The tech sector (XLK) has gained 25% since the start of 2024, driven by gains related to artificial intelligence (AI). Bokeh Capital Partners, founder and chief investment officer Kimberly Forrest, joins Brad Smith on Wealth to discuss her AI investment strategies going into 2025.
"I wouldn’t say [the current AI-related market] is necessarily a bubble, but I think you really have to be careful about just throwing money at the same old places that you did last year because technology needs different things as it rolls out, and this is going to be a longer rollout than anybody who’s currently investing and has won so far, is really prepared for," Forrest says.
She tells investors, "Pace yourself and understand that the technology is going to mutate a little. Right now, Nvidia (NVDA) is the big winner, and they have a GPU chip, but it seems like Broadcom (AVGO) has a solution for another part of the problem, which is inference. So maybe you want to look for companies like Marvell (MRVL) and Broadcom that are doing that are adding to the solution."
Forrest notes, "I wouldn’t kick Nvidia to the curb. You know they are still doing very well, and their product is needed. It’s just that you may lose momentum."
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