The heightened interest in artificial intelligence has helped the big tech comeback. Will the story continue heading into 2024? Some market experts foresee a continuation of interest in the AI theme.
AI is already causing a stir ahead of the 2024 Consumer Electronics Show (CES) in Las Negas. The use of AI is already permeating various business sectors. Its use in consumer electronics will only expand.
“Well, everybody’s going to talk about it, right? I mean, it’s almost become a joke now at tech conferences if you don’t mention generative AI like 10 times in the first two minutes. And so we’re going to see everybody talk about it,” said Bob O’Donnell, TECHnalysis research president and chief analyst.
“How it plays out at CES is going to be interesting,” he added. “Because in it, I believe we’re going to see more of an impact initially in business than we are consumer.
Given AI’s growing interest and usage, traders can consider using the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT). The fund seeks daily investment results that equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. That index aims to provide exposure to companies in developed markets expected to benefit from the growing adoption and use of robotics and/or AI.
Nvidia’s AI Influence
Nvidia comprises about 15% of UBOT’s holdings as of September 30. That’s warranted because of the company’s crucial role in developing chips that can power AI applications. The company plans to expands its market share alongside AI’s growth. That will pay dividends for UBOT if its stock price continues exhibiting upside into 2024.
“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia, during its Q3 earnings results.
“Large language model startups, consumer internet companies and global cloud service providers were the first movers. And the next waves are starting to build,” he added. “Nations and regional CSPs are investing in AI clouds to serve local demand. Enterprise software companies are adding AI copilots and assistants to their platforms. Enterprises are creating custom AI to automate the world’s largest industries.”
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