What is the best way to play this AI wave?

by | Nov 1, 2023 | Resources | 41 comments

What is the best way to play this AI wave?

i’m extremely bullish on all this ai stuff and believe the bubble has barely started. I’m noticing a lot of these options premiums are extremely expensive on stocks like ai so was wondering what the best way to play this is. I have a feeling all of these stocks like C3, adobe, pltr, meta will be absolutely pumped from all of these ai announcements and forward guidance from earnings calls.

With calls being extremely expensive right now, what are some good ways to take advantage of the ai wave?

some of you may say that ai is all hype or whatever-just given the assumption that we are in a massive ai bull run and stocks will continue to be pumped from earnings and announcements, what are the best strategies to take advantage?

vertical spreads, leaps, far otm short/long dated calls?

edit: I was refering to mainly options strategies to play hype, not really looking for individual stocks/companies



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What is the best way to play this AI wave?


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41 Comments

  1. [deleted]

    [deleted]

  2. Turbiedurb

    NVDA three weeks ago.

  3. Richard_Snatch

    One strategy is finding scam tech companies in penny land that will inevitably boast that they are switching to AI. Then sell on the pop before the massive dilutions begin.

  4. the__storm

    Buy SPY (or even VT). If AI is truly transformative, the increase in productivity will benefit most large companies. If not you keep up with the market.

    Trying to pick individual winners at this stage is just degenerate gambling – the obvious “shovel” choices (ASML, TSM, NVDA, AMD) are already all pricing in a huge AI bull run. _Maybe_ AMZN or GOOG have some upside left in them, on the back of in-house hardware designs, cloud services, and DeepMind, but I wouldn’t bet on it. INTC is fucked in the short term but they might turn it around with a hail mary product like AMD did with Zen. Again I would not bet on it.
    At the other end of the spectrum, it’s too early to pick from the AI-only companies like C3. Eventually ML systems will get super complex and probably proprietary, like cloud infrastructure did, and winners will emerge, but for now the technology is moving so fast there’s no way to tell who will retain an advantage. Any large company or investor can put a team together with a couple million dollars and be less than a year or two behind.

  5. kleft123

    Ask chatgpt what to do

  6. Garweft

    Go back to January when there were good entry prices.

  7. Troflecopter

    ALL IN ON PALANTIR.

  8. whyshw

    Buying on pullbacks as long as the AI trend keeps trending up

  9. TheChestHairComeback

    Palantir

  10. hammer_416

    Pltr still cheap

  11. Big-Routine222

    C3.AI is my most recent one I want to jump on for options, but I also plan to buy shares in the various tech companies also

  12. VisualMod

    >There are a few ways to take advantage of the current AI boom:

    1) Invest in companies that are leaders in AI technology. Some examples include Google, Amazon, Facebook, and IBM. These companies are investing heavily in research and development for new AI applications and will likely continue to see strong growth in this area.
    2) Buy shares of small-cap or mid-cap companies that are developing innovative new AI products or services. These firms may be less well known but could offer investors more upside potential as they benefit from the growing demand for AI solutions.
    3) Consider investing in ETFs or mutual funds that focus on stocks related to artificial intelligence. This can provide exposure to a basket of differentAI-related businesses while reducing individual stock risk

  13. lloydeph6

    This reminds me of the electric vehicle bubble and the SPAC bubble, be safe guys

  14. Hopeful-Bit-1008

    Buy shares…

  15. spartanburt

    I thought there was no need to. My understanding was we just kick back and enjoy a new golden age of abundance and 15 hour work weeks.

  16. moose6one3

    Buy a Time Machine, go back 6 months & buy NVDA,MSFT & AMD calls. The move already happened, don’t chase the dragon

  17. picklepetec137

    My question would be, where do you work that AI isn’t going to impact you, for your opinion to be so bullish? I work in medical devices and the opportunity there is unthinkable. I know my company is heavily invested in AI, or else we are next in line to be a company of the past.

  18. HeisenBo

    Buy Nvda november 2022

  19. gqreader

    GOOG and MSFT and META

    Basically any company that has a huge base of users will benefit from the AI trends and use. Either forever locking down customers, driving new use cases for new customers, or powering their own money printer engine with how they serve up to the customers.

    The dark horse is who can take on NVDA with its own GPU designs. AMZN or GOOG might be bold enough…

  20. StimulAss69

    $PLTR!!!!

  21. BOBBY-FUNK

    I’m actually surprised Adobe isn’t pumping harder. There AI integrations into photoshop and others is absolutely changing the game for creative workers.

    Super undervalued imo

  22. Infinite-Carrot1664

    Not buy in. It is overhyped. Glorified google search.

  23. MackWheaton

    Find a commercialized photonics company with initial deals in AI and datacom, and whose datacom business, like 85% of all transceiver business, is with Chinese companies. Everyone and his uncle are trying to become AI chipmakers, you need to find a company that will drive the data via a packaged light source. Ancillary hardware, micro mirrors, optical interposers, etc will explode as these chipmakers and software engineers need solutions that can deliver the payload required at scale, cost and power efficiency. Ideally the company will have a share price under $5 the institutional threshold for really jumping on board.

  24. Spiritual-Truck-7521

    Create your own company. IPO while saying AI and future potential as many times as possible. Sell your shares, live on Bora Bora while remembering how you got there every morning causing you to smile.

  25. clockwork5ive

    3x QQQ

  26. newtypexvii17

    Best way is 3 weeks ago

  27. Ostrich6967

    Short it

  28. scatterblooded

    You’re probably too late

  29. Vast_Cricket

    You can try to short them w/ a longer expiration like 2024.

  30. AromaticGas260

    Puts. Best way.

  31. One-Supermarket-4309

    If you’re looking for the power of Theta, then I guess you jump into NVDA, but remember NVDA doesn’t make their own chips, so you can TSM picking up on a delayed factor.

    Another one that blew up for me is FN. Totally sold calls the day before after it bounced on no news….then went higher the following day….I have shares, but it’s not the same.

  32. timetopractice

    Long dated calls into 2025

  33. Charming-State-6470

    PANW Calls were cheap on Friday. I ended up buying at 31% IV, and I think they should move with the other AI stocks.

  34. redliter

    Microsoft will win in the end, that’s what always happens

  35. Littlejimmytwoshoes

    $PLTR I think is well positioned

  36. patricio87

    You’re already too late .

  37. peeparty69

    I worked on some Azure “AI” products at microsoft. what I can tell you is that most of it is just machine learning, or if it’s not that it’s complete marketing bullshit. Obviously go long on QQQ/tech in general, but don’t dump money into specific “AI” plays and expect for anything special to happen.

    we are hundreds if not thousands of years away from true, sentient, actual artificial intelligence. the hysteria right now around GPT and LLM’s is just so stupid, it’s literally just more machine learning. it will make conversational applications like chatbots, customer service etc more believable, but it’s not changing the world.

    remember how “web3” and NFTs were supposed to change everything and now nobody gives a shit? don’t fall for every new tech fad; just pile money into MSFT, AAPL, AMD, NVDA etc (or just QQQ) because they are always going to create value. And that value could be in AI, but they all do way more than that so you aren’t plummeting to zero once people realize that most AI is bullshit.

  38. Dry_Personality8792

    Reminds of lithium sector …

  39. 00SCT00

    An etf already popped up called CHAT

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