Investors’ considerations of price in technology investments

Unlocking Tech Investment Opportunities with Artificial Intelligence: Wealth Managers and Analysts Advise on Valuations and Risk Management

Investing in technology can be expensive at the moment, with some US tech giants experiencing incredibly high valuations. However, there are ways for wealth managers and investors to access this opportunity while keeping valuation in mind. Dan Smith, senior equity analyst at Canaccord Genuity Wealth Management, suggests that investing in companies that facilitate artificial intelligence (AI) rather than pure AI companies can offer more attractive valuations.

On the other hand, Storm Uru, who co-manages the Liontrust Global Technology fund, is cautious about excessive valuations and sets target prices for the stocks he owns. If a stock exceeds the target price, he sells it unless the fundamental reason for owning the stock has improved. Uru believes that companies benefiting from AI, rather than being AI companies themselves, are worth investing in as this approach has become increasingly interesting to him.

Both experts emphasize the importance of considering valuation when investing in technology while also being aware of the potential for exponential growth. Timing when to invest and when to exit is a challenge for investors, but it’s crucial to maximize returns while keeping an eye on potential risks.

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