On the stock market, stocks linked to the theme of artificial intelligence (AI) are currently generating strong enthusiasm from investors. But, should we invest with our eyes closed?
+238.9%: this is the progression, last year, of the action of the American company Nvidia, one of the main manufacturers of electronic chips for players in artificial intelligence (AI). And, this spectacular increase continues at the start of 2024, since the value of this title has already almost doubled in value since January 1.
Investor enthusiasm for AI
It must be said that investors’ enthusiasm for artificial intelligence can be explained by the sector’s growth prospects. According to Bloomberg Intelligence, AI-related spending is expected to reach $1.3 trillion by 2032, an average growth rate of 42% over the next ten years.
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Moreover, the companies benefiting from this expenditure are not only those which provide this technology. Indeed, many companies, present in fields such as robotics, cybersecurity, education, finance, data centers, and even health, can also benefit from AI.
For the moment, on the stock market, investments have mainly focused on a limited number of stocks, notably on American technology companies, having integrated artificial intelligence into their development strategy. Among them, we can notably cite companies like Apple, Microsoft, Alphabet (parent company of Google), Amazon and Meta, some of which have seen their stock prices soar in recent months.
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A coming technological revolution
It must be said that according to Brice Prunas, manager of the Oddo BHF Artificial Intelligence fund at Oddo BHF AM, artificial intelligence is a silent revolution taking place before our eyes and which will transform all sectors of society and the economy.
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Moreover, despite the current enthusiasm of investors, the valuation of stocks in the sector would not be excessive given their future profit prospects. Thus, for the managers of Apicil Asset Management, talk of a current bubble around AI is largely debatable.
Turn to specialized funds
Nevertheless, to put all the chances on their side, it is recommended that a saver, wishing to invest in this investment theme, turn to a UCITS (undertaking for collective investment in transferable securities): a Sicav (Socits d’Investment) variable capital investment) or a mutual fund (FCP).
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Indeed, some management companies are now offering individuals the opportunity to position themselves on this investment theme through funds specialized around the AI ecosystem. Their advantage is to spread the risk over a large number of values, including in geographical terms.
However, despite the current enthusiasm for the sector, we must keep in mind that caution remains in order. To avoid any disappointment, remember that any investment in the stock market should only be considered over the long term, due to the volatility inherent in stock market investments.
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