AI stock investment is booming, and if you’ve been living under a rock, it might be time to peek out. The market is bustling with hope—or maybe just greed, depending on your perspective. Among the glittering stars of AI stocks, one especially stands out as a potential game-changer: Upstart Holdings.
With a focus on underbanked communities, Upstart is not your usual tech giant, yet it’s performed eerily well. A whopping 44.8% growth over the last year? Not too shabby for a company that started as an AI lending marketplace.
Now, let’s not forget SoundHound AI and its 42.3% jump. They’ve hitched their fortunes to voice-based AI products, working with the likes of Hyundai and White Castle. Yeah, you read that right—Fast food and fancy cars.
Meanwhile, NVIDIA is flexing some serious muscles, projecting a revenue leap from $4 billion to an expected $61 billion in 2024. With data center demands reaching unprecedented levels, the company’s growth trajectory seems unstoppable. It’s clear that the appetite for AI hardware is insatiable.
But here’s the kicker: the “Magnificent Seven.” They’re not just cool superheroes; they represent nearly 35% of the S&P 500 market cap and have driven most returns since early 2023. Talk about power.
Yet, here lies the rub—investing in individual AI stocks is like playing roulette with your savings. Algorithmic trading accounts for approximately 70% of trading volume in the U.S. stock market, indicating how prevalent technology-driven strategies are in this ever-evolving sector. High risks come along with the high potential returns. Smart folks recommend limiting your exposure to about 10% of a diversified portfolio. Individual AI stocks makes sense, right?
And if you’re too chicken to pick individual stocks? No problemo. AI-focused ETFs can lend a hand. They offer safer bets on the AI boom without making you sweat bullets over single stock performances. Some even leverage algorithms to help you make a decision—good luck keeping track of that algorithm when it changes daily, though.
