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CITI SAYS IT’S TIME TO BOOK PROFITS IN HIGH-FLYING AI EQUITIES

 * Sentiment around AI-exposed stocks is the highest since 2019
 * Strategists suggest moving exposure to broader AI value chain

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Nvidia briefly became the world’s most valuable company this year.

Photographer: Ian Maule/Bloomberg
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By Sagarika Jaisinghani
July 9, 2024 at 10:57 AM GMT+2
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The rally in artificial-intelligence stocks may show little sign of flagging,
but a historical review suggests it’s time to take profit in the biggest names,
according to strategists at Citigroup Inc.

Sentiment toward AI-exposed equities is the strongest since 2019 and free cash
flow at the bulk of those firms is forecast to outstrip analyst expectations,
according to the Citi team led by Drew Pettit.

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