AI boom drives S&P 500 communication stocks to record highs in 2024

From Seeking Alpha: 2024-07-04 11:41:00

The S&P 500 communication services sector has seen robust growth in 2024, driven by strong earnings and excitement surrounding artificial intelligence. Communication services emerged as the second-best performing segment, with a 26% gain in the first half of the year and hitting 35 new highs.

Investors have been drawn to the Communication Services Select Sector SPDR Fund (XLC), tracking the S&P 500 communication services sector, reaching a high of $87.02 and hitting 31 new highs in the first 6 months of the year. The sector has shown strong momentum, with a 52-week high of $316.15.

The enthusiasm over AI has fueled the performance of mega-cap companies like Google (GOOG) and Meta (META), with Google seeing a 30% gain and Meta recording a 42% jump in the first half of 2024. Communication stocks, including Meta Platforms, Alphabet, News Corp, and T-Mobile US, have hit all-time highs, showcasing the AI craze’s impact on the sector.

Despite the overall positive trend, Paramount Global Class B (PARA) has struggled in the first half of the year, with the stock down 26%. The communication services sector continues to attract investors with its strong performance and promising outlook fueled by the AI trend.



Read more at Seeking Alpha: AI boom pushes four S&P 500 communication stocks to an all-time high in 2024