Investing In AI
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- Опубліковано 20 тра 2024
- There is no question that we are in an artificial intelligence revolution and this is going to touch on all of our lives. The question is: How do we invest in that trend? In this video, I discuss AI’s applications and Nvidia’s amazing results. I talk about valuation and also show you some alternative ways to invest in AI.
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Timestamps
00:00 Introduction
00:41 Applications
07:33 Nvidia
12:44 Investing in AI through thematic ETFs
15:32 Investing in AI through Semiconductor ETF
17:33 Overpaying for AI
19:00 Conclusion
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DISCLAIMER
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I'll stick to food, beverage, industrial and retail stocks that I can understand. I'm quite confident that as a species we'll still need food, drink, materials, clothing & footwear going forwards.
You couldn't possibly! Those sectors got wiped out by the internet. They no longer exist anymore. All companies that once formed infrastructure or served utility needs have evaporated now.
Sticking to my basic all world funds and avoid tweaking for anything. Worth noting the whole market ticked up when nvidia announced data.
Emerging Markets Asia etf (CEBL) is also a good alternative for semiconductor exposure...
Around 18% of the fund is semiconductor manufacturers if we include Samsung.
Also gets exposure to probable future AI boom in China through IT companies such as Tencent & Alibaba. The fund is also currently relatively cheap. A great long term investment I believe.
thank you Ramin. Sensible, informed and intelligent - still one of the best investment advice on UA-cam : )
Glad it was helpful! @winthir
Ramin, great content as always. Who would you look at as a pure semiconductor company and stepdown transformer company to invest in ? Thx Paul Dubai.
Loved hearing how you are utilising AI. Thanks for making your content relatable and accessible :)
Many thanks Ramin for spreading the knowlegde. Are there any semiconductor etfs that are GBP denominated so that we do not have to pay additional fees in addition to the expense ratio and the platform fee which we use for investment ?
It would be more accurate to call it a processing power gold rush. The people making bank off AI aren't the guys who post realistic renders of Shrek, it's the guys who make better more specialized processing units for AI stuff. Now it's NVIDIA, but their empire is built on CUDA which is at its core just a piece of very specialized software, and there's no reason other chip manufacturers won't be able to catch up at some point very soon.
Top work please keep the content coming Sadly i find that AI and Crypto rather bewildering much as i try to grasp the both of them Im hoping that content such as yours provides clarity in the future for me 😮😮
Interesting 👍
a global or s&p 500 index fund gives you exposure, all companies will adopt this technology if it has a meaningful use 👍
The adoption of the Ai curve ball will change the landscape of business more than we know. So if we can't predict the winners the index funds will be the winner imo
Thank you Ramin!:)
No problem 😊 @andreaisonline
Excellent content today. I studied ai and invested in that wisdom tree etf for two years and closed it out. My conclusion were the same as yours. Looking for the non nvidias :)
Curious to what have you found?
Thanks for sharing! @raykingston4354
@@marsbruno9831 I would hate to recommend but doing as he did is what I am doing. Look at the etf and drop some into the bottom half. Focus on chip production. All it takes is one to survive the decade. A lower risk one is asml with a pe of around 50
I just wanted to say that I love that thumbnail. Great job!
That’s what Berkshire’s secret purchase was.
Thanks! @ReneSellmann
Renaissance Technologies, and some other firms, effectively runs AI, that is software that decides when to buy and sell...human hands off except for developing the algorithms, some of which are learning and adapting for better performance. Hard to beat their results...
Groq may well be a company to watch in the AI space. Private at present I believe but will presumably come to market before too long
Great Video! What is your opinion on Factor ETFs? They do have a higher TER than FWRG.
Edit: The day they miss their targets, the market is going to have a serious pullback. :(
I considered a semiconductor ETF then bought a S&P 500 and US IT sector ETFs.
Great insight on Ai
Learned a lot from this video
Will sure take your points ❤
Great to hear! @dino69xsx
The app you use to generate graphs, you said was called "Barely"? I ask as I can't find it by searching for it :S
Go look back at the video where he is showing the AI generated GCSE Maths examples.
Would a Nasdaq 100 ETF be a good alternative.
Very interesting Ramin. What goes up must come down… at some point
Benjamin Graham's voting machine, weighing machine analogy comes to mind here.
Pullbacks, yes. Crash, possibly. Long term? Up and to the right.
Is Radeon still going? Used to be them vs Nvidia graphics card when I was gaming.
Amd bought ati.
Not sure I'd take that NVIDIA revenue breakdown at face value, other than indicating business line. In particular, "gaming" is a bad label because many retail sales of their non-datacentre cards will have been for mining Ethereum and doing ML (in academia and business, not just enthusiasts)
Polar Capital Trust AI fund? High fee but good returns?
92% of AI chips are made by one company - tsmc.
AI chips has to be advanced (< 7nm) manufacturing process, so it’s not average semiconductor manufacturer.
3:35 - Bing’s copilot also does sources
Great overview. I'm keen to get a piece of the action here but as stated, the AI (and related sectors) do seem to be over-valued currently, so I'm waiting before I jump in. Annoyingly I was close to buying NVidia shares 3 years ago, just because I liked their GPUs when I was building gaming rigs...if only...!!!
1999 - "How to invest in the Internet"...
True, still if you just bought the nasdaq100 at the very top in that year, you'd still 4x your investment in 20-24 years.This is without DCAing, adding anything along the way, just bought NASDAQ at the very top...not bad!
Software software software
Sound advice. I bought Intel big when their price recently crashed because of some unexpected poor figures. A week later I am already reaping good rewards. AMD are also heading in the right direction.
Ramain. I think you should develop a course on AI algorthimic trading. What do you think?
