Post Election Market Outlook and Investment Strategy - ARK Invest

Our central view is that the election changes the short-term policy backdrop, while the long-term investment opportunity remains anchored in innovation, adoption, and company fundamentals. Markets reacted sharply to how policy may affect infrastructure investment, healthcare, and business spending. The implications will vary considerably by company.

Innovation has advanced across multiple administrations because businesses and consumers adopt technologies that deliver practical benefits. Today, those benefits are becoming visible across several of our investment themes:

• AI adoption is translating into business growth. Palantir reported third-quarter 2026 revenue of $2.31 billion, up 96% year over year, while US commercial revenue grew 148% to $984 million, a concrete example of businesses committing resources to AI-enabled tools. We believe that as companies reorganize workflows around measurable productivity gains, they have a strong incentive to continue using and expanding those tools, although spending growth may be uneven.
  

• Robotaxis are gaining momentum, with growing adoption in Texas and California, two states where data-center development is facing pushback. ARK’s September update highlighted Tesla reaching approximately one million unsupervised robotaxi miles, a meaningful acceleration from its previous earnings update. Meanwhile, through June 2026, Waymo had logged over 21 million driverless miles in Austin and nearly 150 million across Los Angeles and the San Francisco Bay Area, illustrating how autonomous transportation is becoming part of everyday life.
  

• Autonomous transportation is already moving beyond demonstrations. ARK’s September research cited autonomous last-mile deliveries by drones and ground robots running at an annualized rate above four million globally. Autonomous transportation’s potential to lower transportation and logistics costs gives adoption an economic rationale that extends beyond any single administration.
  

• Progress in biology is reaching patients. Our research highlights Tempus AI’s use of clinical and molecular data to support treatment decisions and Twist Bioscience’s platform for manufacturing synthetic DNA used in research and diagnostics. Gene editing provides another tangible example: CRISPR Therapeutics and Vertex have brought CASGEVY, a potentially curative treatment for eligible patients with sickle cell disease or transfusion-dependent beta thalassemia, to market, with approximately 200 patients having received an infusion since launch, according to Vertex’s third-quarter 2026 earnings presentation. These developments demonstrate that the convergence of technology and biology is producing practical applications today.
  

Affordability remains an important connection between the policy environment and our investment thesis. Technologies that improve productivity, expand supply, and reduce costs can help address pressures facing households and businesses. The examples above illustrate why we believe demand for innovation can remain durable through changes in political leadership.

Policy can nevertheless influence the pace and distribution of growth. Power availability, permitting, and financing could delay some data-center projects. Slower construction could ease near-term capital spending and support cash flow for some cloud platforms, even as it constrains future capacity. For infrastructure suppliers, it could shift revenue further into the future. These effects create differences among companies rather than a uniform outcome for AI.

Healthcare also has potential areas of support across party lines, particularly cancer research and US scientific competitiveness. Increased NIH funding, if enacted, could support academic research and demand for life-science tools. Measures that expand healthcare coverage could improve access to diagnostics and treatment. These are potential tailwinds, with their scale and timing dependent on policy decisions.

Investment strategy

Our recent portfolio actions reflect a rotation toward higher-conviction opportunities within our innovation themes. They do not represent a broad reduction in our commitment to those themes.

Within semiconductors, we concentrated exposure toward NVIDIA. If power availability and permitting constrain data-center construction, generating the most revenue from each gigawatt of available power becomes increasingly important. We believe NVIDIA is well positioned on that measure. We also view NVIDIA-supplied projects as one of the easiest to finance, an advantage if financing for AI infrastructure becomes more selective.

Our increased emphasis on SpaceX complements that positioning. Its compute infrastructure uses NVIDIA chips exclusively, and we have high confidence in its ability to build and deploy infrastructure. Greater constraints on terrestrial data centers could also increase the strategic value of its longer-term orbital-computing opportunity, although meaningful technical and commercialization risks remain. Together, these portfolio decisions favor both the computing platform and the infrastructure developer we believe are best positioned to execute in a more constrained environment.

Within genomics, our portfolio decisions favored molecular data, diagnostics, and research tools, including Tempus AI, Twist Bioscience, and 10x Genomics, while reducing select pharmaceutical exposure.

• Tempus is applying AI and molecular data to clinical decisions. ARK’s research reported that more than 50% of US oncologists were connected to its platform. That existing clinical reach supports our interest in businesses that help physicians select treatments more precisely and generate additional data as adoption grows.

• Twist manufactures synthetic DNA used in drug discovery, diagnostics, and biological research. Its products support many research programs, providing exposure to demand for the tools that enable scientific progress. Broader adoption of AI-driven discovery could increase demand for these inputs, while additional NIH funding would provide a potential further benefit.
  

We believe technologies that improve research productivity and identify patients more precisely retain long-term relevance, although funding, reimbursement, and drug-pricing policies require careful assessment.

We recognize that long-term conviction does not lessen the impact of near-term losses. Our confidence rests on evidence of adoption, commercial demand, and scientific progress. Those developments support our long-term investment approach.

Important Disclosures

This material has been prepared exclusively to aid ARK’s distribution partners in explaining ARK’s post-election market outlook and investment strategy. It is not intended for, and should not be directly shared with, retail investors or the general public.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of an ARK Fund before investing. This and other information are contained in the ARK ETFs’ and ARK Venture Fund’s prospectuses and summary prospectuses, which may be obtained by visiting www.ark-funds.com. The prospectuses and summary prospectuses should be read carefully before investing.

Foreside Fund Services, LLC, distributor.

This material is for informational purposes only and is subject to change without notice. The views expressed are those of ARK Investment Management LLC as of November 6, 2026. Statements regarding the market outlook, policy developments, innovation adoption, individual companies, and investment strategy reflect ARK’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied. There can be no assurance that any expectations will be realized.

References to specific securities or companies are for illustrative purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any security. The securities discussed do not represent all investments made by ARK, and it should not be assumed that investments in the securities discussed were or will be profitable. Portfolio holdings and positioning vary by strategy and are subject to change.

Investing involves risk, including the possible loss of principal. Companies involved in disruptive innovation may face heightened risks related to technological change, competition, regulation, financing, and commercial adoption. Past performance is not indicative of future results. Information obtained from third-party sources is believed to be reliable, but ARK does not guarantee its accuracy or completeness.