According to Business Insider, the frenzy over artificial intelligence-linked stocks has surged. Michael Hartnett, a currency strategist at Bank of America, supposes that excitement around the sector is mounting.
Against this backdrop, shares of the largest IT companies, such as Nvidia and Microsoft, have rallied, thus causing a rise in the S&P 500 in the first half of 2023.
Analysts at BofA describe the current situation as relatively stable. The fact is that "real rates — nominal interest rates minus the rate of inflation — are too low to pop what Hartnett called the AI baby bubble."
At present, most corporations are focused on the influence of AI technologies on their income. Not so long ago, investors were disappointed by Microsoft’s results. The fact is that the company failed to "live up to lofty hopes about an immediate boost from AI." However, earlier, Microsoft got positive results as AI improved its advertising efficiency.
In this light, BofA strategists recommend betting on emerging markets and commodities over the rest of this summer.
