Accessing the breadth of AI-related investments
Why investing in both public and private artificial intelligence companies may offer advantages.
- Artificial intelligence (AI) has become a component of equity market returns and a potential source of economic productivity gains that could benefit several industries other than technology.
- That said, the speed of adoption remains an unknown partly due to regulatory concerns, which means any broad contributions to overall economic productivity could be years away.
- The large, publicly traded companies that are developing AI technologies represent just a portion of the total number of investment opportunities related to AI.
- Investors in AI can benefit from private equity, which typically involves acquiring a stake in companies with high growth potential that are not traded on public exchanges.
- Fund managers with access to both public and private AI companies can evaluate the full competitive landscape, including infrastructure, foundation model, and application companies.
Investment & Retirement Products
Meet the unique financial needs of your clients with our diverse investment and retirement offerings.
Learn more
Fidelity Portfolio Quick Check®
Analyze, compare, and optimize your investment strategy in minutes with our free on-demand digital portfolio analysis tool.
Learn more
References to specific investment themes are for illustrative purposes only and should not be construed as recommendations or investment advice. Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk.
Because of its narrow focus, sector investing tends to be more volatile than investments that diversify across many sectors and companies. Sector investing is also subject to the additional risks associated with its particular industry.
The technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants, and general economic condition.
This content contains statements that are "forward-looking statements," which are based upon certain assumptions of future events. Actual events are difficult to predict and may differ from those assumed. There can be no assurance that forward-looking statements will materialize, or that actual results will not be materially different from those presented.
Information presented herein is for discussion and illustrative purposes only and is not a recommendation or an offer or a solicitation to buy or sell any securities. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
Investing involves risk, including risk of loss.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.