From Nasdaq:

Money managers are capitalizing on the stock market’s interest in artificial intelligence following Nvidia’s stunning rally, which has seen its shares up about 60% this year. Wall Street is now on the hunt for other AI-focused companies, with AI technology set to enhance productivity growth, according to Goldman Sachs and Morgan Stanley.

Investors excited about AI have helped push the Nasdaq and S&P 500 to record highs this year. Mentions of AI on conference calls hit a high in the fourth quarter as companies look to adopt the technology to boost their top and bottom lines. Financial analysts estimate AI could add 1.5 percentage points to U.S. productivity growth over the next decade.

F/m Investments’ Large Cap Focused Fund, led by Francisco Bido, has expanded its AI holdings beyond Nvidia to include companies like AMD and MongoDB. While these stocks have seen less dramatic gains than Nvidia, companies like Super Micro Computer and ARM Holding have seen substantial increases in their stock prices this year.

Spear Invest’s Spear Alpha ETF has maintained its Nvidia holding but has also invested in companies like Zscaler and Snowflake to capitalize on growing cybersecurity and data infrastructure needs related to AI. Despite the potentially volatile nature of AI-related stocks, investors are still seeing opportunities in the market.

Baker Avenue Wealth Management has reduced its Nvidia holdings and started building a position in Taiwan Semiconductor, a key supplier to Nvidia. Research Affiliates is eyeing reasonably valued semiconductor companies like Lam Research and Micron Technology that could benefit from AI, emphasizing the need for storage in addition to processing for large language models.

Some investors, like Martin Currie US Unconstrained Fund, are sticking with significant positions in Nvidia due to the company’s competitive advantages in research and development spending. Portfolio manager Zehrid Osmani believes Nvidia will maintain its edge in the AI space, leading the fund to express high conviction in the stock.



Read more at Nasdaq: ANALYSIS-Wall Street hunts for more AI gold after Nvidia’s soaring rally