6 AI Stocks to Bet On, According to Portfolio Manager Overseeing $1B

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AI stock picks: A portfolio manager overseeing more than $1 billion shares 6 firms he's betting on — and how to spot opportunities without getting caught up in the hype

But from an investing standpoint, plugging money into an asset solely based on its exposure to AI isn't necessarily a smart approach, considering prior manias like the dot-com and crypto bubbles, he says. This mania feeling has started to manifest with AI in recent months, with, for example, soaring 307% in January on news that the company would use AI to create content, which would boost profit margins. The stock is down 75% since.

That's not to say Fisher doesn't see investing opportunities around AI. To combat the hype, Fisher gave recommendations for having a sound investment process.First, he said to look at stocks and sectors of the market that one is bullish on outside of AI. There are some specific metrics Fisher likes to look at when identifying good investment prospects. One is the number of employees per dollar of revenue, which as a barometer of productivity.

He also recommended going through documents like earnings reports and searching for mentions of AI and how the firm intends to use it.

 

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