AI stocks have boosted MSCI's World Index gains, with Nvidia leading the pack

From Nasdaq: 2024-06-28 12:56:52

A Citi Research report shows that high AI exposure stocks have boosted the MSCI All Country World Index by 11%, with AI-driven stocks making up only 14% of the index. Nvidia leads the pack, contributing nearly 3% to the index’s return, along with Microsoft, Alphabet, Meta, Amazon, and Apple.

High AI exposure stocks are up 36% year-to-date, outperforming medium exposure stocks. Analysts attribute 22% of the gains in high AI stocks to P/E re-rating, highlighting investors’ belief in premium valuations. Medium AI exposure and non-AI stocks have also seen valuation gains, but to a lesser extent.

According to Wall Street analysts, NVDA stock is the top AI stock to buy, expected to increase by over 27% to $157.86 per share. Interestingly, professional money managers do not share the same sentiment, with only GOOGL stock being favored by them. The discrepancy suggests differing outlooks on AI stocks among industry experts.



Read more at Nasdaq: Citi Research: AI Stocks Have Driven 50% of MSCI’s World Index Gains