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The year 2023 will be remembered as a turning point for tech stocks focused on artificial intelligence (AI). The shift in focus from traditional technology sectors to AI-powered companies has led to a massive stock rally that has changed the landscape of technology investments.
The year witnessed a massive rally, with the technology sector adding a whopping $4 trillion to its value. This surge was primarily fueled by an increased interest in AI. A significant part of this rally was due to the success of Nvidia, a leader in the development of high-end chips used to power AI products.
Nvidia's share price has seen an increase of 195% during 2023, propelling its market capitalization from $361 billion at the beginning of the year to over $1 trillion. Nvidia's market capitalization also surpassed that of Meta, formerly known as Facebook, earlier this year, signifying the shift in the technology investment pecking order???.
Other AI Companies’ Success Story
It's not just Nvidia that has benefited from this surge. Other companies, such as C3.ai, a developer of AI applications for businesses, have also seen significant growth, with their shares increasing more than 326% this year.
Tech giants such as Microsoft, a major investor in OpenAI, which developed ChatGPT, have also benefited from the AI rally. Microsoft's stock has seen a rise of 44.7% this year. Oracle’s latest earnings also received a boost from AI.
Generative AI, including models such as ChatGPT, have become buzzwords in the industry. Analysis from UBS bank shows that since January, nearly 500 companies across 27 sectors have made more than 3,500 references to generative AI and/or ChatGPT on their earnings calls, as quoted on Guardian.
Alphabet intensified its efforts in the field of artificial intelligence. Then there are Amazon and Meta. Amazon plans to include generative AI in its search experience.
Are AI ETFs Too Pricey?
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , which invests in companies that benefited from increased usage of robotics and AI, has gained 44.7% since the start of 2023. The fund has a P/E of as high as 35.33X. Another fund Invesco NASDAQ Internet ETF (PNQI - Free Report) , which houses the biggies like Meta, Google, Microsoft and Amazon, has a P/E of an outstanding 47.55X.
Missed the AI Rally? These ETFs Can be Good Entry Points
If you have not yet invested in AI and find the current prices of available ETFs to be too high, it's important to note that there are a few ETFs that still maintain an attractive valuation. These particular ETFs have not reached excessively high price levels, making them a favorable entry point to participate in the ongoing AI rally.
Image: Bigstock
Missed the AI Rally? These ETFs Are Still Cheap
The year 2023 will be remembered as a turning point for tech stocks focused on artificial intelligence (AI). The shift in focus from traditional technology sectors to AI-powered companies has led to a massive stock rally that has changed the landscape of technology investments.
The year witnessed a massive rally, with the technology sector adding a whopping $4 trillion to its value. This surge was primarily fueled by an increased interest in AI. A significant part of this rally was due to the success of Nvidia, a leader in the development of high-end chips used to power AI products.
Nvidia's share price has seen an increase of 195% during 2023, propelling its market capitalization from $361 billion at the beginning of the year to over $1 trillion. Nvidia's market capitalization also surpassed that of Meta, formerly known as Facebook, earlier this year, signifying the shift in the technology investment pecking order???.
Other AI Companies’ Success Story
It's not just Nvidia that has benefited from this surge. Other companies, such as C3.ai, a developer of AI applications for businesses, have also seen significant growth, with their shares increasing more than 326% this year.
Tech giants such as Microsoft, a major investor in OpenAI, which developed ChatGPT, have also benefited from the AI rally. Microsoft's stock has seen a rise of 44.7% this year. Oracle’s latest earnings also received a boost from AI.
Generative AI, including models such as ChatGPT, have become buzzwords in the industry. Analysis from UBS bank shows that since January, nearly 500 companies across 27 sectors have made more than 3,500 references to generative AI and/or ChatGPT on their earnings calls, as quoted on Guardian.
Alphabet intensified its efforts in the field of artificial intelligence. Then there are Amazon and Meta. Amazon plans to include generative AI in its search experience.
Are AI ETFs Too Pricey?
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report) , which invests in companies that benefited from increased usage of robotics and AI, has gained 44.7% since the start of 2023. The fund has a P/E of as high as 35.33X. Another fund Invesco NASDAQ Internet ETF (PNQI - Free Report) , which houses the biggies like Meta, Google, Microsoft and Amazon, has a P/E of an outstanding 47.55X.
Missed the AI Rally? These ETFs Can be Good Entry Points
If you have not yet invested in AI and find the current prices of available ETFs to be too high, it's important to note that there are a few ETFs that still maintain an attractive valuation. These particular ETFs have not reached excessively high price levels, making them a favorable entry point to participate in the ongoing AI rally.
ETFs in Focus
iShares Robotics and Artificial Intelligence Multisector ETF (IRBO - Free Report) ) – P/E: 20.37X
ROBO Global Robotics & Automation Index ETF (ROBO - Free Report) ) – P/E: 22.93X
Global X Artificial Intelligence & Technology ETF (AIQ - Free Report) ) – P/E: 25.01X
First Trust Nasdaq Artificial Intelligence & Robotics ETF (ROBT - Free Report) ) – P/E: 27.49X