Talking Point  

What tech stocks' volatility tells us about the future of AI

  • To be able to explain the reason behind recent volatility in tech stocks
  • To be able to explain the benefits of volatility to investors
  • To be able to identify the assets likely to benefit as AI develops further
CPD
Approx.30min
What tech stocks' volatility tells us about the future of AI
While AI is currently dominated by large-caps, its implementation could open up possibilities for small and mid-caps
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The artificial intelligence theme is dominated by mega cap companies.

They not only have the capital to invest in the infrastructure but also the ability to acquire smaller companies that have made, or look key to making, significant technological progress.

And while AI – an important driver of equities over the past 18 months – has led to an investment wave, in companies developing tech, not seen in decades, recent volatility among big tech stocks has reignited the debate about the viability and direction of travel for artificial intelligence

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This report, which is worth 30 minutes of CPD, will explain the causes of the recent volatility, how volatility affects investors, and other assets set to benefit as AI develops further.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Among the reasons for recent volatility in tech stocks, which of the following is the odd one out?

  2. According to Peter Garnry, why, in the short term, will volatility in the tech space increase?

  3. According to Chris Ainscough, which types of investors recovered the majority of the losses seen during the tech sell-off?

  4. True or false: Russ Mould says volatility is beneficial to investors because it gives them a chance to buy cheaply and sell expensively when others panic?

  5. Which types of assets are likely to benefit in the future as AI develops further?

  6. According to Rahul Bhushan, why do traditional valuation metrics fail to capture the full scope of opportunities presented by AI and other disruptive technologies?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To be able to explain the reason behind recent volatility in tech stocks
  • To be able to explain the benefits of volatility to investors
  • To be able to identify the assets likely to benefit as AI develops further

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