Market Commentary

Is Blake Moore Betting on an AI Revolution?

Jabran Kundi
25 Jan 2024 · 2 minutes read

Representing Utah’s first congressional district, Blake Moore has just disclosed his stock trading transactions from the 19th of January 2024. He has converted a lot of his individual stock holdings into two ETFs: SPDR S&P 500 (SPY:US) and Vanguard Growth ETF (VUG:US). The move comes amid tech stocks making new rallies, with both SPY and VUG heavily focused on the technology sector.

He sold $131,000 to $740,000 worth of stocks, including mainly Apple (AAPL:US), META Platforms (META:US), Alphabet Inc (GOOGL:US) and Microsoft (MSFT:US). He then piled $232,000 to $630,000 into the two ETFs SPY and VUG. 

What Blake Moore is suggesting with this switching trade is that he believes the technology sector will prosper in the coming months. The tech sector has already had a great rally since inflation numbers cooled down. The only thing that might move the sector further up is AI. So effectively, Moore is betting on an AI revolution.

If that is indeed the case, he may not be far off. AI is a tricky investment because many of the big companies, including the ones that Moore just sold, have already had a great AI rally and continue to rally further. No doubt AI is transforming everything, but we don’t know how much of an impact is already priced into these tech companies.

But what we do know is that ever since the launch of ChatGPT in November 2022, companies across the world have been wondering how AI can help their business. The time is not far away when every tech company will have to incorporate AI into its business. Anyone who has used generative AI will know that such a time is inevitable.

VUG is heavily weighted towards the technology sector with a 54.8% weightage of the tech sector. SPY has a 29.8% tech weightage. Blake Moore may just have placed a big bet on AI revolutionizing the tech sector. Both SPY and VUG hit their all-time highs this week.