Artificial intelligence (AI) is becoming increasingly popular and has captured the imagination of investors.
Analyst Brian Jankowski names six stocks he’s now betting on for long-term AI investing.
“I think there’s no denying that AI is the future,” says Jankowski.
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Artificial intelligence (AI) is becoming increasingly popular and has captured the imagination of investors. However, the hype surrounding AI now seems to be leveling off as its novelty fades.
AI believers shouldn’t worry about this shift in sentiment. One analyst believes that even a small step backwards for the burgeoning technology will, after several steps forward, set the stage for future success.
“If you look at the big picture, I think we’re moving more towards using AI. But there will be times when there’s just overhype,” Brian Jankowski, a senior analyst at Fort Pitt Capital Group, said in an interview with Insider. “And I think that’s just human nature.”
The abilities of the AI give her staying power – even when the hype dies downcht
Investors are always looking for the “next big thing,” according to Jankowski. It can be a popular trend like the introduction of electric vehicles, an innovation like Blockchain, you give the Metaverse or trade a major development in the markets, like that recent collapses of regional banks like the Silicon Valley Bank.
“Storytelling is usually the driver of stock prices or company returns,” says Jankowski.
What separates AI from fads is its utility. Jankowski said he’s excited about ChatGPT-3 — OpenAI’s chatbot — and its ability to complete complicated tasks like writing code in seconds. A newer version, released in mid-March, is even more advanced.
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“ChatGPT-4 has performed amazingly,” said Jankowski. “It’s not just rumination — it’s capable of constructing some pretty meaningful thoughts and outcomes.”
Unsurprisingly, the hype surrounding artificial intelligence has sparked feverish rises in stocks linked to the technology — even if the connection is flimsy. For example, troubled media company BuzzFeed quadrupled in value(BZFD), after it was announced in late January that some of his articles written by AI instead of humans would become. Two months later, the stock gave up those gains.
This shows that while the AI tide is rising, it’s not necessarily raising all boats.
“I think there’s no denying that AI is the future,” says Jankowski. “The only question is: How can you take advantage of this?”
Six AI stocks to buy
Jankowski answered his own question by presenting six AI-focused stocks he’s bullish on. While each stock offers a slightly different value proposition, they all have one thing in common: their size.
“We’re more focused on large companies that are using AI capabilities to improve their business productivity,” said Jankowski. “So big companies that use them, roll them out and adapt them.”