The AI trade expanded in unexpected ways and moved beyond several of the market’s favorite big tech companies.
So investment strategies based on the Magnificent Seven — which is responsible for more than half the S&P 500 Index’s 70%-plus rise since the start of 2023 — are missing some of the firms that are also expected to thrive in an AI future, like Broadcom Inc., Oracle Corp. and Palantir Technologies Inc.
“Just because the Mag Seven won past tech cycles like mobile, the internet and e-commerce, that doesn’t mean they’ll win here,” said Chris Smith, who oversees $2.4 billion as the portfolio manager of Artisan Partners’ Antero Peak Group.
Read more | BLOOMBERG