How to Invest for an AI Boom, AI Bust, or...Both: These ETFs Can Help.
Key PointsWhich ETF to buy depends on what you believe about the future of the AI boom.
I've been investing in the stock market for over two decades. In all my years as an investor, I can't recall a time when so much hinges on a single question about the markets: Will the artificial intelligence boom turn out to be a profitable venture for investors? Major tech firms are investing billions in AI data centers, chips, and other infrastructure to create advanced AI models that could eventually become lucrative business tools.
If this AI boom thesis turns out to be accurate, AI might bring about a new era of productivity and increased corporate profits. This would likely be a boon for shareholders of major tech stocks in the Nasdaq-100. However, what if the AI boom is nothing but hype and overvaluation? What if AI ends up being another dot-com bubble that eventually bursts, leading to a prolonged bear market for stocks?
If the AI bust thesis proves correct, it might make investing in bonds a more appealing option for the future.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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