Interactive Brokers chief strategist Steve Sosnick says the frenzy around artificial intelligence continues to drive retail flows, pushing investors to bid up stocks that deliver even modest AI exposure.
In a CNBC interview, Sosnick says the market’s reaction to Oracle’s latest forecast shows how investors are treating cloud and AI themes as catalysts for rapid revaluations.
“All things cloud, all things AI are still capturing investors’ imaginations. And the fact that the amount of money that’s just been put on top of Oracle because of admittedly a very good forecast is just astounding.”
Sosnick says the scale of the move raises questions about whether Oracle should now be considered part of the market’s elite group of tech leaders.
“I’ve been sort of asserting all along that Broadcom either belongs in the Mag 7 or maybe we can call it the Great 8. I’m wondering now at this point if Oracle… maybe that acronym needs to be expanded.”
He cautions, however, that the concentration of gains in a handful of stocks still represents a structural risk.
“You have a handful of stocks that make up the majority of the weight, certainly in the NASDAQ 100, and to a lesser extent, the S&P 500. And so what happens is, as these stocks go, so do the indices.”
But for now, Sosnick says the momentum generated by tech firms is continuing to carry the market.
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