Recently our CEO and founder, Mark Henry, appeared on Money Matters with WCNC’s Jane Monreal to share his take on the AI stock boom. He explained that much like the demand for SpaceX shares, AI stocks were once all the rage which caused prices to skyrocket, but now investor sentiment has shifted causing prices to drop significantly. The major concern is that AI is growing too fast and far too much money has been invested with no immediate returns. 

AI related tech stocks were already volatile but then corporations like Alphabet, Meta, Microsoft, and Amazon committed a combined $2.3 trillion dollars toward AI creating what experts are calling a bubble. The massive spending on AI infrastructure is nearly four times more than the current global market valuation of artificial intelligence.Should the AI bubble scare investors away from buying AI related tech stocks? No, we don’t believe it should. 

AI is not going away, it’s going to continue to grow, but you should never put all your eggs in one basket. Investors like Larry Ellison have done that and learned the hard way. If you watched the interview with Mark, he shared his method of trickling money into a particular stock at regular intervals over time instead of investing a large amount at one time. This investment strategy is referred to as dollar-cost averaging which allows you to buy more shares when prices are low and less when prices are high. More bang for your buck, if you will. 

If you need investment guidance, we’re here to help. Not only does our CEO have a deep knowledge of investing, and our team at Alloy Investment Management specializes in educating clients and building custom portfolios designed around their goals. Call us at 800-689-3539 to schedule an appointment.