Are AI Shares Still Worthwhile Now?
Stock market expert Jens Rabe looks at the risks and opportunities of investing in AI shares.
The question is not whether AI shares are a good investment – because they definitely are. The real question is how and when everyone can best invest in AI stocks. Currently, they are already soaring.
Great profit potential
According to most experts, AI would only have a disruptive impact on our everyday lives in a few years or even decades. However, this was a mistake, as the current hype surrounding artificial intelligence proves. However, the current boom is not comparable to the dot-com bubble. Compared to that, there is still a lot of room for improvement. Nevertheless, there is great potential in AI shares that investors can exploit.
Keeping an eye on opportunities and risks
Innovative technologies naturally offer attractive opportunities and certain risks. For example, artificial intelligence can make working life significantly easier. It is capable of efficiently taking on rudimentary and also more complex tasks and increasing productivity. For humans, however, this also means that some activities will no longer be available in the future. Increased productivity on the one hand could therefore lead to social problems on the other. In addition, the error potential of AI should not be underestimated. Fake news is proof of this.
The two sides of the stock market
AI shares are currently among the big winners on the stock market. However, there will also be losers. For this reason, investors must choose their stocks carefully. It is important to analyse the chart carefully. Investors should also keep an eye on the different business models of AI companies. Companies like Nvidia, whose products are essential for building reliable infrastructure, are doing extremely well, and rightly so. However, companies like ServiceNow, Facebook or Microsoft are also exciting. They are known for smart applications that anyone can use directly. With the help of smart tools, people create added value for themselves and others.
Watch out when buying AI shares
Many AI shares are already running hot. This means that entering the market involves risks that should not be underestimated. Ultimately, it must be clear that not every currently hyped company can remain a winner. Investors must therefore be realistic in their search for buying opportunities. The positive market trend of their favourite stocks should be able to endure in the long term. So they should not expect no-brainers in the future market around AI either.
Jens Rabe
is the founder and managing director of the Rabe Unternehmensgruppe.
