AI Stocks Rise Amid Nasdaq’s Decline
- Despite a challenging week for the Nasdaq, State Street remains optimistic about the future of artificial intelligence investments.
- Paglia highlighted the widespread anticipation of a shift from growth to value stocks, but argues this transition hasn't materialized yet due to the strong momentum behind AI.
- "How would you not want to participate in the growth of AI technology?
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State Street Maintains Bullish AI Outlook amid nasdaq Volatility
Despite a challenging week for the Nasdaq, State Street remains optimistic about the future of artificial intelligence investments. Chief Business Officer Anna Paglia believes investor reluctance to miss out on the AI growth story will continue to support momentum stocks, at least in the short term.
Paglia highlighted the widespread anticipation of a shift from growth to value stocks, but argues this transition hasn’t materialized yet due to the strong momentum behind AI. She suggests a market signal indicating a slowdown in major AI trends would be necessary to trigger a significant rebalancing trade.
“How would you not want to participate in the growth of AI technology? Everybody has been waiting for the cycle to change from growth to value. I don’t think it’s happening just yet because of the momentum,” Paglia stated.”I don’t think the rebalancing trade is going to happen until we see a signal from the market indicating a slowdown in these big trends.”
While acknowledging a recent pullback, the SPDR NYSE technology ETF (XNTK) remains up 38% year-to-date as of Friday’s close,despite a 4% decline in the past week.Palantir Technologies (PLTR) is a significant holding within this ETF.
| ETF | Ticker | Year-to-date Gain (as of Nov 8, 2025) | Weekly Change (as of Nov 8, 2025) |
|---|---|---|---|
| SPDR NYSE Technology ETF | XNTK | 38% | -4% |
Paglia, with 25 years of experience in the ETF industry, believes increased attention will be paid to diversification in the coming months.