Artificial Intelligence Wave: What's Happening in the US Stock Market?

Rapidly Rising Valuations in Artificial Intelligence Stocks

In the U.S. stock markets, particularly the valuations of stocks related to artificial intelligence have seen a noticeable increase recently. It is essential for investors to develop alternative strategies in response to this rapid rise.

S&P 500 and the Artificial Intelligence Theme

Adam Parker, the founder of investment research firm Trivariate Research, notes that technology and artificial intelligence firms have gained significant weight within the S&P 500 index. Parker expresses that this situation reminds investors of the necessity to diversify beyond the artificial intelligence sector. The enthusiasm generated by artificial intelligence-related investments enabled the S&P 500 to close with a 1.07% increase. However, some experts warn that these rapid increases could raise concerns about a bubble.

Rational Bubble?

Mohamed El-Erian, Chief Economic Advisor at Allianz, acknowledges the importance of artificial intelligence in increasing productivity but points out that many companies are receiving excessive investments. El-Erian warns that “as a result, there will only be a few winners,” highlighting the potential for disappointments.

Parker's Vision for the Future

Parker presents an optimistic outlook for the next three to six months, thanks to productivity gains from artificial intelligence and the Federal Reserve's stance on interest rate cuts. While comparisons are made with the dotcom bubble, he emphasizes that the current valuations of technology giants are not at the extreme levels seen during 1999-2000.

Diversity and Long-Term Investment Strategies

Parker recommends increasing diversification strategies by focusing on stocks with low correlation. Stocks that have gained at least 10% in value over the last six months and have lower volatility than the market average should be the criteria for investors' focus. In this context, companies such as Walmart, Netflix, and Welltower stand out.

Walmart and Artificial Intelligence Integration

Walmart is working to optimize the shopping experience by effectively using artificial intelligence in its business processes. The company announced that shopping can be done directly through OpenAI's ChatGPT platform. With this development, Walmart's shares have increased by 18% since the beginning of the year.

Netflix and Popular Content

As Netflix prepares to announce its quarterly earnings, the impact of the production “K-Pop Demon Hunters” on results draws attention. Despite previous negative news, its shares have gained 40% in value.

Welltower and the Elder Care Sector

Welltower, a real estate investment trust with resources like elder care centers, has shown an increase of more than 40%. According to Bank of America’s forecasts, profit margins for elder care real estate investment trusts are expected to reach record levels by 2028.