Nvidia’s astonishing gains – it’s up almost 40 per cent over the past month and 170 per cent this year – raise the question: are animal spirits driving stocks?
They may be driving some stocks but investors are being selective in their AI purchases. Looking at the main ETFs that focus solely on AI-related stocks shows more than half have actually fallen this year. One such stock, Salesforce, recently suffered its biggest one-day drop in 20 years after missing revenue expectations.
The same is true of tech stocks in general. Although the Nasdaq keeps hitting highs, more component stocks are hitting 52-week lows than 52-week highs.
Looking beyond technology, Ritholtz Wealth Management’s Michael Batnick notes that while the S&P 500 is up 15.5 per cent in 2024, the median stock is up less than 5 per cent. Over the past 30 days, only one in six stocks has outperformed the index, easily the lowest reading of the past decade.
Zuckerberg’s culture shift at Meta could make it hard to find new recruits willing to work in his macho organisation
Keeping sea lice from farmed fish will boost aquaculture health and profits
Bosch Unlimited 7 Aqua review: Saving time and effort on household cleaning
Irish space race: domestic companies pushing the frontiers of AI, space stations and acoustic technology
Investors have decided a few mega-cap tech stocks like Nvidia are the only ones with the scale to benefit from AI, says Bespoke Investment.
Basically, the mega-caps are soaring, but everyone else? Not so much.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
