Should You Invest in AI? Capitalizing on the Rise of Artificial Intelligence

Artificial Intelligence is an up-and-coming investment. If you heard about the big crypto wave, you know it was once possible to get returns on investments of 100 or 200x. Crypto taught us all we can actually turn a hundred into a million. Is there a “to the moon” coming when we talk about AI? Should you invest in AI right now?

AI is an obvious win. When an investment is that obvious, you need to insert the basic logic into the conversation. If it’s obvious to you, and you’re not an experienced stock trader, it’s probably obvious to many other people. When a lot of people want to buy, simple rule, it means you are in a maker market. Prices will rise with the demand.

My Croatian grandmother had a saying: if the apple tree is the talk of the town, don’t expect one helluva harvest.

I dare you to find me someone with money to spare who doesn’t know Artificial Intelligence is the hottest topic to date. I double dare you!

You might find that the AI low-hanging fruits have been picked clean. Many people have been apple-picking since early November. This being said I have NEVER discouraged anyone from investing. Every day is a good day to bet on the market if you're built that way.

The Big Players Already Made Their Move

Microsoft Corp’s NASDAQ summary shows the company gained somewhere around 53% since the low in November. Alphabet Inc. is up some 34%, and they didn’t even release Bard worldwide. Nvidia is up 400%. Whoever bought the dip in November is now riding a good wave.

This is more a time to take profit, less so to invest. It’s anyone’s guess how much this wave will play out, but there are plenty of commentators saying AI is currently high risk. To many out there, high risk will sound GREAT.

AI investments are not saturated, but people are biting in on a lot of the hype. When this happens, future markets and ETFs are great to look into.

Thousands of Projects To Bet On

Projects sprouted like mushrooms after the storm. They’re not all going to be edible. When Microsoft came out, there were literally thousands of aspiring operating systems. You would have only stood to gain if you were invested in a particularly geeky guy in Seattle.

When crypto came out, tens of thousands of crypto projects and tokens were being churned out. We were mostly running around like headless chickens looking to turn a thousand into a million. While many tokens did bring an immediate profit, do not imagine that everyone who heard about crypto became an overnight billionaire. In fact, plenty of margin traders were losing kidneys and pieces of livers all over the place.

It’s amazing if you can find a great AI project that is in the early stages of development and open to investors. The “buy low, sell high” principle means you need to find the projects when they are at their early stages. The problem is, you can’t tell if they’re raising a future genius just by looking at the sonogram.

What this means is that the more you diversify, the better chances you stand for a good win. Every investor is perfectly fine with calculated risk since one big break can make up for all the losses.

This Is Not Tech That You Will Find On Every Corner

Artificial Intelligence is a completely new breed of technology. Don't expect to see the next start large language model emerging from someone's garage. These models take in the kind of processing power that only Alphabet or Microsoft can afford to grant.

While the market is over-saturated, most commercial, mass-production models will one way or another plug into one of the bigger players.

If you want to look for the big players, look at B2B, big research laboratories, large corporations that can afford to feed large amounts of niche data into their own systems.  

What Creates Value?

AI systems demand a lot of processing power. Their data sets need super chips and supercomputers that didn’t exist yesterday. Nvidia rules the super chip market. Intel and AMD are slightly lagging behind, but hey, this is not a single-player market.

Keep in mind that Nvidia stocks are some of the most expensive out there, and you would be buying stocks at well over $400. This is four times the value they had in November. Processing FEELS like a great investment but you might end up buying in the middle of the hype.

Many experts agree that Nvidia, AMD, and Intel are bound for a healthy rise. They also agree this is not the lowest price we will see in the next couple of quarters.

Big Research and Development

The big breakthroughs are going to come from the big players: Microsoft, Google, Tesla, Meta, and Amazon.

Investors looking at companies with strong research and development departments, whether it’s hardware or software. When it comes to hardware, there are certain key times that are industry-specific (think phone releases before Christmas kind of deals). When it comes to software, improvement is continuous and messier.

The big giants aren’t done speaking. OpenAI announced they are pulling some breaks on new releases. Google’s Bard isn’t yet global. Tesla…well Tesla is Tesla and their robotics endeavors will go up and down on Elon’s whim. Meta, Apple and Amazon are still fiddling.

The question for anyone who wants to invest is whether the hype factored in the great success of the new releases. Zuckerberg’s Meta is “reimagining our infrastructure for the AI Age,” which is code for lagging behind. At the same time, the meta stocks are over $300, compared to November’s $90.

Medical Research Looks Like a Rocket To Be Lit in the Future

In the medical field, there is no “move fast and break things.” This is a thoroughly regulated field, so their big announcements are yet to come. If you’re looking at something that likely has room to grow, the medical field sounds like a virtually safer bet.

Yes, medical research will be hands down one of the most impacted fields. AI has an immense capacity to see patterns at scale. This was precisely the biggest brakes on medical research: the immense volume of data processed by scientists, with some help from expensive, exclusive, closed-source software.

AIs will revolutionize every single field. This is not just about tech, this is about a sweeping market movement. Plenty of people are looking outside of tech, at early adopters who stand to gain the most from implementing AI. Industries that will be accelerated like gaming, healthcare, and resource exploitation, are going to surprise everyone who is not looking.

The Overall Feel of the Market?

In closing: if there is one piece of advice every winning broker will give you, that’s to diversify. Don’t keep all your eggs in one basket unless you’re planning for one helluva omelet.

If you’ve been spoiled by the crypto market, keep in mind your horizon is not for next week. The regulated markets are slower. Nothing compares to the volatility of crypto coins.

Have healthy expectations, don’t invest more than you can afford to lose, and have fun betting!