- Artificial intelligence may be overhyped at the moment, but Satori Fund founder Dan Niles says artificial intelligence isn’t really getting enough attention given its long-term potential. I believe.
- Like the internet, AI is “real” and “will change the way we live,” he said.
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Do you think artificial intelligence is overhyped? Satori Fund founder and portfolio manager Dan Niles agrees. Well, in a way.
Speaking at CNBC’s Financial Advisors Summit session, Niles said the answer to that question depends on whether you’re talking about the present or the long term.
“now [with] Every company on a conference call like this is like how many times you say ‘AI’ and the stock price reacts,” Niles said. “So there’s definitely a little bubble going on.” said.
But that’s what usually happens with new and powerful technologies, Niles said.
“We are in the early days of the hype being overdone as every company is trying to claim that they are AI winners,” he says.
But Niles said, like the internet, in the long term AI will be “real” and “will change the way we live.”
Niles predicts AI is actually ‘under-hyped’ [in the] long term. “
That means it could offer investors a lot of opportunities.
But just as thousands of companies went bankrupt during the dot-com bubble, many companies that touted the use of AI will not benefit from the technology and may not even survive at all.
“Yes, everything sounds great when it all comes out,” said Niles. “And then you’ll know who’s the real winner and who’s the loser.”
To avoid getting burned by the hype, investors want to make sure AI-powered companies have the financial stability and “good management teams” to withstand an economic slowdown, Niles said. It says.
“One thing investors should remember is that they need to consider valuations,” Niles said. “Valuation gives you a measure of the risk you’re taking on by buying a company.”
Investors should also consider that while AI can help certain aspects of a company’s business, it can negatively impact others, Niles said, adding, “So even after deducting revenue, …it won’t change much,” he said.