If algorithmic trading has got us to this point in the global markets with average returns of circa 8 to 11%. I think it is fair to assume that with greater computer power and smarter trading algorithms via AI average returns will increase
No need for pink blobby traders then 🤔
If Gavin Williamson's algorithms were anything to go by, it will be a disaster.
Without humans, there'll be no risk premium and no excess return 😢
Outstanding! As always.
Thanks again! @LuxusHauserGroup
LLMs are on steriods, at the moment I think the SC industry will be crazy in the next few years, SCMI, NVIDIA and the like qill do well, but there're so expensive. SORA is a game changer for real.
Awsome video
Thanks @aqibhanif6626
Ooh Matrices.
Just buy QQQ and S&P.
On Freetrade can you purchase fractional shares in an ISA account?
No fractional UK or EU shares on freetrade. US stocks, yes.
Avoid at all costs, a quick search on here UA-cam for a comparison with other similar trading apps will explain to you better than I can why. Basically the name Freetrade is a contradiction being more expensive than it’s closest rivals, higher FX fees, many stocks behind a monthly pay Wall, not profitable so risker than others, and many other reasons that the comparison videos go through.
Yes
what companies are actually making these large language models, I understand Nivida is an enabler who makes chips rather than actually making these large language apps
If we wanted 'transport as a service' we would hire a taxi rather than own and drive cars.
I think a lot of younger people have little interest in owning a car, it’s odd we have these very expensive “assets” sitting around doing nothing, and for the urban dweller they are often not where you want them. If you can just summon a vehicle to turn up wherever you are and you drive it or it drives you, I think traditional car ownership is going to seem a very old fashioned idea.
Thank you Ramin, great content, as always!
My pleasure! @hjanabi1424
I liked your personals examples of AI use at the start. Helped me better understand the application.
My advise is don’t complicate this sort of thing, being an innumerate dyslexic type, who got into university when the system was designed to keep people like me out in the early 1980s , to read History, I saw Ai coming a long way off. Since history is a good training to understand innovation and economics I saw it a long way off.
Just pick a decent fund, look at its record and get in. That’s it. Don’t agonise too much about fees. A decent fund and your in.
Sorry about my hurried repetitive note, half way through trying to peel some potatoes. Good luck everyone.
so what's next?
Copilot uses GPT4.
Theta is my AI play.
Freetrade lol 😂
What's wrong with freetrade
@@GavinLawrence747 It's not free.
Yup, I tried Freetrade for a few months, what an absolute shocker of a platform!
@@GavinLawrence747 My reply was deleted not sure why? Anyway a quick search on here UA-cam for a comparison with other similar trading apps will explain to you better than I can why. Basically the name Freetrade is a contradiction being more expensive than it’s closest rivals, higher FX fees, many stocks behind a monthly pay Wall, not profitable so risky than others, and many other reasons that the comparison videos go through.
lol yeah. Loves the videos but think he should be more selective on sponsors.
i bought 400,000 AGIX in 2020 at 1 cent each. Its 90 cents today. Why? Because it was an AI project in a decentralized crypto ecosystem. And the CEO is a genius who wears a dolphin T shirt, and isnt in it for the money. There are so many great AI lifechanging opps out there. Healthcare AI will be a HUGE market.
Ben looks like a mad professor, but he knows his stuff.
IBM should be a winner
remember IBM?
Never kept up with world, tried to do everything.
sounds too familiar@@coderider3022
The big difference between Cisco's customers and Nvidia's, is that Cisco's were nearly all dud companies which didn't even make money. Nvidias biggest customers are the likes if Microsoft, Google etc etc etc. Its a different time.
Bing Chat is not too bad either
I didn't peg you as a gamer Ramin. Can we look forward to a Pensioncraft twitch channel?
Perhaps :) @daverichardhadley
Gaming will always be important.
As if money will exist in another 10 years 😂
AI is somewhat scary. Thinking about when and if it becomes more intelligent and makes its own decisions.
yes it rips away at the human soul
@@qed456 We love that sort of thing as a species.
I saw that film……
Microsoft didn’t buy ChatGPT. They’ve invested in OpenAI.
I do have concerns about the markets ability to deal to real-time driven AI ETF and funds.
Imagine some form of dynamic fund that, rather than just holding a weighted "the world" or US, dynamically looks for market risers and fallers, automatically buys into the risers, automatically dumps the fallers, no human intervention, very low fees. Imagine a predictive algorithm that was pretty good at what it did and regularly returned 30% or so. You can see investors buying into such an ETF, even if its just 10% of their funds. 10% is low risk from a fund or SIPP pot perspective but, accumulated, the AI funds themselves become extremely powerful and influential.
When these AI's determine a sell-off scenario you can imagine it potentially triggering a world-wide avalanche. There are pressure valves in place for regular investment tools, but are they sufficient to handle an AI-smart sell off (which is aware of those valves and will have code to do its best to put its investors first and circumnavigate them).
We have software doing this now of course, but just not this fast and not operating on huge funds.
AI is blahblah right now !!! Nothing much for the people... All about infra right now...
Yeah, Im not looking forward for the "you own nothing" future when you dont own a car but can "just call it up"🤣I imagine this sort of suggestions is one of the things that's leading to politicians like Trump and others to power.
AI will cure a lot of health problems hopefully, it will be good and bad for society I think 🤔
First
Woo-hooo
Your mum will be proud 😂😊
In the future, the ai will be first every time :(
I hope the Chinese will come to the rescue and flood the market with AI chips... Tired of this profiteering from these American companies.
Didn’t they pass a semiconductor law to promote US investment and discourage foreign chips ? If trump is president again, he will put back all his trade restrictions