Investors have gone crazy for artificial intelligence (AI) stocks since the start of the year. That’s thanks to the popularity of chatbot ChatGPT. While the money flowing into AI stocks specifically will likely peter out in the coming weeks, AI as an investment concept isn’t going away.
Rather than speculate on a small startup company, it may make more sense to invest in a large, big tech company that’s working on the space.
One company that will likely end up being a big winner is Alphabet (GOOG). The parent company of search engine Google is already working on its own chat service dubbed Bard, which will be released in the coming weeks.
If successful, this could open up a new way for Google to provide search information and better deliver results to customers. Google shares have been knocked down by a quarter over the past year. They’re reasonably priced at around 18 times earnings.
Action to take: The company’s growth has slowed over the years as the internet has grown, and an investment in AI could lead to an improved surge in growth. Investors should look to add shares under $110.
For traders, the June $115 calls, last going for about $3.95, offer mid-double-digit gains on a move higher in Google in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.