12/20

AIO Flat as AI Sector Growth and Semiconductor Projections Boost Sentiment

The Virtus Artificial Intelligence & Technology Opportunities Fund (AIO) is experiencing upward momentum, driven by a surge in demand for AI-related technologies and investments. Micron Technology's recent earnings report highlights a 400% increase in data center revenue, largely attributed to the rising demand for AI chips. This growth underscores the broader trend of AI-driven expansion across various sectors, including data intelligence and accounting, as evidenced by Databricks' substantial $10 billion funding round and Basis' $34 million Series A raise. These developments reflect a robust appetite for AI infrastructure and applications, which is positively impacting the technology sector.

Additionally, the semiconductor market is witnessing significant growth, with global sales of semiconductor manufacturing equipment projected to reach $113 billion in 2024. This growth is fueled by strong investments in AI-related sectors, further supporting the positive sentiment around technology and AI-focused funds. The World Semiconductor Trade Statistics organization has also revised its 2024 projections, anticipating a 19% y/y growth in the semiconductor market, driven by improved performance in computing sectors. These factors collectively contribute to the positive outlook for AI and technology investments, bolstering the performance of funds like AIO.

The AIO ETF is currently priced at $23.80, reflecting a 0.68% increase from the previous close.