The momentum of tech stocks don’t appear to be waning as the hype around artificial intelligence (AI) continues to garner investor interest. Given that, Direxion Investments has three leveraged ETFs to capture the ongoing upside.
The trading week ending June 7 saw more inflows into technology stocks as AI continues to take center stage heading into the summer. With Apple announcing its AI capabilities last week, inflows should likely continue.
“U.S. technology stocks just posted their largest weekly inflows in nine weeks, with the sector seeing a comeback after its megacap-led rally lost steam by the end of May,” a MarketWatch report noted.
Traders who want to continue riding the momentum can use the Direxion Daily Technology Bull 3X ETF (TECL) that has triple the exposure to the Technology Select Sector Index. The index includes domestic companies from the technology sector that includes the following industries: computers and peripherals; software; diversified telecommunications services; communications equipment; semiconductors and semiconductor equipment; internet software and services; IT services; electronic equipment, instruments and components; wireless telecommunication services; and office electronics.
Additional Tech Plays
As opposed to getting broad tech exposure, investors can specifically zero in on the growth of AI. They can do so with double the leverage using the Direxion Daily AI and Big Data Bull 2X Shares (AIBU) that tracks the Solactive US AI & Big Data Index that represents companies that have business operations in the field of AI applications and big data.
With AI capabilities growing, it will need the perfunctory hardware to run its applications. Undeniably, one the companies at the forefront of semiconductor success for AI use is Nvidia. This is especially the case if the AI theme continues to strengthen as the disruptive technology continues to exhibit growth in a variety of industries.
“With Nvidia’s growth looking unlikely to slow down, according to analysts, keeping an eye on where it spends its money could be lucrative,” noted Investorplace.
Given this, traders can use the Direxion Daily Semiconductor Bull and Bear 3X Shares (SOXL). The fund tracks the largest movers and shakers within the industry. SOXL seeks daily investment results equal to 300% of the daily performance of the NYSE Semiconductor Index. That index is a rules-based, modified float-adjusted market-capitalization-weighted index that tracks the performance of the 30 largest U.S.-listed semiconductor companies.
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