'AI excitement is becoming irrational': 4 Wall Street strategists break down why investors should proceed with caution around artificial intelligence stocks as hype around the technology grows
. But as was the case with the internet, that could take many years, and the final outcome may not be what investors are expecting right now. This is mind, some strategists are urging investors to proceed with caution around the technology.
Below, we've compiled quotes from strategists who are warning investors not to get caught up in the hype.Pride's main concerns lie in valuation levels and uncertainty around AI's ultimate impact. "While innovative companies may have attractive growth prospects, the price one pays for such investments is a key determinant of future returns and should be a major consideration for investors," he said on Monday.
"Additionally, it is not always obvious who the long-term winners of innovative disruption may be. For example, of the top-ten technology stocks at the peak of the Tech Bubble, only two remain in the top ten today," he continued."Investors should tread carefully around hot tech trends, as the price one pays for them is a key determinant of future returns."Landsberg is worried about the speed with which AI has captured the imagination of investors.
"The AI excitement is becoming irrational," he said on June 1."To see the market caps of AI-related stocks rise by hundreds of billions of dollars in a matter of weeks is worrisome, especially since it remains unclear exactly how these companies will monetize artificial intelligence.""We will be trimming a great deal of our profits in AI-related stocks over the next few weeks, as many of these stocks are up over 100% so far this year.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Patty Stonesifer said ‘yes’ to becoming the Post’s interim CEOThe Post’s new interim CEO is a former Microsoft executive who has been on Amazon’s board of directors for nearly three decades. But what Patty Stonesifer emphasized most when meeting staff was that her job with the news organization is temporary.
Read more »
Why is inflation cooling — and why isn't it coming down more | CNN BusinessAhead of May’s closely watched Consumer Price Index, set to be released Tuesday morning, economists are expecting yet another month of smaller price increases.
Read more »
Vinovest review: Fine wine investing made easy for CanadiansInvesting in wine usually has a barrier to entry, but Vinovest offers a hassle-free way of building a diversified portfolio
Read more »
Here's How Investing In A FoodCycler Made My Kitchen 90% More Sustainable39% of food waste comes from households (more than restaurants and farms🤯). Reduce your food waste footprint by 90% with this countertop food recycler that creates plant food from your scraps ♻️🥗
Read more »
S&P 500 Index (SPX) - Investing.comGet S&P 500 Index live stock quotes as well as charts, technical analysis, components and more SPX index data.
Read more »
GM Investing More Than $600M Into Indiana Plant For Next-Gen Full-Size ICE Pickups | CarscoopsThe investment paves the way for the redesigned Chevrolet Silverado 1500 and GMC Sierra 1500 to be built at Fort Wayne Assembly car auto cars
Read more »