Artificial intelligence (AI) was a big investment theme fueling technology stock growth last year. For instance, enthusiasm for all things AI helped the "Magnificent Seven" stocks provide outsize returns for shareholders and contributed to the Nasdaq Composite's jaw-dropping 43% return in 2023. Of note, five of those Magnificent Seven stocks can boast market capitalizations above $1 trillion (Meta Platforms is quite close at $987 billion and is at $667 billion).

Meanwhile, a host of other companies are emerging as leaders in AI and taking on big tech. One such business, Palantir Technologies (NYSE: PLTR), has a presence in some of Cathie Wood's Ark Invest funds. Wood was an early supporter of Palantir following the company's initial public offering (IPO) in 2020.

However, Wall Street was somewhat skeptical of the company due to its heavy reliance on government contracts. Throughout 2022, Palantir's main source of revenue from government deals began to decelerate -- causing concerns over the company's growth prospects. For a time in 2022, Wood and Ark Invest exited their position in Palantir entirely, selling over 30 million shares.

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Source Fool.com