Prediction: This Artificial Intelligence (AI) Stock Is Going to Make Big Moves in 2025. Here's Why.
Artificial technology (AI) is here to stay. Large language models (LLM) like ChatGPT are already disrupting many industries with AI-generated text, images, and even videos. The next generation of LLMs will be even more powerful, and I probably haven't even imagined the incoming wave of killer apps yet.
But nobody knows who will make the next big AI move. The big winners in this stock market boom are largely generalists -- makers of the computer chips and systems that power today's AI software. And even the most dazzling market darlings have met some investor skepticism lately. AI chip designer Nvidia (NASDAQ: NVDA) shares are down 16% from their recent highs, and server systems builder Super Micro Computer (NASDAQ: SMCI) took a 63% swan dive in about five months. They could recover and skyrocket again, or maybe they're still facing further price cuts.
So how do you invest in the exciting AI space without running into a potentially overvalued land mine? In my view, the trick is to start with a fairly priced or even undervalued AI stock. Step two: Make sure it's a high-quality company with potential to disrupt its chosen industry in the long run. It's a short checklist, but it also produces a short list of results.
Source Fool.com
