A New Investing Trend Is Emerging -- And Not Everyone Is Comfortable With It
It’s little secret that artificial intelligence (AI) models -- and the massive data centers required to power them -- are proliferating at a wild pace.
Beyond the wide-ranging ethical and employment debates taking place, the market itself remains hot yet turbulent. AI boosters gesture towards a future where productivity soars and human potential is further unlocked with these tools. Meanwhile, critics lament a loss of human capability (or even intelligence) while AI claims jobs previously occupied by a real person.
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In a late 2025 report, Forbes contributor Garth Friesen outlined the battleground between investment firms and mixed investor sentiment. Citing analysis coming from Barclays and Morgan Stanley, Friesen suggested that the oft-made comparison between the AI boom and the dot-com boom was that the former embodied a profitable “infrastructure revolution” as compared to the “speculative, often profitless” examples of the dot-com bubble.
And with Goldman Sachs at the time forecasting a growth in power demand tied to the necessary AI data centers at 175% to 300% by 2030 versus 2023’s benchmark, it’s easy to see why investors may be keen to hop about the AI train. Regarding the remaining skeptics, Friesen summoned Fidelity semiconductor analyst Jonathan Tseng’s remarks:
“So far, AI models continue to improve and productisation is proceeding rapidly. If that works, then everything else will work. Trying to claim that you conclusively know that AI doesn’t deliver value based on old data and old models is like looking at the Wright Flyer and deciding that mass air travel will never take off."
Recent Sell-offs May Hint at an AI Investing Peak, but That’s Certainly Not Set in Stone
In a more recent NPR piece penned by John Ruwitch, a significant sell-off of AI-related tech stocks was detailed. Nvidia and Google’s Alphabet took hits to their share prices on June 22, as did chipmaker Micron Technology. Fellow chipmakers AMD and Intel also saw dips of about 6%. Given the massive growth in share prices in the AI space, these losses pushed the entire Nasdaq index down by 2% in a single day of trading.
Gil Luria, head of technology research at investment firm D.A. Davidson, was quoted on the current state of the market.
"The market just continues to oscillate between 'AI is going to be great and increase productivity and all these companies are going to win,' and 'AI is a big waste of time and it's not worth the return on investment at all and this is all one big bubble,'" Luria said.
Ruwitch noted that while the AI investment sphere remained jittery – with some wondering if the market had already reached a maturation point, even as two major players in OpenAI and Anthropic consider IPOs (and show notable revenue generation) – the long-term ability of generative AI to generate consistent profits remained far from certain.
What Does the Future Look Like for AI Investments?
While the concerns are many – ranging from governance conflicts to concentration of influence to concerns about disruptive innovation rendering existing and new infrastructure obsolete – Fidelity made it clear that while investors in the AI market should remain vigilant, there was no need to buy into excessive fearmongering.
“While we continue to monitor the health of AI trends, we think it remains strong and, in some corners of the market, underappreciated,” strategists wrote, highlighting non-U.S. market opportunities as well as potential within various other sectors – including health care, professional services, industrials firms, and utility companies.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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