Welcome, folks, as we get ready for another installment of our weekly Hypergrowth Investing podcast, where we discuss all things investing, such as electric vehicles (EVs), automation and so much more. But this week, we’re doing a deep-dive into the topic of the year: artificial intelligence (AI).
We’ve said it before. AI will change everything about everything, just like the internet, the computer, fire – even the wheel – changed everything about everything. The AI Revolution is here, and we think it’ll move forward at lightning speed over the next few years. So let’s unpack it, understand it, and find ways to profit from AI stocks.
Broadly speaking, artificial intelligence is technology that uses data to learn and improve over time without the need for human intervention or oversight. But the topic is amorphous – AI isn’t one thing. There’s conversational AI, like OpenAI’s ChatGPT and Alphabet’s (GOOG, GOOGL) Bard. We’ve had more ubiquitous low-level voice AI in things like Siri, Alexa, and Google Assistant. And what about services like Spotify (SPOT)? That platform uses machine-learning algorithms to track songs users enjoy in order to recommend new music. We have robotics, automated software, self-driving cars… the list goes on. AI can be manifested in so many ways; and that’s why investors are so excited about it.
But why is that hype happening right now? ChatGPT. In short, artificial intelligence is having its ‘iPhone Moment.’ When Apple (AAPL) released the first iPhone, the internet had been around for many years. But it wasn’t until that breakthrough consumer product – with robust technological power literally in the palms of our hands – that we exploded into the internet era.
Now innovations like ChatGPT are arriving at a time when the world is producing exponential amounts of data, which is essential for AI development. And the volume of daily data creation is only going to explode higher from here.
We’ve arrived at a new era, folks. And it’s time to embrace this AI Revolution to score generational gains.
So Which AI Stocks Should You Buy?
With that, let’s get to the million-dollar question: What are the best AI stocks to buy right now?
Well, the simplest, most straight-forward way to play AI is to buy Big Tech stocks. We’re talking Microsoft (MSFT), Alphabet, Amazon (AMZN), Apple, and Meta (META). These behemoths have access to all of the world’s data – trillions of social, consumer interest, location, and usage data points. Plus, they have and continue to attract world-class engineering and tech professionals through enormous salaries and stock compensation packages. Talent + data = robust AI.
Big Tech has been heavily investing in artificial intelligence for years, and now they will unleash all that tech to the world, fueling this revolution’s fire. Recently, their stocks have been making substantial comebacks from multi-year lows. These are rallies you want to buy into.
In truth, since they have sole access to the world’s data, Big Tech will rule the day when it comes to AI. So, when looking to invest in startups, be very selective. Find the companies innovating in the space and carving out a competitive niche for themselves. Otherwise, they’ll be crushed as this revolution propels the entire world into the future.
Watch our full episode of Hypergrowth Investing to hear the entire bull case for AI stocks, quantitative investing, housing stocks, and much more.
On the date of publication, Seth Kuczinski did not have (either directly or indirectly) any positions in the securities mentioned in this article.