Despite The Market Hype, Only 5% Of US Firms Use Generative AI In Production
Portfolio Pulse from Hayden Buckfire
Despite the market hype around generative AI, only 5% of US firms are using it in production. The SPDR S&P 500 ETF Trust (SPY) has surged over 15% in 2024, driven by a few large tech companies, while the Invesco S&P 500 Equal Weight ETF (RSP) and iShares Russell 2000 ETF (IWM) have seen modest gains.
July 03, 2024 | 5:47 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) has surged over 15% in 2024, driven by a few large tech companies benefiting from generative AI.
The SPY has seen significant gains due to the performance of large tech companies that are leveraging generative AI, despite only 5% of US firms using it.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The iShares Russell 2000 ETF (IWM) is up just 1% year-to-date, reflecting limited impact from generative AI on smaller companies.
IWM's minimal gains suggest that smaller companies are not significantly benefiting from generative AI, unlike larger tech firms.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The Invesco S&P 500 Equal Weight ETF (RSP) is up under 4% in 2024, indicating that gains in the S&P 500 are concentrated in a few large tech companies.
RSP's modest gains indicate that the broader market is not benefiting as much from generative AI as a few large tech companies are.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80