Investing in artificial intelligence companies... opportunities and risks
The rapid developments witnessed in various artificial intelligence applications and technologies enhance the interest of investors from all over the world to invest in technology stocks and companies, especially in companies that develop plans and programs related to (AI) to benefit from the opportunities and returns it offers, given the description of that sector as... "Locomotive of the future."
While artificial intelligence technologies are considered to be still in their infancy, despite their tremendous development, investors who are waiting for the opportunity to seize gains are keeping the shares of artificial intelligence companies in mind because of their future that heralds broad profitable returns, whether in the short, medium, or long term, and in comparison to what they achieve. Companies with great successes in recent periods.
For many “individuals,” it may seem ambiguous, in terms of identifying the opportunities and risks offered by artificial intelligence companies, and in light of concerns about a repeat of the previous “dot-com bubble” that occurred at the beginning of this century.
In this context, analysts, in separate statements to the “Eqtisad Sky News Arabia” website, monitored a set of advice for investors (individuals) wishing to invest in technology companies in general, especially those related to artificial intelligence technologies, in terms of identifying opportunities and risks, as follows:
- Good market study: Research and study about technology companies and those working in the field of artificial intelligence and understand how they work and their potential growth.
- Diversifying investment: It is always recommended not to put all of the investor’s available funds into one stock, as investments must be distributed among several companies in order to reduce risks.
- Understanding the technology: The investor should try to understand how the technology in artificial intelligence works, and how it can improve operations in various industries.
- Following the news: The investor must be constantly informed of the latest developments in the field of artificial intelligence and how they affect companies.
- Financial advice: It may be a good idea to use a professional financial advisor to help make investment decisions.
- Long-term investing: Investments in artificial intelligence may require time to achieve returns, so the investor must be patient.
- Technical and Fundamental Analysis: Using technical and fundamental analysis to evaluate stocks and make decisions based on that.
They pointed out that "investing in stocks involves risks, and there is no guarantee of permanent profits. Therefore, the investor must be careful and invest according to your financial goals and his own level of risk.
Engine of growth and development
First, the CEO of Vi Markets in Cairo, Ahmed Moati, advises investors during the current period to invest in shares of artificial intelligence companies. Because these companies are “the next future,” as he described it, noting that major technology companies have increased their expenditures in research and development in the field of artificial intelligence, because it is considered the locomotive of development in the United States of America and the entire world.
The financial markets expert explains, in exclusive statements to the “Eqtisad Sky News Arabia” website, that the United States of America and major countries have come together to adopt regulatory rules for these technologies in light of concerns related to privacy and security risks, pointing to America’s awareness that the field of artificial intelligence will take it to a new breakthrough in The global economy, and Washington is trying to achieve leadership in artificial intelligence, especially electronic chips.
Moati cites the breakthrough achieved by NVIDIA, which is one of the largest companies in the world in designing and producing processors.
- The stock of the leading maker of chips used in artificial intelligence technologies, Nvidia - the best performer in the S&P 500 this year according to FactSet data - rose 190 percent in the first half of 2023.
The financial markets expert points out that the advantages of investing in artificial intelligence stocks are due to it being the leading field in the coming period, and that the investor will continue to reap profits accordingly, warning traders against the consequences of risking all their money in the stocks of technology companies alone, and that an average must be set. Price: “If the price falls to a price support area, the trader buys shares from a new area...etc.”
- Golden Man Sachs estimates indicate that the value of private sector investments in artificial intelligence technologies is expected to reach $158 billion by the year 2025, and reach $110 billion by the end of 2023.
- The same estimates indicate that the next three years are likely to witness an increase in the volume of investment in this sector by more than 70 percent compared to the current situation.
Great demand from customers
In addition, financial markets expert, Dr. Hanan Ramses, said in exclusive statements to the “Eqtisad Sky News Arabia” website, that investment in artificial intelligence companies is witnessing a widespread and significant recovery in the world, especially in the American and Chinese stock exchanges, and the shares of these companies are enjoying rapid demand. Of those dealing in the field of financial technology, noting the difference in dealing in artificial intelligence from one stock exchange to another.
The financial markets expert explains that artificial intelligence is spreading in all fields and sectors (..) and this development will move technology to another level, and will be reflected in the future vision of the shares of those companies.
While at the same time, Ramses points out that the problem with artificial intelligence companies in the United States of America lies in the fact that many of them are emerging companies and need financial support, in addition to her fear of the impact of the monetary tightening policy followed by Washington, because they (the companies) need to constantly update and develop and try To enable these companies as much as possible to achieve their goals.
At the same time, she confirms that during the coming period, artificial intelligence will achieve a huge breakthrough in the world of finance, if it is used optimally, and citizens are made aware of its benefit and the strategies and foundations of trading in the shares of these companies, because lack of knowledge of what is being dealt with leads to confusion in the scene and makes dealers unaware of the impact. The positive and negative aspects of this vital field.
