AI hype has reached new heights in recent months, and as more companies race to implement AI strategies, investors are zooming to get in on the action.
Programs such as ChatGPT are showing the world the true potential of the technology and what a future with ubiquitous AI-generated content may look like. A paradigm shift is rippling across the economy as industry leaders position their firms for the revolution to come.
The rally has been mainly driven by a handful of tech companies, namely Microsoft, Nvidia, AMD, Google, and Meta, with investors betting these firms are best positioned to capture the predicted surge in AI-powered productivity and profits in the coming years.
“I do not believe that this new development will create a sustained bull run; interest rates have risen too much to be affected by the promise of AI. It cannot overcome the historical rate increases,” says Doug Greenberg, Founder and President of Pacific Northwest Advisory.
There are already a plethora of use cases for the technology, from generating content to AI legal advisors and even AI-powered tax apps that help optimize your federal income tax filing.
“We think that AI has established itself with demonstrated use cases and think that the long-term investment outlook is strong,” says Bryan Courchesne, CEO of Digital Asset Investment Management (DAIM).
“Our advice to individual investors is to avoid trying to pick a winner and instead use a more passive approach,” Courchesne adds. “There will be companies that benefit immensely, but it is too early to know who they will be. Investing in the Nasdaq, through QQQ, is probably the best bet for individuals at the moment.”