Need to Know: AI news is driving tech ‘building blocks’ stocks like Nvidia. But another ‘power’ area will also benefit, say these veteran investors

by | May 26, 2023 | Stock Market

Kneel to your king Wall Street. After forecasting record revenue backed by a “killer AI app,” Nvidia helped deliver a powerful performance for the Nasdaq
on Thursday. Indeed, thanks to that chip maker and a few other generals — Microsoft, Apple, Alphabet, etc.— tech is seemingly unstoppable:

Top contributors to S&P 500 year-to-date total return


Our call of the day offers valuable insight on tech investing amid AI mania from a pair of seasoned investors. Inge Heydorn, partner on the GP Bullhound Global Technology Fund and portfolio manager Jenny Hardy, advise choosing companies carefully given high valuations in some parts of tech that could make earnings vulnerable. “But looking slightly beyond the volatility, tech has the advantage of being driven by many long-term secular themes which will continue to play out despite a weaker macro,” Hardy told MarketWatch in follow-up comments to an i …

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