Artificial intelligence (AI) is looking like more than a buzzword. Unlike other fads that have come and gone in recent years, AI is proving to have real-world impact, and investors are riding the trend. The stock of chip maker Nvidia, whose devices help power AI technology, is up 230% this year, while Amazon's cloud computing business is booming as it launches more generative AI services, and JPMorgan Chase is testing its own generative AI to assist with wealth management and customer service.

As with pretty much anything new and not fully tested, this could lead to incredible shareholder gains, or it could flop and take investor funds with it. Based on how things are going so far, the potential for high gains looks compelling, and investors shouldn't be deterred from taking a chance on some AI stocks that could explode.

Pagaya Technologies (NASDAQ: PGY) is a relative newcomer that uses AI to assist in credit evaluation and lending, and it's gaining momentum. It could skyrocket, and investors should stop and take a look.

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Source Fool.com