Three years ago, ChatGPT was an obscure technology that meant nothing to Wall Street. Today, artificial intelligence is seemingly the only thing that matters to the market.
With the “Magnificent Seven” tech names making up over 30% of the market capitalization of the S&P 500, and shares of huge companies like Oracle Corp rallying 36% in a day on AI catalysts, investors can’t afford to fall behind on the AI trade.
AI development is moving at a rapid pace as the hyperscalers — the biggest cloud-computing players, including Microsoft, Amazon, Meta and Alphabet — are on track to deploy nearly $400 billion in capital expenditures by the end of the year.
AI adoption among consumers is also reaching an inflection point, John Belton, portfolio manager at Gabelli Funds, said during a fund webinar Thursday. ChatGPT’s weekly active users surged to 700 million in August, a fourfold increase from last year.
Picking the right AI investments is more important now than ever. “We are seeing an even more concentrated equity market and AI winner basket,” Mizuho desk-based analyst Jordan Klein wrote earlier this week.
Read more | MARKET WATCH