Alphaville has already highlighted how AI geeks helped the U.S. stock market rise in 2023. SocGen now claims that even these estimates underestimate the impact.
Analysts at a French bank said the S&P 500 would now be at a 2 percent decrease This year instead of an 8% increase.
It’s not immediately clear from the notes how SocGen categorizes the “AI boom stocks”, but it is speculated that this includes Nvidia, Microsoft, SalesForce, Alphabet, and more. Below is Manish Kabra from SocGen and our focus is on:
The AI boom and hype are powerful. Without AI favorites, the S&P 500 is doing well, down 2% this year. Not +8%.
The latest information on the AI sentiment news indicator continues to rise exponentially, even longer than when we first talked about it a few weeks ago.
The AI theme has been with us for some time, and last year we proposed SG Robotics and AI Equity as long-term themes. It’s hard to counter such strong hype in a short period of time.
We don’t want to sound like Luddites, but . .
References:
— This terribly vulnerable narrow bad rally
— ChatGPT market shock
