Cathie Wood didn't jump on the artificial intelligence (AI) bandwagon. Her Ark Innovation ETF has been invested in AI for more than a decade. The exchange-traded fund (ETF) lists AI at the top of the list of disruptive innovations that should deliver strong long-term growth.

A rate-cutting campaign by the Federal Reserve, a resilient economy and strong corporate earnings provided another solid backdrop for the stock market in 2024. After a stellar 2023, it was a great year for growth stocks in the software space like Palantir Technologies and AppLovin after the S&P 500 and Nasdaq composite confirmed new uptrends in early November 2023 with one-day gains of more than 1.

Artificial Intelligence (AI) is revolutionizing industries worldwide, fueling growth and innovation. Investors seeking to harness this momentum may explore AI-focused ETFs, Global X (BOTZ), Robo Global Robotics and Automation (ROBO),

Alphabet ( GOOGL -0.26%) ( GOOG -0.24%) currently trades at $196 per share. However, Morgan Stanley analysts led by Brian Nowak have outlined a bull-case scenario where the stock advanced 38% to $270 per share in 2025, driven by strong revenue growth across its advertising and cloud computing businesses.

Seemingly overnight, artificial intelligence became a major growth industry. The AI boom is driving demand for semiconductors, which are crucial components in AI systems. Two compelling semiconductor companies to consider are Wolfspeed (NYSE: WOLF) and Advanced Micro Devices (NASDAQ: AMD).

Since Warren Buffett became the CEO of Berkshire Hathaway ( BRK.A 0.80%) ( BRK.B 0.95%) in 1965, its stock has delivered a compound annual return of 19.8%. That would have been enough to turn a $1,000 investment into $42.5 million, whereas the same investment in the S&P 500 would have grown to just $325,053 over the same period.