According to a recent survey, 77% of the 514 respondents are planning to increase their exposure to technology stocks or maintain their current investments over the next six months.
The Great Tech Rally of 2023 has captured the attention of investors worldwide, who are showing confidence in the sector’s continued growth. However, the same level of optimism is not extended to the artificial intelligence (AI) industry, as survey respondents express skepticism about its potential.
Investors Stay Bullish on Tech Stocks
According to a recent survey, 77% of the 514 respondents are planning to increase their exposure to technology stocks or maintain their current investments over the next six months. The Nasdaq 100 has witnessed remarkable gains, soaring more than 40% year-to-date, driven by leading companies like Apple Inc. and Microsoft Corp.
AI’s Struggle to Meet Expectations
While technology stocks enjoy a booming market, AI seems to face a more challenging path. Respondents remain cautious about the AI-fueled market melt-up, as only half of them are willing to invest in AI tools to enhance personal or business life. Moreover, the majority of firms do not plan to use AI for trading or investment purposes in the near future.
AI: Practical Applications or Hype?
Unlike the speculative nature of the dot-com bubble in the 2000s, AI is not entirely built on expectations. Practical applications are already in progress, though still in the early stages. Companies like Microsoft and Alphabet Inc. are actively integrating AI features into their products, seeking to boost productivity and efficiency for corporate clients.
Nvidia Corp. Shines as AI Champion
Nvidia Corp. stands out as a prominent player in the AI arena, with its processors powering various AI applications. The company’s stock has rallied over 200% this year, making it the first trillion-dollar chipmaker. Respondents believe it may soon ascend to become one of the world’s top companies.
AI’s Impact on the Workplace
While AI gains traction in the corporate world, respondents do not believe that the technology will significantly alter core aspects of their jobs in the next three years. Nevertheless, economists at Goldman Sachs Group Inc. estimate that AI could impact seven out of ten US workers, but only a minority of them would face job replacements due to new technologies.
AI: Productivity Boon for the US Economy
Ed Yardeni, President at Yardeni Research, foresees the US economy booming on the back of AI, robotics, and quantum computing. With oncoming advances in these technologies, there is a “reasonable” chance of significant productivity gains.
Investors Keep a Close Eye on Tech and AI
As the tech rally continues and AI expands its presence in various industries, investors maintain a keen interest in both sectors. The MLIV Pulse survey provides valuable insights into market sentiments, revealing investors’ expectations and reservations about the future of technology and AI.
The Future of Work: Unlimited Paid Time Off (PTO)
In addition to technology and AI, this week’s MLIV Pulse survey addresses the potential impact of unlimited Paid Time Off (PTO) on companies and the future of work. Respondents are encouraged to share their views on this evolving workplace trend.
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