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News Topical, Digital Desk : The total value of the 109 stocks included in Goldman Sachs' AI TMT (Technology, Media & Telecom) Index has now crossed $30 trillion. This figure is almost equal to the annual GDP of the US, the world's largest economy. What does this mean? The rapidly growing demand for artificial intelligence has led to a massive rally in tech and telecom stocks. Mega valuation The $30 trillion valuation indicates that the size of just 109 companies has become equal to the entire US economy. Impact on the market The hold of AI and technology sectors has now become stronger in the global equity markets.
Why is it important? AI and tech companies are now the biggest attraction for global investment. Investor confidence - This Goldman Sachs index indicates strong investor confidence in AI. The global balance could shift - As the market cap of these companies approaches GDP levels, their policies and technology will further impact the global economy.
The Goldman Sachs AI TMT Index: Excellent returns, but high volatility.
The index returned approximately 37% in the first half of 2025. AI stocks saw a 20% decline in January 2025, but recovered sharply in Q2. Software, semiconductor, and data center infrastructure companies performed well. Experts believe the AI sector will remain strong in the long term, although quarterly fluctuations are common.
2. Volatility – A 25% decline in Q1 and a 37% increase in Q2 at the beginning of 2025 explained the index's volatility. Volatility was attributed to shifting capital investments by tech companies, global trade tensions, ambiguity in AI investment plans, and, like the tech and AI sectors, the index also maintains a high risk-high return profile. The
index performed well in the first half of 2025. Volatility is present, but it is manageable and considered normal for the sector. The index remains attractive to long-term investors, but it is important to consider fluctuations when formulating a strategy. 4. Index Structure and Top Holdings – It includes 109 companies with a combined value of approximately $30 trillion, equivalent to the annual GDP of the United States. The index represents AI-focused companies in the technology, media, and telecom (TMT) sector. Top 10 Holdings (37% weightage): Apple Microsoft NVIDIA Alphabet Amazon Meta Cisco Intel IBM Qualcomm.
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