AI Surge Ending: Only One Category Was Up This Week

Photo by Steve Johnson on Unsplash

An Introduction

Recent articles here have suggested that the AI sector was weakening, and that was clearly evident in the results of March and confirmed this week. The Global X Artificial Intelligence & Technology ETF (AIQ) of 91 constituents - which best reflects the AI sector as a whole - had gone up 8.4% in February but was only up 2.0% in March. This week, however, it was down 0.1%. On a specific category basis, while none of the 7 categories covered by munKNEE.com went down in February, 3 did so in March and this week 6 of the 7 did so. This confirms my conclusion that the data clearly indicates that the surge in this sector is stalling or perhaps even over.

7 AI Categories Compared

Below is how each category performed this week in comparison to each other to help you make prudent investment decisions going forward. The categories are presented with data:

  • for this week, in descending order,
  • YTD to provide a short-term trend in each category,
  • along with a description of what makes up each category,
  • the stocks included in each category,
  • those stocks in each category that went up the most during the week, and the least
  • and commentary on those stocks that made significant moves this week, where available.
  1. AI-enabled Personal Computer Category: up 2.7% this week; up 19.8% YTD
    • Description: A computing revolution is beginning as a result of the introduction of neural processing units in the latest chip designs which will result in a coming decade of growth in PC upgrades and innovation. This portfolio tracks the stock performances of the companies that have introduced, or plan to introduce, AI-enabled PCs in 2024.
    • 4 Constituents: DELL (+16.3%), MSI (0.8%), HPQ (-3.6%) and LNVGY (-4.1%).
    • Article:
  2. Custom Design EDA Software Category: down 0.4% this week; up 6.6% YTD
    • Description: The stock prices of electronic design automation (EDA) software companies creating custom designed chips is set to take off given a projected 11% CAGR in the category between now and 2028. This portfolio tracks the stock price changes of 3 companies in this category.
    •  3 Constituents: SNPS (+0.7%) which is acquiring ANSS, CDNS (-1.0%) and ANSS (-1.5%) .
    • Article:
  3. Semiconductor (Chip) Category: down 0.7% this week; up 24.7% YTD
  4. Cloud Computing Software Category: down 2.1% this week; up 3.0% YTD
  5. Quantum Computing Category: down 2.3% this week; up 6.1% YTD
  6. Cybersecurity Software Category: down 2.4% this week; up 1.8% YTD
  7. AI-Powered Drug Discovery Category: down 6.3% this week; up 15.2% YTD

The AIQ Global X Artificial Intelligence & Technology ETF (AIQ) of 91 constituents went down 0.1% this week but is still up 8.8% YTD.


More By This Author:

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Disclosure: None

This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...

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