:TEM)

Cathie Wood’s Stake: $446,275,249 

Tempus AI Inc. (NASDAQ:TEM) is an AI healthcare play in Cathie Wood’s portfolio. It’s a healthcare diagnostics and data platform that builds large-scale patient datasets and applies AI tools to help physicians choose treatments and run clinical decision-making.

Tempus AI Inc’s (NASDAQ:TEM) core moat comes from the scale and depth of its data. It has accumulated more than 450 petabytes of clinical and genomic data. This improves the accuracy and usefulness of its AI models and makes it harder for competitors to replicate its dataset.

Tempus AI Inc. (NASDAQ:TEM) is beginning to expand into related diagnostic markets, which could significantly expand its revenue base. Management estimates that scaling ECG-based testing alone could generate over $200 million in annual revenue over time.

4. Teradyne Inc (NASDAQ:TER)

Cathie Wood’s Stake: $456,077,004 

Teradyne Inc (NASDAQ:TER) is perhaps the most notable AI pick in Cathie Wood’s portfolio. Its bull case is simple: with everyone going hungry for AI chips, there is huge demand for testing these chips before deploying them into critical AI infrastructure like data centers, GPUs, and high-performance computing systems. As AI chips become more complex, testing becomes more important and more valuable per chip. Teradyne Inc (NASDAQ:TER) does not have strong competition. The semiconductor automated test equipment market is dominated by two players: Teradyne and Advantest.

As companies deploy AI chips in critical applications, this hardware would require significantly more testing than traditional chips. For example, high-bandwidth memory (HBM), which is used in nearly every AI accelerator, can require up to 10x more test intensity compared to standard DRAM, effectively expanding Teradyne Inc’s (NASDAQ:TER) revenue opportunity per unit.

For the company, AI demand represents over 60% of revenue and is expected to reach around 70% in the upcoming quarters.

JP Morgan recently upgraded Teradyne Inc (NASDAQ:TER) to Overweight following the stock’s post-earnings decline. The firm said nothing structurally changed in the long-term story.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Teradyne, Inc. (NASDAQ:TER) in its Q1 2026 investor letter:

“Teradyne, Inc. (NASDAQ:TER) designs and manufactures testing equipment for semiconductors. Investors have appreciated its strong position in testing for next-generation memory and application specific integrated circuit (ASIC) testing for AI workloads. Additionally, there is potential for the company to gain market share with the largest semiconductor company in the world.”

3. Advanced Micro Devices Inc (NASDAQ:AMD)

Cathie Wood’s Stake: $551,414,664 

Advanced Micro Devices Inc (NASDAQ:AMD) does not need to beat Nvidia to be a winner. It can do very well simply by being the strong second option next to Nvidia in AI infrastructure. AMD is an AI play because its products sit directly inside the systems that train and run artificial intelligence. Its EPYC CPUs handle core data center computing, while its Instinct GPUs are designed for AI training and inference workloads.

Rather than competing only at the chip level, Advanced Micro Devices Inc (NASDAQ:AMD) is moving toward solving the full AI infrastructure problem. It is combining GPUs, CPUs, and networking into one integrated system approach so that customers can build entire AI data center setups, not just buy individual components. This shift is important because AI is increasingly about large-scale systems, not single processors.

Morgan Stanley recently raised its price target on Advanced Micro Devices (NASDAQ:AMD) from $255 to $360 amid stronger semiconductor market conditions and rising demand across the chip sector.  Morgan Stanley highlighted AMD’s MI355 GPUs and upcoming Helios rack systems. Helios racks are described as the bigger driver for Advanced Micro Devices Inc’s (NASDAQ:AMD) revenue this year. These systems combine GPUs, CPUs, and networking into full AI infrastructure setups, which is where most AI spending is shifting.

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.”

2. Palantir Technologies Inc. (NASDAQ:PLTR)

Cathie Wood’s Stake: $574,470,332 

Geopolitical conflicts, rising military budgets and the evolution of modern warfare back the bull case for Palantir Technologies Inc. (NASDAQ:PLTR). The company has positioned itself as a full-stack AI platform for warfare, where data, intelligence, and decision-making are tightly integrated into one system. Palantir Technologies Inc. (NASDAQ:PLTR) has become a one-stop shop for governments for defense needs. Its Foundry acts as the data backbone, pulling in information from many sources and organizing it into usable models for analysis. Gotham is the operational layer, combining intelligence streams into a real-time battlefield picture and turning data into mission planning and execution. Apollo handles continuous software delivery for systems to be updated even in disconnected or remote environments. The Artificial Intelligence Platform (AIP)  enables AI-driven decision-making across the entire stack.

The results are clear. Before AI integration, human analysts could identify around 100 targets per day, with decision cycles taking 24–72 hours. With AI systems like Maven and Palantir Technologies Inc’s (NASDAQ:PLTR) stack, target capacity increased dramatically to 1,000 targets per day, then up to 5,000 targets per day with more advanced language models. Future iterations are expected to reach around 1,000 targets per hour.

GMO stated the following regarding Palantir Technologies Inc. (NASDAQ:PLTR) in its fourth quarter 2025 investor letter:

“The other eight U.S. Information Technology stocks that we held short delivered an average performance of more than 63%. Palantir Technologies Inc. (NASDAQ:PLTR), which was the single biggest detractor from absolute returns at the total portfolio level, was up a spectacular 135% for the year and is, somewhat bewilderingly, trading at a price/sales ratio well in excess of 100. Indeed, one of the reasons we remain excited about the Equity Dislocation Strategy is that there are plenty of stocks that continue to surf a wave of speculative excess.”

1. Tesla Inc. (NASDAQ:TSLA)

Cathie Wood’s Stake: $1,310,705,149

Tesla Inc. (NASDAQ:TSLA)  is no longer just an EV company. It is becoming an AI and robotics company, backed by heavy investment in compute, chips, and automation. The company has raised its capital spending plan to $25 billion from $20 billion to fund this pivot. Tesla Inc. (NASDAQ:TSLA) is targeting mass production of its Optimus humanoid robot with a goal of reaching 1 million units annually by the late 2020s and up to 10 million units per year in the early 2030s. Why does this matter? The global robotics market is estimated to reach about $416 billion by 2035, growing at an annual rate of roughly 14%. This could be a key growth driver for Tesla in the future.

Tesla Inc. (NASDAQ:TSLA) also has a key data advantage thanks to its global fleet of millions of vehicles, which continuously collect real-world driving footage. That data is fed back into its neural networks, creating a feedback loop that improves its AI learning systems.

Unlike competitors that rely on LiDAR and high-definition maps, Tesla Inc. (NASDAQ:TSLA) uses a vision-based approach built around cameras and neural networks. Tesla’s camera-based system relies on AI to interpret the world from video, turning raw driving data into real-time decisions and making autonomy a software problem rather than a hardware one.

Despite the rising competition in the EV space, Tesla Inc. (NASDAQ:TSLA) can offset the loss of market share with innovation and strikes in the AI domain.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.