Let’s talk about Artificial Intelligence. No, not the kind that will take over the world and enslave humans (at least not yet), but the kind that’s being developed by big tech companies like Amazon, Alphabet, Facebook and Microsoft. They’re all trying to be the ultimate ruler of AI, but let’s be honest, there’s no telling who’s going to win. It’s like playing a game of “risky shovel” – no guarantees your shovel won’t hit a rock and impale your foot. So, instead of gambling on the AI head honchos, let’s focus on the companies that will help bring this AI dream to life.
But hold up, don’t go diving headfirst into AI investing just yet. The current prices will cost you an arm and a leg, literally. The hyper-scalers have millions of servers that run AI, playing chess, driving cars, and even blabbering with you on chatbots. To keep up with the demand, these companies will need to upgrade their servers expeditiously. If you’re an investor, you might want to wait for a better opportunity to come along where you won’t pay your weight in gold for AI investments.
On the other hand, if you’re feeling lucky, you might want to keep an eye on the iShares Semiconductor ETF. This provides us with a lineup of the largest American companies that produce memory chips, microprocessors, integrated circuits, and related equipment. This year, the ETF is up approximately 23%, but look deeper, and you will notice that some companies are doing even better – Nvidia has gained over 80%, while Advanced Micro Devices, Inc. has advanced by more than 50%. These guys control 29% of the market for graphics processing units (GPUs), which are crucial for AI since they help process massive amounts of data. Arista Networks is also climbing high, with a 30% climb this year, producing network switches for massive data centers that help connect everything. They even have a 10% share in the market!
It’s almost like waiting for a film to hit the screens, a sequel to your favorite TV show, or the waiter bringing your food when you thought he forgot about you. The good news is if you hang tight and wait for the right moment, you could be rolling in the dough. Bad news is, you might have to wait a while, so keep calm and carry on.
Serious News: cnbc
