An iridescent soap bubble floats against a dark background, with droplets escaping its rupturing edge

Investing

Why the 'next big thing' isn't always a great investment

Supersonic jets, laserdiscs and turbine cars were all the future once. Why a great story alone makes a poor investment case, AI included.

The prominence of artificial intelligence (AI) can't be denied. It dominates news headlines and has been a primary driver of stock market performance. You probably see applications of it every time you turn on your computer or smartphone, and new uses and capabilities are being created all the time.

For an investor, the practical question is: Does that make AI stocks a "can't miss" investment?

Before you assume the answer is "yes," when was the last time you flew on a supersonic airplane, watched a Philco TV set, or used a Commodore computer?

The history of products that were supposed to be the next big thing is littered with trends that fizzled out and first-movers that ultimately didn't make the cut.

Keep reading with All-Access

Get a wealth of educational content and powerful investing tools backed by a quarter century of research.