AI Stocks

To be quite honest, the whole sector right now reeks of somewhat bubble type valuations. There are a lot of semiconductor plays exposed to AI that are not super overvalued, like for instance Broadcom (AVGO), it is held in our high yielding income model portfolio here.

However, if I was going to give myself exposure to this sector, I'd rather do it via an ETF like CHPS, SOXX, etc. I find when these sectors are being hyped to the maximum extend, picking the wrong horse in the race (individual company) can lead to some pretty devastating results.

Just keep in mind that although valuation can be ignored for a very long time, in some cases years, stocks tend to always revert back to what they should be valued at. I personally think the sector is going to have a very hard time satisfying current valuations over the long haul. Doesn't mean they can't go an additional 30%+ over the next year however.