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HomeBusinessTechnology Stocks Soar in 2023: AI Sector Momentum Sparks Record Half-Year Performance

Technology Stocks Soar in 2023: AI Sector Momentum Sparks Record Half-Year Performance




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Technology Stocks Soar in First Half of 2023

Rally in the AI Sector

No one could have predicted the rally that took place in the first half of 2023 for technology stocks, supported by rising momentum in the AI ​​sector. The Nasdaq Composite rose 31.7%, posting its best half-year performance since 1983.

Electronic chip stocks Nvidia and Meta rose 190% and 139% respectively. At the same time, shares of Microsoft and Alfavit grew by 35% each.

Apple Reaches $3 Trillion Market Value

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And the market value of Apple, which recently unveiled its mixed reality headset, topped $3 trillion on Friday.

Missed Opportunities and Future Volatility

Despite this growing momentum, there are those who did not enter this market and thus missed this rally and are now confused.

In this context, Gene Zelagi, “Toggle AI” expert, told CNBC that the AI ​​sector is still at a very early stage. This sector is expected to be very volatile in the future.

Bet on Nvidia

Nvidia made headlines on Wall Street this year as the chip company struck a slew of artificial intelligence deals and projects, especially on the Big Language Model, with the company’s stock posting the biggest gain of the year and entering the trillion club dollars.

Regardless of how AI evolves, many investors see Nvidia as the biggest beneficiary. Shares rose 24% on a trading day in May as the company offered an optimistic view of the company’s growth, supported by rising demand for artificial intelligence chips.

In this context, markets are pricing a target price that is 8% above the closing levels of the last session of the first half of 2023 to add this increase to the 190% gain in the first six months of the year.

“We expect positive results in the second half of the year,” said Sylvia Jablonsky, CEO of Defiance ETF. “There is a reason to keep working in these companies, getting more from stocks than you can make in cash, but I don’t think Nvidia stock can rise again. 100%”.

On the other hand, Independent Solutions Wealth Management portfolio manager Paul Mix believes every tech portfolio manager should have access to Nvidia stock.

According to Mix, an investor who wants to find a cheaper way to access the AI ​​sector should consider investing in Advanced Micro Devices, as its shares are up 76% in the first half of the year.

As for the head of Mahoney Asset Management, Ken Mahoney, in turn, he says: “For those who are wary of Nvidia stocks, Microsoft stocks are a safer way to invest in the artificial intelligence sector, given the company’s presence in many technology sectors, including industry, cloud computing and software.

Shares of Microsoft, which supports Open IE and also has the ChatGPT platform, are up 42% in six months of the year.

Investment Opportunities Outside the Tech Sector

While the tech sector recorded the best investment performance in 2023 due to growing interest in artificial intelligence, some investors believe that investment opportunities in the second half of the year are not in the tech sector.

In this context, Jordan Stewart, portfolio manager at Federated Hermes, expects biotech and healthcare stocks to also benefit from artificial intelligence, which will allow drug developers to cut research and development costs and possibly bring drugs to market faster.

It can also help doctors with treatment plans. He believes AI will play a positive role in the weight loss drug market, dominated by companies such as Eli Lilly’s Mongaro and Novo Nordisk’s Ozambique, where new technologies will help personalize doses and control patient response.

Although Stewart declined to offer specific stocks for investment, there are several pharmaceutical companies that are already using AI today. Insilico Medicine, a Hong Kong-based biotech company, this week began human clinical trials of a drug that uses artificial intelligence to design and target targets.


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