TECH - Nvidia Isn't The Only AI Contender Fidelity Suggests Investors Look Beyond 'Hot AI Stocks': 'Names That Are Big Today May Not Be The Winners Of Tomorrow' | Benzinga
The AI sector is currently the hottest in the market, and Fidelity International is advising investors to consider indirect plays in addition to the obvious choices, such as NVIDIA Corp (NASDAQ:NVDA).
What Happened: Fidelity International, a financial services firm, has suggested that investors explore other avenues to capitalize on the AI boom. The firm highlighted that AI’s benefits may not be immediately apparent to investors in certain stocks, reported CNBC on Thursday.
"Rather than focusing on so-called hot AI stocks – because names that are big today may not be the winners of tomorrow – investors may consider the many indirect beneficiaries, or diversified businesses, where the benefits of AI may not be immediately obvious to investors," Fidelity said in its report.
These indirect AI plays include semiconductor foundries, packaging technology companies, and memory companies, according to the firm’s report. Fidelity also drew parallels between the current AI hype and the dot-com bubble, suggesting that the AI sector may follow a similar trend.
Despite Nvidia’s significant gains, Fidelity pointed out ...