Over the last couple of weeks, we've asked market pros where they fall on the AI bubble argument and how to invest accordingly. Some warned of downside for tech stocks. Others said they still like the AI trade, but recommend hedging it with other parts of the market.
00:00We spoke to eight investors about whether they think a bubble is forming in AI and how they think people should invest around that outlook.
00:06Our reporting identified three main themes.
00:09The first is the so-called picks and shovels AI trade.
00:11This goes outside the hardware companies you might normally associate with AI, like NVIDIA or AMD.
00:17Think industrial stocks, the companies that make the construction equipment used to build data centers.
00:21The second theme is looking outside the U.S. for international opportunities.
00:25We collected recommendations for Japanese small cap stocks as well as European value stocks.
00:30And third, the investors we spoke to said to stay positive on hyperscalers like Amazon, Microsoft and Meta, which have gotten pushback lately over CapEx spending plans.
00:40Our sources told us that these companies still have bulletproof balance sheets and won't have to take on debt to build data centers, which gives them a big advantage.
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