The artificial intelligence (AI) industry is still relatively new, but it's front-of-mind for investors right now because of the incredible returns generated by stocks like Nvidia, which has surged by more than 700% since the start of 2023 alone. AI has the potential to drive a productivity boom across the global economy, which could create an unprecedented amount of economic value in the coming years.

But past technology revolutions, like the internet, enterprise software, and cloud computing, have taught us that not every company thrives -- or even survives -- over the long term. Therefore, investors who want to own AI stocks should brace for volatility, even among the industry leaders. After all, even Nvidia stock recently suffered a peak-to-trough decline of 27% between June and August.

But there is a way investors can smooth out the noise and even avoid the need to pick winners and losers in the AI race entirely.

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Source Fool.com