{"id":1078360,"date":"2026-05-29T14:40:28","date_gmt":"2026-05-29T18:40:28","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=1078360"},"modified":"2026-05-29T16:45:42","modified_gmt":"2026-05-29T20:45:42","slug":"does-ai-think-you-should-invest-in-ai","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/blog\/does-ai-think-you-should-invest-in-ai","title":{"rendered":"Does AI think you should invest in AI?"},"content":{"rendered":"

Few other industries have captured investors\u2019 attention like artificial intelligence (AI). The AI market is projected to grow more than 25% annually to a value of $1.3 trillion by 2032, largely thanks to businesses harnessing AI technology. In the U.S. alone, the industry is expected to generate over $75 billion in value this year.<\/p>

Many investors are eager to pour cash into major AI companies like SpaceX, Anthropic and OpenAI, which are expected to go public this year and reach record-setting valuations.<\/p>

Skeptics argue that the AI market is an overhyped bubble that won\u2019t be profitable any time soon, given the massive capital required to build and maintain its infrastructure.<\/p>

But with some of the biggest IPOs in history looming on the horizon, the fear of missing out may be taking its toll.<\/p>

Is AI a good investment? We went straight to the source and asked ChatGPT, Perplexity, Gemini, Claude and Grok for an answer. This is what the AI chatbots had to say with the average, long-term, medium-risk individual investor in mind.<\/p>

Is AI a good long-term investment, or is it just short-term hype?<\/h3>
Summary:<\/strong> Perhaps unsurprisingly, chatbots agree that there is long-term value to be gained in AI investments, although individual companies may still be subject to short-term hype and overvaluation.
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All but Perplexity referenced the internet bubble of the 1990s as an example of a comparable time period in which technology changed the economy, but resulted in some companies failing or getting overpriced.<\/p><\/div><\/article>

ChatGPT<\/h4>

\u201cAI is probably best viewed as a promising long-term trend with some short-term hype layered on top\u2026 the key question is not whether AI will matter\u2014it likely will\u2014but how to gain exposure without taking excessive risk.\u201d<\/p>

Perplexity<\/h4>

\u201cAI looks more like a long-term theme than a pure short-term fad, but the investable part is still very uneven. The technology has real adoption and productivity potential, yet many AI-related stocks already reflect high expectations, so returns can be volatile and highly valuation-sensitive.\u201d<\/p>

Gemini<\/h4>

\u201cThe short answer is both. AI is fundamentally changing the global economy for the long term, but the stock prices of companies tied to it are experiencing a massive amount of short-term hype\u2026 the technology will mature and succeed, but many individual stock prices will suffer a harsh reality check along the way.\u201d<\/p>

Claude<\/h4>

\u201cThe honest answer: probably both\u2026 The underlying technology is already generating measurable revenue and productivity gains\u2014this isn\u2019t purely speculative like some past hype cycles.\u201d However, it notes, \u201cMany AI-related stocks are priced for a very optimistic future, meaning a lot of the expected growth is already baked into today\u2019s prices.\u201d<\/p>

Grok<\/h4>

\u201cAI is a strong long-term investment theme, not just short-term hype\u2026 AI represents a genuine multi-year productivity driver similar to past transformative technologies (electricity, internet). However, it carries risks of volatility, high valuations, and execution challenges\u2026 It\u2019s not guaranteed smooth sailing\u2014corrections are normal and healthy.\u201d<\/p>

Are AI investments currently overvalued?<\/h3>
Summary:<\/strong> Ironically, chatbots owned by some of the biggest players in the AI industry are aligned on the risk that Big Tech stocks are (or may soon be) overvalued, although they agree that the overall industry still has growth potential.
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ChatGPT and Perplexity diplomatically declined to name names. But Gemini boldly called out Micron for having \u201crecently surged into the trillion-dollar club on AI chip optimism\u201d and Apple for \u201ctrading at a jaw-dropping $4.5 trillion market cap.\u201d<\/p>

Claude observed that Nvidia has traded at historically high P\/E ratios, while Grok notes that some supporters believe the valuations of giants like Nvidia and Broadcom are \u201creasonable given growth.\u201d<\/p><\/div><\/article>

ChatGPT<\/h4>

\u201cSome AI investments may be overvalued, but it depends on the company and the investor\u2019s time horizon.\u201d<\/p>

\u201cMany large AI-related stocks have risen sharply because investors expect strong future growth from artificial intelligence\u2026 Established companies with strong profits, diversified businesses and real AI-related revenue may be better positioned than speculative startups or smaller companies riding the AI trend without proven business models.\u201d<\/p>

