From CNBC: 2024-04-20 07:51:24

Artificial intelligence has been a game-changer in investing since ChatGPT’s debut in 2022. The Magnificent Seven tech giants boosted the market in 2023, but the Nasdaq dipped over 2% in 2024. Experts advise thorough research and diversification, with ETFs like BOTZ and AIQ offering lower-risk exposure to the sector.

Investors should pay attention to metrics like cash burn and government grants when selecting artificial intelligence stocks. Traditional stocks like Microsoft and IBM embracing digital trends may also be worth considering. Experts recommend diversified ETFs and caution against chasing hot winners in the market.

Recent volatility hit AI stocks hard, with Nvidia falling 10% and Super Micro Computer dropping 23% in one day. While ETFs like BOTZ and CHAT may lag top performers, they offer a less risky way to invest in AI. High trading volume, low fees, and reputable backing are key factors when selecting ETFs for exposure to AI.

ETFs provide lower-risk exposure to the AI market compared to individual stocks, offering a chance to capitalize on sector growth. Expert advice highlights diversification through ETFs like BOTZ and ROBT as a way to navigate the volatility in AI stocks and potentially identify future top performers in the market.

Read more: Investing in the AI theme for the long haul. How to pick the winners