Cathie Wood is the head of Ark Investment Management, which operates eight exchange-traded funds (ETFs) focused on innovative technology stocks. Last year, she said software companies will likely be the next big opportunity in artificial intelligence (AI), predicting they could generate $8 in revenue for every $1 spent on hardware from chip giants like Nvidia.

Since making that prediction, Wood has piled into several AI software opportunities. The Ark Venture Fund recently bought shares in private companies like ChatGPT creator OpenAI, Claude creator Anthropic, and Elon Musk's xAI. Plus, is the largest holding in the flagship Ark Innovation ETF because Wood believes its autonomous self-driving software is the biggest AI opportunity in the world.

If Wood is right about AI software, a number of other stocks could deliver spectacular returns in the coming years. Here's why investors might want to buy shares in Palo Alto Networks (NASDAQ: PANW) and C3.ai (NYSE: AI).

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Source Fool.com