Perplexity<\/h4>

\u201cYes\u2014many AI-related stocks appear overvalued, especially the most crowded large-cap winners, but \u2018AI\u2019 as a theme is not uniformly overpriced.\u201d<\/p>

\u201cThe most obvious valuation pressure is in the big AI beneficiaries, where investors have bid up prices far ahead of proven earnings power in some cases.\u201d However, Perplexity notes that \u201csome infrastructure, software, and chip companies may still have room if revenue growth and margins continue to expand.\u201d<\/p>

Gemini<\/h4>

\u201cThe short answer is yes, by traditional metrics, many pure-play AI investments are heavily overvalued right now.\u201d<\/p>

\u201cWe are currently seeing classic signs of a late-stage hype cycle\u2026 The S&P 500\u2019s forward P\/E ratio is hovering around 23x to 24x, which is significantly higher than its historical long-term average of around 16x. The technology sector itself is much higher\u2026 the vast majority of standard businesses have yet to see a material impact on their bottom line. The stock market has priced in the victory before the game has truly been played.\u201d<\/p>

\u201cThe underlying AI technology is real, but current stock prices have assumed absolutely flawless, uninterrupted hyper-growth.\u201d<\/p>

Claude<\/h4>

\u201cThe short answer: by most traditional measures, yes\u2014but context matters a lot.\u201d<\/p>

\u201cPrice-to-earnings (P\/E) ratios for many leading AI-related companies are significantly above historical averages.\u201d That being said, \u201cOvervalued doesn\u2019t mean \u2018about to crash.\u2019 Expensive stocks can stay expensive\u2014or get more expensive\u2014for years, especially when the underlying earnings growth is real and accelerating.\u201d<\/p>

\u201cThe market can be simultaneously expensive and right about the long-term trajectory.\u201d<\/p>

Grok<\/h4>

\u201cAI investments are trading at elevated valuations in mid-2026, but they\u2019re not universally \u2018overvalued\u2019 in a classic bubble sense for long-term investors.\u201d<\/p>

\u201cS&P 500 forward P\/E is around 22\u201323x\u2014above its long-term average,\u201d which is roughly 18\u201319x) \u201c\u2026 but well below dot-com bubble peaks,\u201d which was roughly 24\u201340x in 1999\u20132000. \u201cEarnings have largely driven recent gains (not pure multiple expansion), which is a positive differentiator from pure hype cycles.\u201d<\/p>

\u201cNot a bubble like 1999 for most core holdings, but valuations are full\u2014meaning future returns may be more moderate than the last few years, with higher chance of 20\u201330% drawdowns along the way.\u201d<\/p>

What are the best AI stocks and ETFs to buy right now?<\/h3>
Summary:<\/strong> AI chatbots aren\u2019t qualified investment advisors, and, ultimately, the best AI investments<\/a> to buy right now depend on each investor\u2019s varying goals, preferences and risk tolerance.
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While information from chatbots shouldn\u2019t be taken as personal financial advice, AI can still summarize investments that might be worth looking into for the average, long-term retail investor with a medium risk tolerance.<\/p>

Every chatbot surveyed mentioned the Global X Artificial Intelligence & Technology ETF (AIQ)<\/strong>, and all but Grok mentioned the Global X Robotics & Artificial Intelligence ETF (BOTZ)<\/strong>.<\/p>

When initially prompted, Grok only listed ETFs, declining to list any AI stocks due to the high risk posed by \u201cconcentration, valuation swings and company-specific issues.\u201d Other chatbots encouraged avoiding start-ups and speculative, trendy stocks in favor of established leaders like NVIDIA (NVDA)<\/strong>, Microsoft (MSFT)<\/strong>, Broadcom (AVGO)<\/strong> and Alphabet (GOOGL)<\/strong>.<\/p>

Long-term, medium-risk investors shouldn\u2019t allocate more than 20% of their portfolio to AI, according to Claude and Grok, while Gemini puts the maximum allocation at just 10%.<\/p><\/div><\/article>

ChatGPT<\/h4>

\u201cFor most investors, broad market ETFs already provide meaningful AI exposure through companies like NVIDIA, Microsoft, Alphabet, Amazon and Broadcom.\u201d<\/p>

ChatGPT notes that \u201cthe \u2018best\u2019 AI investments are usually the ones that combine strong businesses, broad diversification, reasonable costs and staying power\u2014not the most speculative AI startups.\u201d<\/p>

ETFs to consider:<\/p>