Citi Quants Say the AI-Driven Tech Rally Has Legs
- Growth stocks have more tailwinds than risks in June: Citi
- JPMorgan’s Kolanovic also positive on tech this year
AI-driven gains have boosted Nvidia Corp. to a $1 trillion market value.
Photographer: I-Hwa Cheng/BloombergThis article is for subscribers only.
The roaring rally in tech stocks has further to go, as the buzz around artificial intelligence and hopes for a pause in the Federal Reserve’s rate hikes give them an edge, according to Citigroup Inc. quantitative strategists.
The growth style investing factor in the US has by far been the most successful with a nearly 20% jump this year, as AI-driven gains boosted Nvidia Corp. to a $1 trillion market value and drove a record outperformance of tech stocks against non-tech S&P 500 companies. That aside, an unpredictable economic outlook means that US technology stocks may rise even more.