Surging demand for AI boosts Polar Capital Technology Trust

(Sharecast News) - Polar Capital Technology Trust posted a hike in net asset value on Wednesday, on the back of booming equity markets and surging demand for artificial intelligence. Total net assets at the tech investor rose 60.5% to £6.1bn as at 31 October, while net asset value per ordinary share jumped 66% during the six month period, to 539.97p.

The investment manager said: "Global equity markets delivered strong returns during the trust's financial half year.

"The sustained recovered from post-Liberation Day lows in April was supported by robust US economic data, renewed fiscal stimulus, looser financial conditions and accelerating AI investment.

"Consumer spending and the labour market remained largely resilient despite tariff and policy uncertainty."

The trust added that while European markets had lagged both the US and Asia, they had still delivered positive returns, boosted by cooling inflation.

Looking ahead, the investment manager dismissed concerns about potentially stretched tech valuations.

"After a period of rapid share price gains, concerns about the existence of an AI bubble have increased. We continue to believe that the differences between today and the dotcom period are far more striking that the similarities.

"AI demand is real and continues to outpace the industry's capacity to supply it.

"While we expect our bullish outlook to be periodically tested by bouts of volatility, we remain AI maximalists."

The trust's three biggest holdings are currently in Nvidia, Microsoft and Broadcom.

As at 0830 GMT, shares in the trust were largely unchanged at 475.43p.