In the Terminator movie franchise, the third installment was titled Terminator 3: Rise of the Machines
and continued the original movie’s theme of how the growth of
Artificial Intelligence (AI) would ultimately lead to the end of
civilization, as AI would discover that it no longer had need of humans.
Fortunately, as AI is still in its infancy, the stock market is pricing
in only the positive aspects of the technology. While graphic chips
provider Nvidia (up 82% in Q1) has served as the poster child for
Artificial Intelligence investments, many other technology companies
(such as Super Micro Computer – up 255% in Q1) with some connection, or
perceived connection, to AI rallied strongly in the first quarter. This
led to an overall positive market sentiment throughout the period that
lifted the S&P 500 and the NASDAQ 100 higher.
Ultimately, we believe the most powerful trend in AI will be the
productivity enhancements experienced by many companies across a wide
swath of industries. Read more about our thoughts on market trends and our look ahead to the remainder of 2024.