Want to Build a Portfolio That May Soar in an AI Boom and Withstand an AI Crash? Here's How.

Artificial intelligence (AI) promises to join the list of technology game-changers -- from the telephone all the way back in the 1870s to, much more recently, the Internet. This is because AI has wide-reaching potential to save companies and individuals time and money. This hot technology could help companies gain in efficiency and in some cases develop a product that may transform lives -- such as a better-performing medical device or drug.

Analysts predict that today's $200 billion AI market could roar higher in the coming years and reach beyond $1 trillion by the end of the decade. It's no surprise, then, to see AI giants such as Nvidia or Super Micro Computer soaring to record levels and generating billions of dollars in revenue. Nvidia dominates the AI chip market, while Super Micro sells the servers and full rack scale systems used in AI data centers.

And it's also no surprise to see investors piling into AI stocks and winning big. But, in recent times, some economists have started to warn about a market bubble set to burst. And certain analysts question AI's transformative potential, calling into question the future of this technology. If these experts are right, a portfolio heavily exposed to AI stocks may greatly suffer in the near term or down the road. But this doesn't mean you shouldn't invest in this area, which still may deliver significant growth. Here's how to build a portfolio that could soar in an AI boom and withstand an AI crash...

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Source Fool.com