Industrial Sector
Total AI adoption (where we all lose jobs, LOL) is thru 2030+ against a $15T total addressable market. So, if you have conviction in a thesis, I’d build a position over 1-2 years DCA each month. That way, the $2k-$10k (whatever) total principal doesn’t feel overwhelming. IMO, we’re at the start of the end for infrastructure adoption on ingest (as companies are running out of data and need synthetic data), hence we move to the next stage of AI adoption (inference & training) which should last 2-5 years for full corporate adoption (directly and through professional services, like PWC or Accenture – look at Accenture stock this past year for this point). The Blackwell chip you’ve been hearing about, is their play into inference (next-phase of AI), and we’ll be done with that by early 2026 in the data centers. Today, the N100’s are only good for INGESTING data, which they have 90% of the market. They needed a new product for inference – all the semiconductor stocks do.
Fidelity’s FTEC Technology ETF: Up 46% since Q4-2022, Up 29% 2024 YTD
Finviz: Fidelity FTEC Technology ETF
Market Sentiment: While there is optimism about the long-term potential of AI and technology stocks, some market participants remain cautious due to potential overvaluation risks.
Future Outlook: The technology sector is expected to continue playing a critical role in market dynamics, but investors are advised to maintain diversified portfolios to mitigate risks associated with potential market corrections.
Top Performers: The broader S&P 500 Index has benefited from the tech sector’s performance, achieving a return of about 22.08% year-to-date.
- Nvidia (NVDA): Nvidia has been a standout performer, with its stock price increasing by over 150% in the first half of 2024. The company has capitalized on the AI boom, particularly in AI chip production, driving significant revenue growth.
- Broadcom (AVGO): Another major winner, Broadcom’s stock rose by approximately 106.04%. The company’s acquisition of VMware and strong sales of AI-related products have contributed to its impressive performance.
- Microsoft (MSFT) & Alphabet (GOOGL): These companies have also seen substantial gains due to their investments in AI technologies and cloud computing services. Microsoft’s stock increased by about 13.55%, while Alphabet saw a rise of approximately 10.74%
Top Losers: Despite the overall positive trend, there have been instances of volatility within the tech sector. In July 2024, the NASDAQ experienced a significant dip due to underwhelming earnings reports from some tech heavyweights like Tesla and Alphabet.
- Name: Fidelity MSCI Information Technology Index ETF
- Category: Technology Sector
- Inception Date: 10-21-2013
- Expense Ratio Fee: 0.08%
- Assets Under Management: $12B AUM
- Holdings: 294 Stocks
| COMPANY | SYMBOL | TOTAL NET ASSETS |
|---|---|---|
| NVIDIA Corporation | NVDA | 15.87% |
| Apple Inc. | AAPL | 15.68% |
| Microsoft Corp. | MSFT | 13.59% |
| Broadcom, Inc. | AVGO | 4.48% |
| Oracle Corporation | ORCL | 1.83% |
| Salesforce, Inc. | CRM | 1.82% |
| Advanced Micro Devices, Inc. | AMD | 1.58% |
| Accenture PLC Class A | ACN | 1.47% |
| Cisco Systems, Inc. | CSCO | 1.47% |
| Adobe Inc. | ADBE | 1.42% |