Seema Shah, chief global strategist at Principal Asset Management, and Brian Frank, CIO of Frank Funds, said Yahoo’s AI companies are likely overvalued at this point. told Finance Live (video above).
“We are big believers in the broader long-term vision of technology and, of course, AI is right at the heart of it,” Shah said. “Having said that, if you look at the broader market reaction over the last few months, I think there’s probably a bit of a bubble. It was delivered and I was able to meet him within a few months. ”
“I think you can see a bit of a setback in that bubble,” she added, noting that long-term AI will continue to benefit companies that get it right.
Companies like NVIDIA (NVDA) and C3 AI (AI) have made big gains in recent months as AI has become the tech industry’s biggest buzzword. But if you’re a retail investor, Shah said now may not be the best time to join the AI hype, at least for the big players in the space.
“These AI stocks and [underlying] “We think the technology will work,” Shah said. “I have to say that for an investor, at a price like this, of course for a company like NVIDIA, it’s not the best time to get involved, but there are other investors.” It’s a mechanism within the broader market where you can touch the technology together. ”
“I am optimistic that AI will actually increase employment.”
After all, tech companies aren’t the only ones to benefit from AI. Concerns abound that AI will take jobs, but there is reason to believe that AI will eventually improve rather than reduce jobs in every industry, driving productivity gains across the economy. Yes, Frank said, taking an “optimistic stance.” About the impact of AI on employment.
“We hear that various industries are applying AI to their jobs, and AI is actually making people more efficient,” he said. “It doesn’t necessarily put them out of work, it just makes them more productive. [create] It will also improve the quality of employment. It could be great for everyone. ”
Shah said AI could also benefit the economy as a whole, if regulators don’t stop innovation.
“The overall takeaway is that if technology can reach its full potential, it will lead to very significant productivity gains for the U.S. economy and the world as a whole,” she told Yahoo Finance Live. rice field.
But Shah says regulator oversight is a “major concern” and expects regulators to become more likely to get involved.
“I think this has been a concern for tech investors for years. We are just waiting to see how regulators respond to ever-advancing technology,” she said. “From our perspective, things don’t happen overnight, but as you can see, [more regulation] That’s the direction Congress is headed. For investors who have very high expectations of what technology will bring, there is a fear that regulation will set back some of it, and unfortunately it will bring down not only the tech sector but the broader market. Disappointment can occur. . ”
Ally Garfinkle Senior Tech Reporter at Yahoo Finance. follow her on her twitter @agarfinks and further LinkedIn.
Read the latest financial and business news from Yahoo Finance.
Download the Yahoo Finance app apple again android.
Follow Yahoo Finance twitter, Facebook, Instagram, LinkedInand YouTube.
