Artificial Intelligence (AI) Stocks Fueled Market Gains in the First Half. Is the Best Yet to Come?
The S&P 500 entered a bull market earlier this year when it reached a record high, but it hasn't stopped there. The benchmark continued to hit new highs in the months that followed and now has finished the first half with a double-digit gain. Though stocks across industries have benefited from renewed optimism in the market, one industry in particular has led the movement.
I'm talking about technology stocks that are heavily focused on artificial intelligence (AI). In the first five months of the year, the four biggest contributors to the S&P 500's gains were major players in AI. Why are investors so eager to get in on the story? Because this technology has the potential to transform companies' operations, making them more efficient so that earnings may eventually soar. These players can benefit from AI over time -- and companies selling tools to make AI happen are already seeing revenue growth today.
So, AI stocks fueled market gains in the first half. But considering the long-term opportunity here, is the best yet to come? Let's find out.
Source Fool.com
