Want to Invest in AI? Here Are 1 Stock to Avoid and 2 to Buy
Investing in the potential of artificial intelligence (AI) right now isn't easy. While there is a lot of hype and interest in the industry, there is also reason for caution. Many stocks can become overhyped and see their valuations skyrocket to unsustainable levels. When actual business results are examined, these stocks don't live up to expectations and their prices crash.
Trends like this also played out in the dot-com bubble in the early 2000s. Many current investors (like myself) weren't old enough to invest when that trend was in vogue. More recently, software-as-a-service stocks, cryptocurrencies, and metaverse-centric companies have all gone through their boom times, only to eventually see their prices crash back down to earth.
Keeping this real potential for a bust in mind, are there any AI stocks worth investing in long-term? Or is hype history about to repeat itself? Let's take a look at three AI-related stocks and see why one might want to be avoided right now while the other two have potential.
Source Fool.com
