It started, as these things often do, with my uncle Gary. He’s always been an early adopter, mostly because he doesn’t understand things enough to realize they’re terrible ideas. Last year it was NFTs of digital rocks. Now? He’s convinced AI is going to solve his crossword puzzle habit. He keeps sending me links to companies promising “AI-powered synergy” and asking if I think they’re “good buys.” Honestly, it’s exhausting. And it got me thinking about the current AI frenzy – it feels a lot like the dot-com bubble, but with more hype about robots.
Everyone’s talking about trillion-dollar markets by 2031, which, let’s be honest, is a number designed to make you ignore the fact that nobody really knows what’s going to happen. Investing in AI isn’t necessarily a bad move, but it’s less about finding the next Apple and more about avoiding the digital equivalent of Beanie Babies. I’ve spent the last few weeks trying to make sense of it all, mostly to formulate a coherent response to Uncle Gary. It’s been… enlightening, if by “enlightening” you mean “slightly terrifying.”
What I’ve found is that the real money isn’t in the software itself – at least, not yet. It’s in the infrastructure. Think of it like a gold rush: everyone pictures the prospectors striking it rich, but the guy selling the shovels always does better. And right now, the shovels are high-speed data centers. Apparently, older facilities just aren’t equipped to handle the demands of this new technology, especially this “agentic AI” everyone keeps mentioning. It sounds like something out of a science fiction movie, but it basically means the AI is getting… demanding. Like a toddler who wants a second juice box.
Companies like Nvidia (NVDA) are benefiting enormously. Their GPUs are apparently the key to powering these systems, and they’re selling them as fast as they can make them. They reported record revenue recently – $57 billion. It’s frankly astonishing. But it’s not just Nvidia. Companies like Credo Technology Group (CRDO) and Astera Labs (ALAB) are providing the crucial components needed to build these massive data centers. These are the companies building the foundations, and that’s where the smart money seems to be.
The software side is trickier. ETFs are a good way to diversify, because let’s face it, picking the winning AI software company is like predicting the weather in Florida. Some will thrive, many will not. I’ve been looking at Palantir (PLTR) and BigBear.ai (BBAI) as examples. Palantir is doing well, largely because of government contracts – they’re essentially building AI systems for the Department of Defense. BigBear.ai, on the other hand, is struggling. Apparently, government funding can be fickle. It’s a good reminder that even the most cutting-edge technology is still subject to the whims of bureaucracy.
But the real long-term play, the stuff that keeps me up at night, is quantum computing. It’s still in its infancy, incredibly complex, and prone to errors. Apparently, the basic building blocks of these computers, “qubits,” are incredibly delicate. It’s like trying to build a house of cards during an earthquake. But if they can solve the error problem, quantum computers could unlock a whole new level of processing power. IBM (IBM) is aiming to deliver a fault-tolerant quantum computer by 2029. It sounds ambitious, but if they pull it off, it could be a game-changer.
IBM is also a solid, reliable company with a history of paying dividends. It’s not flashy, but it’s the kind of stock that lets you sleep at night. Nvidia is also playing a role in this space, bridging the gap between quantum and classical computers. They seem to be everywhere, which is either brilliant or terrifying, depending on your perspective.
So, what have I learned? Investing in AI isn’t about chasing the latest hype. It’s about finding the companies that are building the infrastructure, solving the hard problems, and providing a solid return on investment. And it’s about ignoring your uncle Gary when he asks if you think a particular stock is “going to the moon.” Because, honestly, most of them aren’t.
Read More
- 39th Developer Notes: 2.5th Anniversary Update
- Gold Rate Forecast
- Here’s Whats Inside the Nearly $1 Million Golden Globes Gift Bag
- The Hidden Treasure in AI Stocks: Alphabet
- TV Pilots Rejected by Networks
- The Labyrinth of JBND: Peterson’s $32M Gambit
- USD PHP PREDICTION
- 20 Must-See European Movies That Will Leave You Breathless
- The Worst Black A-List Hollywood Actors
- You Should Not Let Your Kids Watch These Cartoons
2026-01-18 19:42