OpenAI launched ChatGPT about a year ago, sparking a massive boom across the artificial intelligence (AI) industry. These days, every business worth its salt is doing something important and/or interesting with AI tools.

So, how do you invest in the AI sea change? Well, it's easy to fall back on the usual AI suspects, such as hardware leader Nvidia or software giant . But those stocks have already skyrocketed due to the long-term promise of the AI revolution. Microsoft's stock price is up by 56% in 2023, and Nvidia's shares have more than tripled this year. As a result, they are priced for perfection at nosebleed-inducing valuation ratios.

Maybe it's best to leave these giants alone, for now, waiting for a seemingly inevitable price correction. The buy-on-the-dip strategy looks appropriate for these early AI leaders.

Continue reading

Source Fool.com