. But as was the case with the internet, that could take many years, and the final outcome may not be what investors are expecting right now. This is mind, some strategists are urging investors to proceed with caution around the technology.
Below, we've compiled quotes from strategists who are warning investors not to get caught up in the hype.Pride's main concerns lie in valuation levels and uncertainty around AI's ultimate impact. "While innovative companies may have attractive growth prospects, the price one pays for such investments is a key determinant of future returns and should be a major consideration for investors," he said on Monday.
"Additionally, it is not always obvious who the long-term winners of innovative disruption may be. For example, of the top-ten technology stocks at the peak of the Tech Bubble, only two remain in the top ten today," he continued."Investors should tread carefully around hot tech trends, as the price one pays for them is a key determinant of future returns."Landsberg is worried about the speed with which AI has captured the imagination of investors.
"The AI excitement is becoming irrational," he said on June 1."To see the market caps of AI-related stocks rise by hundreds of billions of dollars in a matter of weeks is worrisome, especially since it remains unclear exactly how these companies will monetize artificial intelligence.""We will be trimming a great deal of our profits in AI-related stocks over the next few weeks, as many of these stocks are up over 100% so far this year.