Investors should be including artificial intelligence stocks in their portfolio as Big Tech prepares for an AI boom, says deVere Group CEO Nigel Green.
Green’s comment follows strong first-quarter earnings reports from a number of tech giants, including Microsoft, Alphabet, Meta and Amazon.
Green says: “Big Tech posted robust financial performance reports for first-quarter earnings. The pace of growth has picked up noticeably but the real story was the tech giants’ seemingly relentless mania for AI. Most of corporate America clearly think that this is the future.
“The importance of this cannot be overstated considering that just five tech companies have made up two-thirds of the S&P 500’s gains so far this year.”
According to Green, large tech companies are “fully aware of the enormous returns” that could be secured when AI takes greater effect over businesses and consumers. Green points to the soaring popularity of AI chatbot ChatGPT in recent months, which notched up 100 million monthly active users within two months of its launch.
Green says including AI exposure into an investment portfolio offers several possible benefits for investors, including potential strong returns, risk management, diversification possibilities and future-proofing advantages.
Green adds: “Of course, like any investment strategy including AI in a portfolio carries risk and requires careful consideration. Investors should seek professional advice before making any investment decisions.
“We believe that AI is the future and we know from the past that early investors in innovative technologies reap enormous rewards.”
