When the AI wave took off last year, a number of stocks were picked by analysts and experts as future winners, poised in one way or another to benefit from the expected AI revolution.
Now, however, it turns out that the vast majority of these “winning stocks” fell on the stock exchange, write down Financial Times (FT) Wednesday.
According to the newspaper, this may indicate that investors have become more critical of stocks that cannot show clear profits.
AI portfolio declined
While about 60 percent of stocks in the S&P 500 have risen so far this year, more than half of the stocks in Citi's portfolio are AI winners, an index of companies that generated the most enthusiasm among the bank's clients in the past year. , decreased. Although more than three-quarters of companies rose last year.
According to the Financial Times, other investment funds that have tried to assemble similar portfolios of AI winners have also faced a similar experience.
More than half of the shares are in BlackRocks Robotics and Artificial Intelligence ETFInvesco Artificial Intelligence and Next Generation Software Fund also FirstTrust Nasdaq Artificial Intelligence and Robotics ETF According to the newspaper, it decreased this year.
Stuart Kaiser, head of US equity strategy at Citibank, believes the market is concerned that companies must prove they can make money.
“AI is still a big topic, but if you can't provide proof you'll get beaten up. Just saying the word 'AI' 15 times no longer works,” he commented, according to the Financial Times.
You must be able to demonstrate profitability
This week, Nvidia, which produces graphics cards that are used, among other things, to train artificial intelligence, became the world's most valuable listed company after overtaking Microsoft in terms of market capitalization. Nvidia is now worth about $3.330 billion.
Nvidia shares have more than doubled in value so far this year, and are continuing to do so after tripling last year.
According to investment strategist Mona Mahajan at Edward Jones, investors are not getting carried away by the hype, but are watching corporate earnings closely.
She commented, according to the newspaper, saying: “What makes Nvidia distinct is that it achieved the final results and showed real numbers.”
Although it has a market capitalization of more than $3,000 billion, many analysts have pointed out that the stock is cheaper now than it was at the same time last year if you look at the market cap associated with sales over the past 12 months, which has risen sharply.
In comparison, shares of big technology companies such as Salesforce, Snowflake, Intel and Adobe have fallen sharply after last year's strong rise.
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