There are always fads in the stock market, but now we are in the midst of what could turn out to be a revolutionary trend that will last much longer than any fad — artificial intelligence. In the Need to Know column on Feb. 9, Edward Stanley, who leads a team of strategists at Morgan Stanley, was quoted calling AI the real deal: “Generative AI, now popularized by ChatGPT, is showing all the usual hallmarks of hype,” he wrote. But then he added that “something suggests the AI hype is worth considering seriously,” calling it “the fastest platform to a million users and fastest to 100 million site views.”
Stanley called generative AI a “serious contender” for “tech diffusion with real market impact potential.”An AI stock screen When screening companies by business focus, it helps to have an industry label, such as “semiconductors.” Such isn’t the case for AI. One easy way to jump on the trend bandwagon would be to purchase shares of Microsoft Corp.
which provided $1 billion in funding for OpenAI when it began to develop ChatGPT, and is now ponying up billions more. Microsoft has been demonstrating how it will integrate ChatGPT with its Bing search engine. Related: Google’s stock dips on demonstration of its AI chatbot, Bard For a new screen of AI-related stocks, we began by looking at the holdings of five exchange-traded funds with AI in their names:
The Global X Robotics & Artificial Intelligence ETF
holds 42 stocks. It tracks an index of companies listed in developed markets. The companies are expected to benefit from the increased utilization of robotics and artificial intelligence. The fund is weighted by market capitalization; its largest holding is Nvidia Corp.
which makes up 9.6% of its portfolio. It is the largest ETF listed here with $1.6 billion in assets under management. It was established September 2016.
The iShares Robotics and Artificial Intelligence Multisector ETF
holds 119 stocks that are equal-weighted, as it tracks a global index of companies that derive at east 50% of revenue from robotics or AI, or have significant ex …