NEW YORK : Recent advances in artificial intelligence are fueling optimism over how businesses can operate more productively in the years ahead. They are also providing a big boost to the stock market.
A recent Societe Generale analysis zeroed in on 20 stocks widely owned by AI-related exchange-traded funds, whose overall assets under management have grown almost 40 per cent this year. The rush of AI developments has analysts licking their lips at the profit potential stemming from new revenue opportunities and productivity improvements.
"We are strongly of the view that AI will change the world," Jim Reid, strategist at Deutsche Bank, said in a note titled,"Will ChatGPT prevent the US recession?" Other factors have supported megacap stocks. Those include a decline in Treasury yields from last year's highs that has soothed concerns over tech valuations and investors viewing megacaps as safety plays in an uncertain environment.