A Skeptics View about AI Fear of Missing Out
A Skeptics View about AI Fear of Missing Out
I try to adhere to an investment strategy of avoiding an all-too-common trap of Fear of Missing Out (FOMO). The latest craze to capture investors’ imaginations is the rise of artificial intelligence (AI). Echoing past frenzies – be it the past dot-com bubble, the rush into cryptocurrencies and blockchain, or the feverish embrace of FAANG and the Magnificent 7 technology stocks - this AI wave has all the hallmarks of a classic FOMO moment.
A recent exposé by The New York Times convinced me that today’s large language model (LLM) leaders possess no particular long-term competitive moat over other companies, aside from the sheer financial heft needed to fuel the computational engines that train these LLMs. In the high-stakes arena where Google, Microsoft, Meta, and other tech giants vie for dominance, no single contender boasts a financial upper hand significant enough to outpace the others.
Nvidia stands out as a notable exception, supplying the critical hardware infrastructure essential for LLM AI computations. Identifying tomorrow’s AI victors remains a challenge. However, a prudent first step in your investment research could involve pinpointing companies poised to either significantly leverage AI for driving incremental business growth or to forge entirely new market opportunities. Embracing this analytical framework will shield you from the seductive, yet perilous, lures of FOMO.
For questions, feedback, article ideas, or story contributions, email: RMcAdory@TaaSMaster.com
Disclaimer
TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.