Nvidia's AI Boom Risks Bubble; Safer Bet May Be Diversified ROBO AI-Robotics ETF
-
Nvidia has benefited greatly from the AI revolution, but may be in a bubble due to lofty expectations, pricing power declines, and customers developing their own AI chips.
-
History shows that next big thing investments often enter a bubble phase where growth expectations aren't met.
-
Rather than buying Nvidia stock, a smarter approach is an AI-focused ETF like ROBO Global Robotics and Automation Index ETF.
-
ROBO ETF provides exposure to AI but also robotics and automation, so it would be partially insulated if an AI bubble bursts.
-
ROBO ETF is highly diversified across 77 stocks so doesn't carry single stock risk like buying Nvidia.