4 Things That May Surprise You About Investing in AI

Key Takeaways

AI has quickly moved from experimental to a technology reshaping markets and the global economy.

Big Tech leaders like NVIDIA, Microsoft, Apple, Alphabet, Meta, Amazon, and Tesla are betting billions on AI to stay ahead.

AI is spreading far beyond tech—into communication services, consumer products, and even utilities and industrials building the infrastructure for data centers.

Investors need to understand how the risk-reward dynamics differ between the “builders” of AI (i.e. chipmakers) and the “users” (i.e. software developers).

History shows that not every company tied to a big trend wins—so investors should focus on the direct players most likely to capture real revenue and productivity gains.

Remember the euphoria of the late 1990s? Every company with a “.com” in its name suddenly seemed destined for greatness. Of course, not all of them made it—but the ones that did changed the world.

Artificial intelligence is today’s equivalent. What was once just speculation about AI’s impact on a few industries has become near-certainty that it will fundamentally reshape human life and the entire global economy.

1. AI Leaders May Prevail Over Fast-Moving Tertiary AI Stocks

Let’s start with the most obvious player in this space: Information Technology. Today, the IT sector makes up more than a third of the S&P 500 Index, with its biggest names all deeply tied to the AI build-out.

• NVIDIA is the clear bellwether, selling the GPUs, a specialized processor designed to handle complex visual and mathematical calculations, that power the vast majority of AI models.
• Microsoft buys many of those GPUs and rents them to customers, including AI industry leader and ChatGPT developer OpenAI (for which Microsoft is also a large equity owner).
• Apple’s path forward hinges on whether AI can transform the iPhone experience in meaningful ways.

Beyond these giants, most tech companies—from semiconductor suppliers to enterprise software firms—have at least some exposure to AI. A diversified semiconductor company might design power chips for NVIDIA’s servers. Many software companies are developing AI features with a goal of upselling current customers. Hardware suppliers are scrambling to build AI-first PCs and servers. Technology services businesses consult with clients about AI and help to implement and maintain these services.

2. AI Capex is Huge

The influence of AI doesn’t stop at the IT sector. Communication Services giants Google (Alphabet) and Meta are weaving AI into advertising auctions, targeting, and content delivery. Their capital spending tells the story: Meta plans to nearly double its year-over-year capex to approximately $70 billion while Google’s AI investment is projected at $91 billion — an amount that, on its own, matches the combined capex of Exxon, Chevron, Walmart, General Motors, and Ford.

3. AI Is Affecting More Industries Than Just Tech Stocks

Consumer companies are also in the mix. Amazon is integrating AI into cloud computing, e-commerce, logistics, and advertising. Tesla is chasing ambitious applications like autonomous driving and robotics. Even in industrial corners of the market, companies are benefiting from the rush to build AI data centers. Utilities, construction firms, equipment makers, and power suppliers are all part of the ecosystem.

Put the pieces together, and you start to see just how broad the footprint has become. All of this to say, the trajectory of AI matters significantly to the economy and the market.

4. AI Builders and AI Users Are Mutually Dependent

With so many angles to consider, it helps to break AI into two broad groups:

The builders of AI: chipmakers, cloud providers, and infrastructure companies that supply the computing power.

The users of AI: software firms, consumer platforms, and enterprises embedding AI into their products and services.

Both groups matter, but they present different risk-reward dynamics. Builders can benefit from surging demand, though history suggests cycles of oversupply are inevitable. Users may see slower adoption curves, but when adoption hits, the revenue and productivity impact can be longer-lasting.

For investors, the question becomes not just who is exposed to AI, but where the exposure creates durable advantage.

Some investors may be tempted to chase every company that might benefit indirectly from AI. But history offers a caution.

Think back to the rise of e-commerce: countless retailers, logistics providers, and service firms were touted as “beneficiaries.” However, it was Amazon that built its own logistics network, expanded categories, and grew Prime into a moat, while the “tertiary” beneficiaries of e-commerce disruption struggled to capture meaningful value. The same dynamic may play out with AI. The clearest opportunities may come from those building or directly using the technology, not from every adjacent industry that touches it.

What We’re Watching In the AI Era

Capital intensity. We’re paying close attention to the extraordinary levels of spending flowing into AI infrastructure. When a single company’s capex rivals that of multiple industrial giants combined, it raises important questions about sustainability, competitive advantage, and long-term returns on those investments.

Enterprise adoption curves. AI isn’t rolling out evenly. Some firms are already capturing benefits, while others are waiting for features to mature or regulatory clarity to improve. That staggered adoption creates opportunities for companies that can deliver proven, reliable AI tools—and risks for those that promise too much too soon.

Sentiment versus fundamentals. We’ve seen before how enthusiasm for disruptive technologies can lift valuations far beyond what the fundamentals justify. With AI, we’re monitoring how much of the upside is grounded in measurable revenue and margin improvements versus how much is driven by narrative alone.

For us, the takeaway is clear: AI is here to stay, and its trajectory matters—for the market, for the economy, and for long-term investors like Dana. Our job is to keep asking the hard questions, separating promise from reality, and positioning portfolios to capture opportunity without losing sight of fundamentals.