As of Nov 3rd, $32 TRILLION in market value had been added to the S&P 500 since OpenAI released ChatGPT, and more than 1/2 of that gain came from just 10 companies, all linked to AI according to Bloomberg.
Approximately 44% of US pension fund holdings or $610B are now tied up in technology sector which now accounts for almost 1/2 the value of the S&P 500 Index.
On its own, Nvidia recently accounted for 8% of the S&P 500, while Amazon, Alphabet, Meta and Tesla had a combined weighting of 15%.
The tech ‘rout’ on Thursday was almost inevitable and the AI bubble for the most part deflated with most of the AI stocks down significantly since their summer highs.
The sell-off was a classic example of when everyone tried to rush out of the tech door at the same time.
The AI revolution is not over but the easy money in AI is, as investors start to pay attention to quality of earnings and strength of balance sheets.
Many high-quality AI companies also sold off, presenting an excellent opportunity for investors like us that buy growth at a reasonable price.
Remember, the market is a voting machine in the short term and a weighing machine in the long term.e market giveth, and the market taketh.
As of Nov 3rd, $32 TRILLION in market value had been added to the S&P 500 since OpenAI released ChatGPT, and more than 1/2 of that gain came from just 10 companies, all linked to AI according to Bloomberg.
Approximately 44% of US pension fund holdings or $610B are now tied up in technology sector which now accounts for almost 1/2 the value of the S&P 500 Index.
On its own, Nvidia recently accounted for 8% of the S&P 500, while Amazon, Alphabet, Meta and Tesla had a combined weighting of 15%.
The tech ‘rout’ on Thursday was almost inevitable and the AI bubble for the most part deflated with most of the AI stocks down significantly since their summer highs.
The sell-off was a classic example of when everyone tried to rush out of the tech door at the same time.
The AI revolution is not over but the easy money in AI is, as investors start to pay attention to quality of earnings and strength of balance sheets.
Many high-quality AI companies also sold off, presenting an excellent opportunity for investors like us that buy growth at a reasonable price.
Remember, the market is a voting machine in the short term and a weighing machine in the long term.