Tech Stocks on the Upside: A New Look at AI and Income Funds

The market has been nervous about artificial intelligence, but new evidence shows it’s actually boosting job growth and demand for software. A study by Apollo Global Management highlights a steep rise in new businesses that use AI, especially in areas where the technology is most adopted. This trend is mirrored by reports from The Wall Street Journal and LinkedIn, which note a surge in AI‑related jobs and the need for skilled workers. Despite this positive outlook, many software shares remain cheap. An ETF that tracks SaaS companies shows a low yield and has been sold off because investors feared AI would reduce demand for their products. However, the rising need for talent suggests that these companies may actually benefit.

Enter a closed‑end fund that pays 7. 8% dividends and holds both public and private AI firms, such as Databricks, NVIDIA, Anthropic, and Bytedance. The fund’s total return this year has outperformed the broader software sector, yet it still trades at a discount to its net asset value. This gap indicates that the market has not fully priced in the fund’s upside. The dividend is paid monthly, providing a steady income stream that is uncommon for tech investments. With the discount likely to close and the possibility of additional special dividends, this fund offers a unique blend of growth potential and reliable income.

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