Will the AI Momentum Continue? ETFs to Buy
The AI hype surrounding the tech sector has boosted the Nasdaq and the S&P 500 this year. In fact, the rally in these indexes this year has been driven by the Super Seven tech stocks, including Nvidia (up 174.7%), Meta (up 118%), Tesla (up 99%), Apple (up 45.3%), Alphabet (up 40%), Microsoft (up 39.4%) and Amazon (up 44.2%) (as of Jun 2, 2023).
So, basically, its a narrow market, where a few winners are driving the rally. Four of these seven companies are some of the largest in the world, with market caps of more than $1 trillion Apple, Microsoft, Alphabet and Amazon while Nvidia is close to that mark.
Will AI Mania Continue or Slow Down Ahead?
BMO Capital Markets chief investment strategist Brian Belski believes that the AI boom is real and likely to propel future growth for many stocks within the space," Belski wrote in a note, "despite an extremely strong (year-to-date) sector performance, we believe the momentum, even if it slows a bit, is likely persist for the foreseeable future," as quoted on Yahoo Finance.