Artificial intelligence (AI) has been a game changer in the investment world (and many other worlds, for that matter). In fact, one industry insider genuinely thinks it’s “going to be bigger than the internet” or smartphones.
Speaking at the CNBC Delivering Alpha Investor Summit in New York on Thursday, Altimeter Capital Chairman and CEO Brad Gerstner delivered a strong prediction for AI’s impact.
“AI is going to be bigger than the internet, bigger than mobile and bigger than cloud software,” Gerstner said. He added that AI’s ascension is part of a “super-cycle” not unlike the dot-com boom in the late 1990s/early 2000s.
See more: “The Post-hype Golden Age for AI Has Arrived. What’s Next?”
“I’m very optimistic over the course of the next two or three years,” Gerstner added. “Why? Because we’re not going to continue to hike rates, and we’re at the beginning of one of the biggest tech booms in the history of technology.”
Targeting Companies Contributing to Future Software Development
The Invesco AI and Next Gen Software ETF (IGPT) seeks to replicate the performance of the STOXX World AC NexGen Software Development Index. It invests in companies with significant exposure to technologies or products that contribute to future software development.
Top holdings as of September 27 are NVIDIA Corp. (NVDA), Adobe Inc. (ADBE), and Advanced Micro Devices Inc. (AMD). IGPT is up nearly 6% year-to-date as of September 27
IGPT will normally invest at least 90% of its total assets in common stocks that comprise the index. The fund and its index are rebalanced quarterly. The ETF carries a net expense ratio of 0.56%.
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