13th Feb 2023: The S&P 500 index is up 5.08% over the past 30 days, led primarily by key tech players. However, artificial intelligence (AI) is the most crucial element leading the market surge that isn’t restricted to the S&P 500. Even the NASDAQ Composite and Russell 2000 have ended their weekly stints in the green zone, with AI stocks leading the way.

Trading.biz analyst Rahul Nambiampurath believes that increased adoption and scaled infrastructure development are the primary reasons AI is growing as a theme in 2024.

“For companies like NVIDIA, it is the global supply chain strength and the unveiling of innovative products like the H200 chipset, which are leading the market surge,” mentions Rahul.

Which Are the Top Picks To Consider?

As for the picks, here are some of the top AI or rather specific Tech players that are showing remarkable price strength at their counters:

Arm Holdings (ARM): Up by 60% week-on-week

Samsara (IOT): Up by 8.31% week-on-week

SPS Commerce (SPSC): Up by 17.31% week-on-week

UiPath (PATH): Up by 12.18% week-on-week

Cloudflare (NET): Up by 33.04% week-on-week

The growth of AI, cloud-specific, and IOT stocks suggests a much deeper cross-sector integration involving finance, the auto space, chip manufacturing, healthcare, and more.

Delving Deeper Into the Price Action of UiPath (PATH)
Most of the stocks in the AI and tech space are growing. However, PATH is particularly garnering attention courtesy of its sizable position in the ARKK portfolio. UiPath specializes in Robotic Process Automation (RPA) and aims to bring intelligent, self-learning automation tools.

PATH is trading inside a channel/wedge-like pattern. The broadening formation might turn bullish if PATH breaches the upper trendline, with $32 in sight as the next level to breach.

UiPath (PATH) daily chart: TradingView

However, despite the meteoric potential, a short-term correction, presumably down to $23.66, might be on the cards, courtesy of the bearish divergence exhibited by the relative strength index indicator. Yet, the long-term view of PATH and other AI-focused stocks remains bullish.