In today’s briefing:
- MVIS US Listed Semiconductor 25 Index Rebalance: Chipping Away
- Can AI Stocks Lead the Market to a New Bull?
- From Bottlenecks to Breakthroughs
MVIS US Listed Semiconductor 25 Index Rebalance: Chipping Away
- The upcoming rebalance of the MVIS US Listed Semiconductor 25 Index will be implemented on 16 June. There are no constituent changes, but there are float and capping changes.
- The VanEck Vectors Semiconductor (SMH US) ETF tracks the index and has an AUM of US$9.26bn.
- Estimated one-way turnover is 3.9% resulting in a one-way trade of US$358m. The stocks are extremely liquid, the impact on the stock in terms of ADV to trade is small.
Can AI Stocks Lead the Market to a New Bull?
- Can the AI frenzy, which appears to be in its early stages, carry the stock market to a new bull? An academic study indicates that’s the wrong question to ask.
- The right question is to determine whether we are in an equity bull so that AI stocks can take advantage of the bull trend. Breadth needs to broaden out.
- The other and more conventional explanation of market structure is an unhealthy advance against a backdrop of a market that’s positioning for a recession.
From Bottlenecks to Breakthroughs
- The evolution of the digital age over the last two decades has seen an uninterrupted growth trajectory for the data center market, with demand being driven by increasing storage and computing requirements, as well as the widespread shift from on-premises infrastructure to cloud solutions.
- Developments in software applications and IT have reshaped the way clients interact with data, instigating a significant expansion of data center inventory.
- As the wheel of progress spins inexorably forward, Fortune 500 companies are turning their gaze toward the vast and uncharted frontier of Artificial Intelligence (AI) and its applications.
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