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Bank of America data shows that these 9 AI plays are core holdings for investors.



The rise of artificial intelligence-related stocks has caught the attention of fund managers, who are now increasingly adding these tech companies to their portfolios. Bank of America’s analysis reveals that 9 out of 10 stocks that have seen the largest increase in ownership breadth over the past year are tied to the AI boom. This trend signals a shift in the investment landscape as AI stocks are now considered core holdings by many funds. Among the top stocks in fund managers’ portfolios are chipmakers like Broadcom, Arista Networks, Applied Materials, and Nvidia.

Broadcom, in particular, saw the biggest increase in fund ownership over the past year, with 45% of active managers now holding the stock. The company’s positive guidance, which anticipates $10 billion in revenue from AI chips this year, has contributed to its popularity among investors. Nvidia, another chipmaker on the list, has been a standout performer in the AI space as its sales have surged due to high demand for its graphics processing units from companies like OpenAI and Microsoft. The company’s shares have doubled in value in 2024, further boosting its appeal among fund managers.

Aside from chipmakers, other AI-related stocks that have gained traction among active fund managers include Meta Platforms, Uber Technologies, Netflix, and ServiceNow. The increased ownership of these stocks by fund managers has been linked to the growing prevalence of “AI” mentions on earnings calls. This suggests that companies actively involved in AI research and development are becoming more attractive to investors who are looking to capitalize on the potential growth opportunities in the sector.

The rise of AI-related stocks in fund managers’ portfolios also reflects the broader trend of technological innovation shaping the investment landscape. As AI continues to revolutionize various industries, companies that are at the forefront of this technology are increasingly viewed as lucrative investment opportunities. The strong performance of companies like Nvidia, which have positioned themselves as leaders in the AI space, further underscores the potential for significant returns for investors who are willing to bet on this emerging trend.

In light of the growing interest in AI-related stocks, it is evident that fund managers are recognizing the value of investing in companies that are driving innovation in this sector. As AI technology continues to advance and disrupt traditional industries, the companies that are best positioned to capitalize on this trend are likely to see continued growth and success. By including AI-related stocks in their portfolios, fund managers are not only seeking to generate returns for their investors but also positioning themselves to benefit from the ongoing transformation of the global economy driven by artificial intelligence.

Overall, the increased ownership of AI-related stocks by fund managers underscores the growing importance of this technology in the investment landscape. As companies continue to leverage AI to drive innovation and improve efficiency, investors are increasingly turning their attention to opportunities in this space. With the potential for significant growth and returns, AI-related stocks have become essential holdings in many fund managers’ portfolios, signaling a broader shift towards investing in companies at the forefront of technological innovation.

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