Investopedia: “What I’m Telling My Clients About Investing in AI”
From the popularity of ChatGPT, fracas involving OpenAI and Sam Altman, project investments from big companies like Microsoft and Alphabet, and ongoing concerns about the impact on jobs, artificial intelligence has become a hot topic in the global public square.
Naturally, if AI is going to be the next big thing, like railroads in the 19th century and the internet in the 20th century, investors don’t want to be left behind.
I’ve received many requests from clients asking how they can invest in AI and position themselves to benefit from rising value and growing importance. Here’s what I’ve been sharing with my clients.
Buying Stocks of Companies Hardware Tools
Anyone who follows the financial markets would have come across the story of NVIDIA. On April 24, 2023, it closed at $270.33 per share. A year later, it closed at $796.77 per share, a 195% increase.1 The company has continued to make headlines since, too.
NVIDIA supplies the hardware tools (chips) that are needed for AI development. It is currently the leader in the graphic processing units (GPUs) market, and it’s one company that has benefitted from the AI boom. But NVIDIA is not the only company supplying AI chips.