From NASDAQ: 2024-04-29 05:12:00

Nvidia’s stock has surged 45,900% in the last 20 years, with shares tripling in the past year due to investor interest in artificial intelligence. However, concerns about valuation have some analysts predicting a decline. Hedge fund billionaires have been selling off some Nvidia shares while increasing their stakes in the Invesco QQQ Trust, an index fund that tracks the Nasdaq-100.

The Invesco QQQ Trust offers exposure to tech stocks poised to benefit from AI, with top holdings including Microsoft, Apple, and Nvidia. While not strictly an AI fund, companies like Amazon, Tesla, and Broadcom are well positioned to capitalize on AI growth. The index fund returned 1,260% over the last two decades, outperforming the S&P 500.

Investing in the Invesco QQQ Trust may be worthwhile for those seeking to capitalize on the AI boom, but the fund’s high volatility can impact performance during market downturns. The heavy tech sector weighting has proven beneficial as disruptive technologies like mobile devices and cloud computing have flourished. It’s a suitable option for those with high risk tolerance and a long-term investment horizon.



Read more at NASDAQ: Billionaires Are Selling Nvidia Stock and Buying This Supercharged AI Index Fund Instead