Summarize this content to 2000 words in 6 paragraphs in Arabic Stay informed with free updatesSimply sign up to the US equities myFT Digest — delivered directly to your inbox.Most of the stocks that were caught up in last year\u2019s hype around artificial intelligence have fallen this year, suggesting that investors are increasingly trying to separate the wheat from the chaff among companies claiming to be beneficiaries of the AI trend.Massive share price rallies for high-profile groups such as Nvidia, the chip designer that this week became the world\u2019s most valuable listed company, have spurred a growing debate about whether the US stock market is being driven by speculative hype.But the recent declines for dozens of stocks that had benefited from the early enthusiasm suggest that investors are starting to look past optimistic commentary if the companies cannot back up their claims.\u201cAI is still a big theme but if you can\u2019t demonstrate evidence you\u2019re getting hurt,\u201d said Stuart Kaiser, head of US equity trading strategy at Citi. \u201cJust saying \u2018AI\u2019 15 times is not going to cut it any more.\u201dAbout 60 per cent of stocks in the S&P 500 have risen this year, but more than half the stocks included in Citi\u2019s \u201cAI Winners Basket\u201d \u2014 an index based on the names that were garnering the most excitement among the bank\u2019s clients last year \u2014 have declined. More than three-quarters of companies in the AI basket had climbed in 2023.Investment funds that tried to pick a wide spread of AI beneficiaries have had a similar experience. More than half of the individual stocks in BlackRock\u2019s Robotics and Artificial Intelligence ETF, Invesco\u2019s AI and Next Gen Software fund, and First Trust and Nasdaq\u2019s Artificial Intelligence and Robotics ETF have declined this year.Mona Mahajan, senior investment strategist at Edward Jones, said: \u201cInvestors are looking a bit more at the earnings story among \u2018AI\u2019 names. The differentiator with something like an Nvidia is they have delivered on the bottom line, showing real data.\u201dNvidia has more than doubled in value this year, after more than tripling in 2023, and its market cap is now well over $3tn. However, the massive demand for its graphics processing units is such that, measured as a multiple of its sales over the previous 12 months, the stock is actually cheaper than this time last year.\u00a0In contrast, tech groups such as Salesforce, Snowflake, Intel and Adobe \u2014 now far smaller than Nvidia by market value, but classed as large-cap stocks \u2014 have fallen sharply after strong gains in 2023. \u201cIn tech the bar was quite high [in earnings season] and if you missed that bar you got hit hard,\u201d said Citi\u2019s Kaiser. Salesforce suffered its worst one-day drop in 20 years after publishing a disappointing quarterly update last month. Although some have taken the shift as a sign of rationality returning, Rob Arnott, chair of asset manager Research Affiliates, said the AI-linked rally still \u201chas the look to me of a classic bubble\u201d.\u201cOne of the things about a classic bubble is you do see smaller players fade before big ones start to suffer,\u201d he said.Arnott stressed that he was a believer in the long-term impact of AI, but said \u201ca lot of the benefits are going to come gradually, and the market is pricing in immediacy\u201d.Video: AI: a blessing or curse for humanity? | FT Tech<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Stay informed with free updatesSimply sign up to the US equities myFT Digest — delivered directly to your inbox.Most of the stocks that were caught up in last year\u2019s hype around artificial intelligence have fallen this year, suggesting that investors are increasingly trying to<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-130541","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/130541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=130541"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/130541\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=130541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=130541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=130541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}