Investing in Artificial Intelligence (AI) Stocks is BS

We thought we’d have some time before the artificial intelligence bubble starts forming but it looks like things are getting a bit out of hand. We pointed out before the 5 biggest artificial intelligence startups (all unicorns) and remarked that now there are somewhere in the range of +1,500 startups that are selling some sort of “AI powered” solution. According to our favorite voice of reason, Anand at CB Insights, “it’s becoming clear that if you have a website, you are now AI“. Of course Anand’s company also puts out the most interesting “CB Insights AI 100” list which shows us that there are lots of “there” there. We couldn’t be more excited by the prospects of AI so now we want to “invest in artificial intelligence stocks”. The problem is, there really aren’t any.

Of course, you wouldn’t know that based on what all the pundits are saying. Every single time there is an emerging technology theme that starts gaining some traction, the likes of Motley Fool, Jim Cramer on CNBC and people of his ilk start rambling on about all the ways you can invest as retail investors. We like to call this “investing in everything with Google“. Don’t be fooled. Let’s take a look at what everyone is saying about “how to invest in artificial intelligence by buying artificial intelligence stocks”.