Shinhan Asset Management, Increase in Individual Net Purchases of SOL US AI Software

The supercycle driven by the massive theme of artificial intelligence (AI) is shifting towards software.

Shinhan Asset Management announced on the 15th that individuals have net purchased 8.5 billion KRW worth of the ‘SOL US AI Software’ ETF, which invests in core US AI software companies, over the past week.

Since the end of last month, US AI software companies have consecutively reported strong earnings, with major AI software companies such as Palantir, Salesforce, Oracle, and ServiceNow all reaching 52-week highs. The SOL US AI Software ETF, which holds a high proportion of these companies, rose 6.76% over the past week.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “The flow of the AI theme that the market expects and accepts is moving from semiconductors through power infrastructure to software.” He added, “AI software corresponds to all areas at the forefront within the generative AI value chain, including AI platforms, applications/services, and cloud. Given that related companies are delivering visible results, it is necessary to pay attention to the upcoming era of AI software.”

Kim also forecasted, “With the US entering an interest rate cut cycle and the major issue of the presidential election in the second half of the year concluded, postponed budget execution will begin, and the performance of software companies will gradually become visible.”