QQQ 0.00 has been on a tear lately and has returned ~7% in a month and ~36% YTD. However, most of the return is from the “Magnificent Seven”: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla. These top seven Nasdaq 100 components who are currently leading the AI development are up $3.35 trillion this year, while the bottom 93 are up only $635 billion. In essence, if you didn’t buy into QQQ or any of the 7 stocks, your investment return will be mediocre this year. But we live in the explosive age of AI so this is not really surprising. The question is how long this AI rally could last. In the long run, I believe AI won’t be dominated by the big tech but open-sourced models running on cheap hardware. It will take some time to get there just as it took a while for the Linux operating system to dominate the server market while the Sun Microsystems faded after years of dominance.
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