How to Invest for an AI Boom, AI Bust, or...Both: These ETFs Can Help.
It feels like we're reaching a moment of peak doubt about the AI boom, so investors have big choices to make.
Overview
I've been investing in the stock market for more than 20 years. Throughout my life as an investor, I don't think I've ever seen a moment when so much seems to be riding on one big question about the markets: Will the artificial intelligence (AI) boom pay off for investors?
Major tech companies are spending hundreds of billions on AI data centers, semiconductors, and other infrastructure to power the advanced AI models they hope will become profitable business tools. If this AI boom thesis proves true, AI might usher in a new era of productivity and higher corporate profits. That would likely be great news for shareholders of major tech stocks in the Nasdaq-100.
Details
But what if it turns out that the AI boom is overhyped and overvalued? What if AI turns out to be another dot-com bubble that bursts, leading to a prolonged bear market for stocks? If the AI bust thesis proves on target, it might make investing in bonds a better choice for the future.
Source
Originally published at www.fool.com.