ARK Invest CEO Cathie Wood on Tuesday pushed back on fears of an artificial intelligence bubble, while flagging the possibility of a “reality check” on AI valuations.

Speaking to CNBC’s Dan Murphy on the sidelines of Saudi Arabia’s Future Investment Initiative (FII) in Riyadh, Wood said that as interest rates begin to rise, “there will be a shudder” in markets.

“We are going to reach a moment in the next year where the conversation will shift from lower interest rates to rising rates,” the closely watched investor said.

“People think innovations and interest rates are inversely correlated. That’s not true over history,” Wood said.

“I want to disabuse people of that notion. But nonetheless, we think there will be a reality check.”

Her comments come amid concerns of soaring tech valuations as both businesses and investors pour money into the sector.

Global markets rallied at the start of this week, with investors buoyed by hopes that the U.S. and China could soon reach an agreement on trade. U.S. stocks jumped to fresh records on Monday with Asian markets also seeing solid gains.

Investors are closely watching a number of key market catalysts this week, including Big Tech earnings and a Federal Reserve interest rate decision. The U.S. central bank is widely expected to cut rates for the second time this year.

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