The artificial intelligence (AI) sector is experiencing an investment boom, particularly in AI-themed ETFs, driven by the strong market performance of companies such as Nvidia Corp (NASDAQ:NVDA).
What Happened: The total value of AI-themed ETFs traded in the U.S. has risen to $6.88 billion as of February end, a significant increase from $2.55 billion a year ago, according to Morningstar data, Reuters reported on Tuesday. These funds encompass everything from top AI performers to more specialized themes such as robotics and sound generation.
Will Rhind, CEO of GraniteShares, noted that investors are still exploring the potential of this emerging category.
“It’s still so early in the evolution of this category … that investors are still sorting through the possibilities,”
The current enthusiasm for AI funds is reminiscent of previous investor interest in transformative technologies like dot-com stocks and electric vehicles.
Despite the historical trend of stock price declines following market booms, investors are currently showing strong interest in AI. Nvidia, known for its high-quality AI chips, remains a major focus.
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