AI-Run ETF Dumps Apple In Favor Of This Chip Stock And Hints At New Opportunity Brewing In Market

Zinger Key Points
  • Nvidia is among the top performing big techs this year as its AI exposure has increased interest in the stock.
  • Apple's gains have been more muted although the company's fundamental performance continues to be fairly resilient.

Apple, Inc. AAPL is often touted as an all-weather stock but one exchange-traded fund, powered by artificial intelligence, has deemed it fit to dump its entire Apple holdings and switched its allegiance to a chipmaker.

What Happened: QRAFT AI-Enhanced U.S. Large Cap Momentum ETF AMOM had a 7.96% of its portfolio’s weight in Apple in April but sold the entire stake in May. Incidentally, Apple was the fund's top holding in April.

The fund opened a fresh position in Nvidia Corp. NVDA in May. The chipmaker, which has seen its stock rally strongly this year on the back of AI momentum, is now AMOM's top holding, accounting for 7.99% of the portfolio.

Meta Platforms, Inc. META was the third biggest holding of AMOM, with a weighting of 6.62%.

See Also: Best Technology Stocks Right Now

Big Retail Bets: AMOM also added a slew of retail stocks to its portfolio, potentially reflecting its confidence in consumer spending and in turn the economy. Significant retail stocks added included:

Walmart, Inc. WMT: 7.84% weighting

Auto parts retailer AutoZone, Inc. AZO: 2.99%

TJX Companies, Inc. TJX: 2.98%

Starbucks Corp. SBUX: 2.87%

The fund already holds shares of Home Depot, Inc. HD (5.21% weighting), O'Reilly Automotive, Inc. ORLY (3.08% weighting) and Lowe's Companies, Inc. LOW (2.72% weighting).

Pharma Out Of Favor: AMOM also cashed out of big pharma names in May. It divested its entire stake in Eli Lilly & Company LLY, Vertex Pharmaceuticals, Inc. VRTX and Regeneron Pharmaceuticals, Inc. REGN. In April, these three stocks accounted for 6.52%, 3,23% and 3% of the portfolio, respectively.

The fund also sold all of its Monster Beverage Corp. MNST holding. The beverage distributor previously accounted for 2.72% of the portfolio weighting.

At last check, AMOM traded at $28.57, up 0.25%, according to Benzinga Pro data.

Read Next: 4 Retail Stocks Downgraded, But 3 Are Best Positioned: Why UBS Has A Bearish View

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