We asked 4 expert tech investors how to invest in AI without getting sucked in by the hype. Here's what they told us.
That might feel familiar to investors who remember the hype around themes like the blockchain or the metaverse, which created hot buzzwords and hot stocks for short periods, but haven't yet transformed the business world, to say the least. AI itself isn't new technology, but the excitement around it has clearly reached a new level.
"Fads and themes are really common in technology," mutual fund manager Matthew Moberg told Insider. He's co-managed thefor 18 years and handily outperformed most of his peers for the long term."A lot of really great, impressive new technologies don't have a cash register. They just don't have a very good business model attached to them. Blockchain's a great example of that.
Still, tech investors feel that AI could be attached to an enormous cash register because it can help companies find valuable patterns in data that humans might never be able to see, or work much more quickly and cheaply in jobs like coding, customer service, and design. Wedbush analyst Dan Ives, a famed tech-stock bull, says ChatGPT and AI could be worth about $150 billion in value toIn their"Big Ideas 2023" report, growth investors at Ark Investment Management say that if AI is adopted in 100% of possible uses in 2030, it could increase global labor productivity by $200 trillion. It says that amount is roughly equal to the projected GDP of the entire world that year.
Insider spoke to Moberg and three other fund managers in tech about how they're investing in AI's potential at a time that a lot of money seems to be chasing a small number of stocks.One popular approach to investing in AI involves buying technology that numerous companies working in AI will have to use instead of trying to find a tiny"pure play" that might win big years from now.
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