Fund Manager Bets On AI W/ Nvidia, MSFT, Not Apple, Alphabet

A fund from Franklin Templeton is doing well. It's doing better than 96% of similar funds. The fund made big investments in artificial intelligence.

According to Bloomberg, Nvidia, ASML Holding, and Microsoft are some of the top companies in the fund.

The fund is not investing in technology companies such as Apple, Alphabet, Meta and Netflix.

A money handler discovered that investing heavily in AI stocks and steering away from other Big Tech firms has led to success in surpassing the market's performance.

Franklin Templeton's FTGF Martin Currie Global Long-Term Unconstrained Fund is doing well this year. Bloomberg says it's doing better than 96% of other similar funds. The fund is worth $158 million.

The gain is 15%. It's higher than the MSCI All-Country World Index, which is a benchmark for equity funds. The MSCI gained 8%.

The fund has major investments in Nvidia, which makes AI chips. It also invests in Microsoft, which is involved with OpenAI (parent of ChatGPT). Another big investment is ASML Holding, a company based in the Netherlands that produces semiconductors.

Fund manager Zehrid Osmani says tech is still attractive. He thinks the Federal Reserve won't hike rates anymore but won't cut them either. He suggests looking at different segments instead of investing in Big Tech as a whole.

The fund is not investing in big tech companies like Apple, Alphabet, Meta, and Netflix. Alphabet is working on their own AI technology, but these stocks are risky for consumers.

Lots of people in the finance world are excited about AI. That includes big-shot investors like Stanley Druckenmiller, Bill Ackman, and David Tepper. They're all putting money towards the trend.

Morgan Stanley thinks AI will create a $6 trillion investing boom. Bank of America says AI will boost the economy by $15.7 trillion in seven years. They're calling it an "iPhone moment."

Osmani isn't putting money into the banking sector. Other people, like Michael Burry, are buying stocks from regional lenders. These lenders lost lots of value after the collapse of SVB.

Osmani said to Bloomberg that the banking business is under heavy competition. It's simple to join the business as a new player. With little pricing advantage, the industry is facing considerable disruption risk. He added that things don't seem attractive for this industry in terms of its dynamics.

Check out the original post on Business Insider. Free English version: Read the Blog on Business Insider.