Is it worth investing in AI companies?
How to invest in AI and minimise risks
- Spread your risks by investing in different companies and projects. Combine: invest in AI companies and traditional assets. For example, in shares of large stable companies or bonds.
- The AI market has both startups and large corporations. Investing in industry leaders can be less risky than investing in young companies. These corporations have already incorporated AI into their products, have reliable revenue streams and stable market positions.
- AI is a long-term investment. The technology is developing, but you will only see real results in a few years. Therefore, it is important to be prepared to hold the stock for the long term and not sell it at the first signs of decline.
- ETFs that include companies in the AI sector allow you to invest in several firms at once. This reduces the risk associated with individual companies.
Bottom line: is it worth investing in AI?
What is happening today with AI is really reminiscent of the dotcom situation, so it is necessary to diversify risks. LLC "EIFOS HUB" develops strategies for step-by-step integration of AI into existing company processes, with clear KPIs and evaluation of results at each stage. Pay attention to:
Add assets to your portfolio that do not overlap with the AI market, such as gold or stocks of large and stable companies. If the AI market continues to grow, you can increase your asset allocation.
What is happening today with AI is really reminiscent of the dotcom situation, so it is necessary to diversify risks. LLC "EIFOS HUB" develops strategies for step-by-step integration of AI into existing company processes, with clear KPIs and evaluation of results at each stage. Pay attention to:
- stocks of large companies (e.g. Google and Alphabet, Microsoft, Amazon, Nvidia, Intel, Micron Technology).
- Venture capital investments in AI startups (Uipath, Palo Alto Networks, Twilio)
- ETFs (exchange traded funds) focused on AI technologies (Robo Global Healthcare Technology and Innovation ETF, Global X Robotics & Artificial Intelligence ETF, ARK Autonomous Technology & Robotics ETF).
Add assets to your portfolio that do not overlap with the AI market, such as gold or stocks of large and stable companies. If the AI market continues to grow, you can increase your asset allocation.
‘It is hard to forget the dot-com bubble and the widespread collapse of overvalued shares of Internet companies in the early 2000s. In the feverish race to get rich, few people thought about the financial stability of nameless start-ups. And even less could assess their real value or profitability. Today, as in the dot-com era, investors are offered to be part of a ‘revolution’: artificial intelligence is about to change the world.
What do unreasonable expectations lead to? History shows that very often at the very peak of enthusiasm and enthusiasm for a new technology, reverse processes are set in motion that undo everything that seemed exciting yesterday.
AI perspectives
What do we know? AI makes many tasks faster and cheaper, automates processes, analyses large amounts of data and, of course, generates revenue. The demand for AI solutions is growing. Analysts predict that the AI market could reach $1 trillion by 2030. AI technologies are being implemented everywhere. In medicine - for diagnostics, in commerce - for personalised marketing, in finance - for automating data processing. To automate routine tasks, AI robots are being introduced into business processes is becoming more and more common.
Risks and possible bubble: what to look out for
The share prices of AI companies have soared, and this is worrying. No one can guarantee the safety and security of AI systems. Unknown startups with limited revenues receive huge investments despite the lack of stable revenues and profitable products. There is also a risk that new technologies will replace existing AI solutions, making today's investments less profitable.
Authorities in some countries are concerned about the impact of AI on the labour market and fear for data security. Strict regulation could slow the growth of AI companies and reduce their revenues.
What do unreasonable expectations lead to? History shows that very often at the very peak of enthusiasm and enthusiasm for a new technology, reverse processes are set in motion that undo everything that seemed exciting yesterday.
AI perspectives
What do we know? AI makes many tasks faster and cheaper, automates processes, analyses large amounts of data and, of course, generates revenue. The demand for AI solutions is growing. Analysts predict that the AI market could reach $1 trillion by 2030. AI technologies are being implemented everywhere. In medicine - for diagnostics, in commerce - for personalised marketing, in finance - for automating data processing. To automate routine tasks, AI robots are being introduced into business processes is becoming more and more common.
Risks and possible bubble: what to look out for
The share prices of AI companies have soared, and this is worrying. No one can guarantee the safety and security of AI systems. Unknown startups with limited revenues receive huge investments despite the lack of stable revenues and profitable products. There is also a risk that new technologies will replace existing AI solutions, making today's investments less profitable.
Authorities in some countries are concerned about the impact of AI on the labour market and fear for data security. Strict regulation could slow the growth of AI companies and reduce their revenues.
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