AI stocks have become increasingly popular in recent times, triggering a tech stock revival. But is it a sustainable trend or just another investment bubble waiting to burst? Let's delve into why AI stocks are gaining attention, and consider some promising investment options.
The rise of AI stocks
AI stocks took the investment world by storm in the fall of 2023, with chatbot ChatGPT leading the charge. This innovative tool allowed users to interact with AI and find answers to nearly anything, from creating codes to birthday party planning. The massive AI boom has led to a resurgence of tech stocks, which had been on a downward trend for years.
AI stocks: Bubble or sustainable investment?
The million-dollar question now is whether the AI stock boom is a bubble waiting to burst or a sustainable investment strategy. Investors are advised to learn from past bubbles to avoid falling into a similar trap. A smart approach would be to invest in companies that have been in the technology and AI sectors for a long time, such as Microsoft and Alphabet. They have the resources to invest and execute AI strategies effectively.
While big names like Microsoft and Alphabet are obvious choices, Canadian firms OpenText and Kinaxis are also noteworthy. Both have been involved in AI for years and have been expanding their AI capabilities. OpenText, for instance, has released several new AI options recently, while Kinaxis uses its 'Rapid Response' services to leverage AI in identifying and addressing potential problems quickly. Though not as 'exciting' as some new AI startups, they offer a more stable and long-term investment opportunity.