In another potential positive for artificial intelligence-related companies dwelling in QQQ and QQQM, the CNBC surveyed revealed that the top concern among tech executives is providing customers with access to new technology. AI undoubtedly fits that bill, underscoring the point that there is credibility to artificial intelligence spending trends.
Speaking of credibility, as valuations on some AI equities, namely Nvidia, have soared, some market participants have likened the recent AI boom to the bursting of the tech bubble in 2000. However, some analysts say that comparison doesn’t mesh because many companies that didn’t survive the tech bubble had suspect business models and flimsy balance sheets. The opposite is true of the bulk of the AI-related stocks that call QQQ and QQQM home. Other fundamentals bode well for Nvidia.
“Nvidia became the most valuable company in the market this week, Bank of America says gen AI is just in the second year of a three to five year deployment cycle, with hardware demand forecast to triple to $300 billion — up from $100 billion this year, with 80% of that going to Nvidia,” noted CNBC.
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