From the internet to e-commerce to the cloud, businesses and people are trending toward efficiency. In a recently published report, researchers at the International Monetary Fund (IMF) predicted that artificial intelligence (AI) will affect 40% of jobs worldwide. Generative AI is in its early phases, but it is already making its mark on the economy and jobs. Software is taking over a growing number of tedious tasks, and customer service and ordering are becoming more automated. Investors are clamoring to get a piece of the action, but not all the companies in this arena are created equal.

Many of us remember the dot-com bubble and the bust that followed. And we all know what happened after 2021 when tech stock prices became decoupled from fundamentals. Now, a new wave of tech enthusiasm has tech stocks flourishing again, pushing the market to new all-time highs. Consider the performance of the Invesco QQQ Trust exchange-traded fund, which tracks the tech-heavy Nasdaq-100 index.

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Source Fool.com