It's no secret that artificial intelligence (AI) stocks have captivated investors this year.

The launch of OpenAI's ChatGPT a year ago was a watershed moment for generative AI technology, showing the world what large language models are capable of. Since then, investors have been bidding AI stocks like Nvidia, Microsoft, and higher, and tech stocks in general have outperformed the market due in large part to optimism about AI.

However, while most tech CEOs believe generative AI will be a disruptive technology, picking the right AI stocks isn't so easy. After all, even if the technology is disruptive, there will likely be more losers than winners. Investors only need to look back at the dot-com bust to be reminded of how difficult it is to pick winners in an emerging technology. Plenty of companies went bankrupt when the bubble burst, and even early leaders like America Online (AOL), Netscape, and Yahoo! turned out to be bad investments over the long run.

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Source Fool.com