Artificial intelligence (AI) stocks are all the rage now. But investors shouldn't get too caught up in the hype. There are some winners and some duds, like in every industry. Do careful research about any stock you consider without relying on short-term trends and buzzwords.

One AI stock that has investors sitting up and taking notice is personal stylist company Stitch Fix (NASDAQ: SFIX). After the founder-CEO returned to take the helm this year, the board announced a permanent replacement last week. Is this the right direction for Stitch Fix? How should investors view this development?

Stitch Fix was dreamed up by founder Katrina Lake while she was still in college. The idea behind Stitch Fix is that the company can use AI and machine learning, combined with a human touch, to figure out a client's style preferences and choose personally curated clothing pieces for each client. This sets it apart from almost any other fashion concept in stores, where a customer might get help from a salesperson or pay top dollar for a stylist, or go online for product recommendations based on past purchases or search history.

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Source Fool.com