AI investments will go from 'hot names' to essentials

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The AI trade continues to drive market gains, showing few signs of slowing. Defiance ETFs CEO and CIO Sylvia Jablonski joins Wealth! to offer insights on navigating markets during this AI-driven period.

Jablonski observes that investors currently associate the "Magnificent 7" tech giants with AI. Given this trend, she recommends semiconductor or large-cap ETFs as avenues for gaining exposure to these plays. She also emphasizes the importance of considering ETFs that offer exposure to core AI names and companies involved in AI infrastructure, staples, and hardware.

The Defiance ETFs CEO predicts AI will benefit multiple sectors, from healthcare to driverless vehicles, in the long run. She states, "AI is gonna touch just about everything, so I think we're in the infancy stage, and the infancy stage is... who are the biggest hot names? And that's what people are buying." However, she anticipates a second stage where market focus will shift to companies essential for AI operations.

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This post was written by Angel Smith