The best-placed stock on the ASX to ride AI boom

The US sharemarket has lifted twice as much as the ASX thanks to the AI boom – but there are locally listed stocks ready to become champions of the sector.

The US-based AI-fuelled boom that put the big tech stocks such as Amazon and Tesla back in the money.

Why has Wall Street’s S&P index lifted 18 per cent, against only 6 per cent on the ASX over the year to date?

It’s due to the US-based AI-fuelled boom that put the big tech stocks such as Amazon and Tesla back in the money.

On the ASX we have a limited technology sector, but today’s guest on the Money Puzzle podcast is sure our market carries at least one AI champion … if not two.

Data storage specialist NextDC and a smaller rival, Macquarie Technology, are examined in this episode as potential ­choices for local investors who are not willing to make the jump into Wall Street to buy wildly expensive stocks such as chipmaker Nvidia.

Who is the guest?

Rudi Filapek-Vandyck is editor of sharemarket research service www.fnarena.com

Why him?

He is an expert on the sharemarket investments of retail investors on the ASX.

What are the topics?

● The AI contenders on the ASX

● Will CSL recover?

● The best and worst of exchange-traded funds

● Gearing into shares

Question of the week

Regular listener Matthew asks: The magnificent seven – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – represent 29 per cent of the S&P 500, or 61 per cent of the Nasdaq 100. All have led amazing returns in the past 12 months.

My question is: Is it possible to lock in these returns by hedging while still staying invested in the S&P 500? If one wanted to do that, how would they go about it?

Questions always welcome to the podcast, via [e-mail]