Here’s Cathie Wood’s Top Defensive Stock Pick in 2026

Cathie Wood’s Stake: $574,470,332 

Geopolitical conflicts, rising subject budgets and the improvement of modern warfare backmost the bull lawsuit for Palantir Technologies Inc. (NASDAQ:PLTR). The institution has positioned itself arsenic a full-stack AI level for warfare, wherever data, intelligence, and decision-making are tightly integrated into 1 system. Palantir Technologies Inc. (NASDAQ:PLTR) has go a one-stop store for governments for defence needs. Its Foundry acts arsenic the information backbone, pulling successful accusation from galore sources and organizing it into usable models for analysis. Gotham is the operational layer, combining quality streams into a real-time battlefield representation and turning information into ngo readying and execution. Apollo handles continuous bundle transportation for systems to beryllium updated adjacent successful disconnected oregon distant environments. The Artificial Intelligence Platform (AIP)  enables AI-driven decision-making crossed the full stack.

The results are clear. Before AI integration, quality analysts could place astir 100 targets per day, with determination cycles taking 24–72 hours. With AI systems similar Maven and Palantir Technologies Inc’s (NASDAQ:PLTR) stack, people capableness accrued dramatically to 1,000 targets per day, past up to 5,000 targets per time with much precocious connection models. Future iterations are expected to scope astir 1,000 targets per hour.

GMO stated the pursuing regarding Palantir Technologies Inc. (NASDAQ:PLTR) successful its fourth 4th 2025 capitalist letter:

“The different 8 U.S. Information Technology stocks that we held abbreviated delivered an mean show of much than 63%. Palantir Technologies Inc. (NASDAQ:PLTR), which was the azygous biggest detractor from implicit returns astatine the full portfolio level, was up a spectacular 135% for the twelvemonth and is, somewhat bewilderingly, trading astatine a price/sales ratio good successful excess of 100. Indeed, 1 of the reasons we stay excited astir the Equity Dislocation Strategy is that....” (Click Here to Read the Letter successful Detail)

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While we admit the imaginable of PLTR arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.