Early Apple Investor And Veteran VC Alan Patricof Warns Against AI Hype: 'Let's Tune In 12 Or 24 Months From Now'
Portfolio Pulse from Shanthi Rexaline
Veteran venture capitalist Alan Patricof, who invested early in successful stocks like Apple, warns against the growing hype around artificial intelligence (AI) companies. He advises investors to approach AI companies with caution as many are rushing into the AI space with valuations often reaching into the billions. He also highlighted the rush of companies entering the AI arena and suggested investing in a company that has effectively incorporated AI as a tool, rather than just buying into an AI platform. He mentioned Nvidia Corp. and Palantir Technologies, Inc. as examples of AI plays.
October 06, 2023 | 10:21 am
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POSITIVE IMPACT
Nvidia Corp. has emerged as a credible AI play according to Alan Patricof.
Alan Patricof's comments about Nvidia being a credible AI play could potentially boost investor confidence in the company, leading to a positive impact on its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Some investors question the credibility of Palantir Technologies, Inc. as an AI play.
The questioning of Palantir's credibility as an AI play could potentially lead to a decrease in investor confidence, negatively impacting its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) ended Thursday’s session at $39.26, down 0.48%.
The ETF's recent decrease in price could potentially continue in the short term due to the overall caution advised by Alan Patricof towards AI companies.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 60