Investing in A.I.

Honestly, even though I think AI is going to be amazing and make a lot of money, I'm just sticking with index funds with the hopes that I'll get my "share" of AI profits. I'll not go after AI specifically in an "AI fund" or similar. I'm guessing there will be a whole "sector" type fund eventually for AI and maybe that's what you're asking about.
 
Well shoot if you asked this question a year ago I would have bet it all on one stock.
Did you ask CHATGPT?
Screenshot_2025-01-24-15-45-00-05_680d03679600f7af0b4c700c6b270fe7.jpg
 
Yep, hindsight is 20:20 and could make you a bundle - if you actually had 20:20 foresight. Wish I did! :cool:
 
I think AI benefits will largely accrue to the big, established tech companies. Sure, a new company or two may make it big, but the big dogs are will poised to scale the tech and integrate/distribute it.

QQQ may be a good vehicle.

Or private equity to get into the companies the big guys will buy.

Perhaps a bank shot investment in energy (particularly nuclear) or data center REITs
 
SCHG. You get a diversified basket of growth companies. Check the top ten holdings.
 
I have a chunk in a semiconductor ETF. Not exactly AI, but it is a building block for AI technology. FSELX. Gold rating on Morningstar and 5 stars. ER 0.65. Bought last Sept and am up 11.78%. It is more volatile than my other SP 500 and NASDAQ ETF’s. NVDIA is its largest holding.
 
I have been wondering when we would start referring to the "AI Bubble." My guess is two years.

From Rick Ferri's "All About Asset Allocation" : "There is a classic saying on Wall Street, 'What everybody already knows is not worth knowing.' "
 
2HOTinPHX said:
Well shoot if you asked this question a year ago I would have bet it all on one stock.
Did you ask CHATGPT?
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So I decided to ask CHATGPT your question. It came up with some very interesting choices. Too long to post here and not get called out again. It even included active charts where you can select time period for performance like the one above for each of its suggestions. Now I would never recommend it as anything other than a tool/play thing to start a search.
in the end it offered this advice when I asked it to compare to S&P:
In summary, while some AI-focused ETFs have periods of outperformance relative to the S&P 500, they often come with increased volatility. It's essential to assess your risk tolerance and investment objectives when considering these funds. Diversifying your investments and consulting with a financial advisor can help align your portfolio with your financial goals.
 
Koolau said:
Honestly, even though I think AI is going to be amazing and make a lot of money, I'm just sticking with index funds with the hopes that I'll get my "share" of AI profits. I'll not go after AI specifically in an "AI fund" or similar. I'm guessing there will be a whole "sector" type fund eventually for AI and maybe that's what you're asking about.
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Agree that index funds are the safest. Investing in single stocks is risky. Most people here are relatively risk-averse and that is why were are here.
 
I can remember wishing I could invest in IT stocks or funds in 1999, but I was prohibited because of ethics considerations. A year later I was glad.
 
Route246 said:
Agree that index funds are the safest. Investing in single stocks is risky. Most people here are relatively risk-averse and that is why were are here.
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This is the Active Investing forum. Talking about active strategies is the idea.

OP has asked for ideas about AI ETF's and so on.
 
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I've made some good money in AIQ and BOTZ over the past 18 months.

These ETF's are held in my Roth, where those kinds of long shots belong.
 
Sanstar said:
I have a chunk in a semiconductor ETF. Not exactly AI, but it is a building block for AI technology. FSELX. Gold rating on Morningstar and 5 stars. ER 0.65. Bought last Sept and am up 11.78%. It is more volatile than my other SP 500 and NASDAQ ETF’s. NVDIA is its largest holding.
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FSELX has been very good to me, very good. I've got an average annual return of 19.8% since May 2019.

Small correction, it's a mutual fund, not an ETF.
 
I stupidly had not caught up with AI at the beginning of my FIRE. I finally bought NVDA when it dipped in the summer. But that’s just a little risky slice. I did get in SCHG and am in broader indexes or target-date funds too, and as others said, AI (and energy) winds up in them these days.
 
Yeah, I've been a simple, ETF guy for a couple decades and will continue to take that approach. I do have SCHG thankfully since 2009 , but that wasn't intentionally done for AI exposure, but it is very tech heavy.
 
Well, this certainly was a timely thread.

Brutal for the NVDA fans today. My MRVL (long term holding) was hammered, off 19.1%. MFST off 2.1%. My sedate KMI (pipeline) off 9.3%.

But, up on the day due to Apple +3.25% and things like ABBV +3.88%. Not so good for my kid, off 2.3% overall (NVDA, ARM, MRVL dragging him down more than things like Stryker (SYK), Thermo Fisher (TMO) and Walmart (WMT) could help.
 
Yes, tough day. We'll see if we'll get a come-to-their-senses day tomorrow. Some are reporting that the headline $5 million number from DeepSeek is being overblown, like that's not the full figure, while at the same time U.S. AI-related companies are even touting DeepSeek's report as forecasting their own possibilities. Or others are saying DeepSeek will give the U.S. companies a good kick in the toosh. NVDA could be volatile a bit, but we really knew that.
 
NeilDH said:
Yes, tough day. We'll see if we'll get a come-to-their-senses day tomorrow. Some are reporting that the headline $5 million number from DeepSeek is being overblown, like that's not the full figure, while at the same time U.S. AI-related companies are even touting DeepSeek's report as forecasting their own possibilities. Or others are saying DeepSeek will give the U.S. companies a good kick in the toosh. NVDA could be volatile a bit, but we really knew that.
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A news program tonight said if the DeepSeek claims are true, that could the US concerns over Tik Tok look like Sesame Street. So, I guess, to be continued.
 
easysurfer said:
A news program tonight said if the DeepSeek claims are true, that could the US concerns over Tik Tok look like Sesame Street. So, I guess, to be continued.
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Not being a wiseguy, but I'm sure the "news programs" are blowing this story up as much as possible to get their clicks. My sense is this will be , from a long term investors lens, looked back on as more noise as the months and years go by.
 
FREE866 said:
Not being a wiseguy, but I'm sure the "news programs" are blowing this story up as much as possible to get their clicks. My sense is this will be , from a long term investors lens, looked back on as more noise as the months and years go by.
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I just hope it is not of the same scale & duration as the dot com crash.
 
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