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Look beyond Nvidia (NVDA) and diversify in AI for long-term wealth


June 17, 2024 ( Newswire) Look at the wider AI ecosystem - not just at giants like Nvidia - to build long-term wealth, affirms the CEO of one of the world's largest financial advisory and asset management organizations.

The comments from Nigel Green of deVere Group come as the chipmaker's stock continues its remarkable rally, pushing its valuation past $3 trillion, and making it an even bigger presence in the S&P 500.

He says: "Over the last 12 months, chipmaker Nvidia has experienced a remarkable 200% rise in its share prices, capturing the attention of investors worldwide.

"This meteoric increase underscores the pivotal role that the AI giant plays in the sector.

"However, focusing solely on giants like Nvidia may not be the most strategic approach for investors aiming to build long-term wealth.

"Instead, a broader view of the AI ecosystem is your best option for sustainable growth of your capital."

While Nvidia's innovations in GPU technology have been instrumental in advancing AI capabilities, numerous other companies are making significant contributions to the AI ecosystem.

"These companies operate across different segments, including software development, cloud computing, data analytics, and AI-driven services. By diversifying investments across this broader ecosystem, investors can mitigate risks and capitalize on multiple growth avenues," notes the deVere Group CEO.

New startups and smaller companies are constantly emerging with groundbreaking technologies that have the potential to disrupt the market.

For example, companies specializing in natural language processing (NLP) are making strides in developing sophisticated language models that can transform industries like customer service, healthcare, and finance. Investing in such companies will provide exposure to niche markets with high growth potential.

Moreover, the infrastructure supporting AI development is another critical area for investment. Cloud service providers are essential for AI research and deployment.

Nigel Green says: "These companies offer scalable computing resources and AI tools that enable businesses of all sizes to integrate AI into their operations. Therefore, investing in these cloud giants is likely to offer stability and consistent returns, given their central role in the digital economy."

Additionally, the AI ecosystem includes numerous firms focused on data management and analytics. "As data becomes increasingly valuable, businesses that can effectively manage and analyze large datasets will be at the forefront of the AI revolution."

Investors should also pay attention to companies that provide the hardware necessary for AI applications.

"Beyond Nvidia, other semiconductor companies are investing heavily in AI-specific chipsets. These components are crucial for enabling the computational power required by the tech's algorithms.

"By including these hardware providers in an investment portfolio, investors can gain broader exposure to the fundamental technologies driving AI advancements."

He concludes: "Nvidia's success highlights AI's enormous potential, but focusing solely on the titans is likely to mean missed opportunities to build long-term wealth."

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 offices around the world, over 80,000 clients and $12bn under advisement.

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