Should Investors Change Their Artificial Intelligence (AI) Investment Strategy After the DeepSeek Launch?

Artificial intelligence (AI) has been center stage for the past few years and has driven recent gains in the stock market. Eight out of the nine most valuable companies in the world are directly or indirectly investing in AI programs, and these companies also account for a large amount of the S&P 500, which is a weighted index. Although the index has 504 components at the moment, more than 30% is in information technology stocks. Apple, Microsoft, Nvidia (NASDAQ: NVDA), Amazon, and Meta Platforms are the five largest components.That means even if you're completely invested in the S&P 500, with no further diversification, you are well exposed to trends in AI.Many investors have taken that a step further and are invested in single stocks that create or harness generative AI technology. Nvidia and Palantir are two examples of AI stocks that have soared over the past two years -- 500% and 1,200%, respectively -- and investors who were prescient enough to see their potential have benefited enormously. But as AI stocks balloon in value, are investors putting too much confidence in their chances?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool