AI boom: don't miss out, but avoid the frenzy
May 30, 2023 (Investorideas.com Newswire) Investors must take a cautious approach to the Artificial Intelligence (AI) boom to avoid getting 'burned', warns a serial tech entrepreneur and the CEO and founder of one of the world's largest independent financial advisory, asset management and fintech organisations.
The warning from Nigel Green of deVere Group follows Nvidia last week shocking the stock market, posting better-than-expected results in its first-quarter earnings report and providing highly positive guidance for the second quarter.
Shares in the world's most valuable semiconductor company finished the session nearly 25% higher, adding almost $200 billion in market value.
The deVere CEO says: "The dazzling earnings from Nvidia have added more fuel to the already high-octane AI boom.
"The Big Tech earnings season was dominated by relentless AI detail.
"Now this turbocharged semiconductor firms' results are helping drive the explosion in interest in AI that started back in November 2022 when the Microsoft-backed chatbot ChatGPT took the world by storm. It currently has 1.3 billion users. It crossed 1 billion users in March, representing an increase of almost 55% from February to March. This makes it the fastest adopted technology in history."
It is because of the potential way that AI is expected to impact society and global business that Nigel Green now says that "AI stocks should have a place in most investors' portfolios."
Including AI exposure in an investment portfolio offers several possible benefits for investors, such as "potential strong returns, risk management, diversification possibilities, and future-proofing advantages because as the use of AI continues to grow and become more pervasive, those companies that fail to adopt this tech may be at a competitive disadvantage."
Consultancy PwC has stated that AI-related productivity savings and investments will generate $15.7 trillion worth of global economic output by 2030, almost equivalent to the gross domestic product of China.
However, the deVere boss also urges investor caution.
"AI is already changing the world in monumental ways and, naturally, investors don't want to miss out.
"But they must take a cautious approach to the AI boom to avoid getting 'burned," he affirms.
"Things are evolving fast and, as ever, there will be winners and losers in this boom."
Nigel Green suggests three tips for investors wanting to increase AI exposure.
"First, rather than rushing to back potentially over-valued, hot new start-ups, stick to the big tech groups.
"These companies have huge reserves of capital, which means they can invest heavily in the best research and development, plus they are diversified so they are more resilient.
"Second, a good fund manager who will help select winners from losers, allowing you to make informed, balanced decisions to build your wealth.
"Third, remember, the real AI benefits are coming down the line - we're still very early - so take a longer-term approach to investing in this disruptive, transformative tech."
AI is the future, says the deVere CEO, and we know from the past that early investors in innovative technologies often reap enormous rewards, but a 'buy everything' mindset must be avoided.
"Don't miss out, but exercise caution," he concludes.
t: +44 207 1220 925
Twitter: @PriorConsults
deVere Group is one of the world's largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.
More Info:
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
That's all it takes to get an article published on Investor Ideas - Learn More
