RJ Hamster
AI Stocks Soaring—Prepare for the Volatility Test
| UnsubscribeYou Don’t Need Fancy AI Tools to Spot This Signal (From Street Ideas)AI Stocks Are Surging—But Volatility Could Be the Next Big TestWritten by Bridget Bennett on November 5, 2025 Key PointsAI stocks have delivered explosive returns in 2025, but market history suggests that periods of rapid innovation often come with sharp volatility.Analyst Dan Ferris believes AI is the biggest wealth-creation opportunity of our time—but warns investors to focus on fundamentals, not hype.Investors should prepare for potential market swings by holding quality companies with strong cash flow, sound balance sheets, and durable business models.It’s hard to open your phone or turn on the news without hearing about AI. It’s the buzzword of the decade, and maybe of our lifetime. From chatbots and driverless cars to data centers and chip manufacturing, artificial intelligence isn’t just a tech trend anymore—it’s a full-scale market movement.And while some investors are celebrating jaw-dropping gains, others are quietly wondering: how long can this last?Stansberry Research’s Dan Ferris believes we’re still early—very early. He calls the rise of AI “the biggest wealth-creation event in human history.” But he also offers a sobering reminder: massive innovation often comes with massive volatility.Quiet Tickers. Strong Signals. Here’s What’s Brewing… (Ad)The final stretch of the year is packed with uncertainty — but while others guess, smart traders focus on verified market activity. Our free Small-Cap Signals Guide shows how to spot early momentum shifts, identify small caps with breakout potential, and understand the setups analysts are watching now.Get your free Small-Cap Signals Guide todayAI Will Touch Every Stock You OwnFerris says AI will eventually “find its way into every stock in your portfolio.” The comparison to the internet is obvious—and accurate. Just as the web reshaped every industry in the 1990s, AI is already transforming how companies operate, hire, and compete.Whether you own Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOGL), or even Costco (NASDAQ: COST), AI is already part of their growth story—improving efficiency, cutting costs, and opening new revenue streams.That’s what makes this such an exciting time for investors, but it’s also what makes it unpredictable. When every company aims to be an “AI company,” not all will reach the finish line.Booms Create Wealth; Bubbles Create LessonsFerris draws a familiar comparison to the dot-com era. Back then, investors poured money into anything with a “.com” in its name. The internet really did change the world—but many of those early companies didn’t survive long enough to see it happen.The same pattern could unfold with AI. “Times of great innovation are always like that,” Ferris explains. The businesses building the foundation of this technology—semiconductors, data infrastructure, and software systems—may not see profits right away, but they’re laying the groundwork for the next generation of growth.That’s why smart investors are looking at the builders of AI, not just the headline-makers.Missed the Last 10,000% Surge? Here’s Your Next Chance (Ad)Wall Street’s already moving while most traders are still reacting — powered by data and AI tools the rest of us don’t see. That’s why we built Fierce Free Alerts: real-time signal notifications that cut through the noise and trigger the moment smart setups start forming.Activate your free real-time trading alerts nowVolatility Isn’t a Flaw—It’s the FeatureMarkets move in cycles, and human behavior makes those cycles even sharper. When optimism takes over, stocks soar. When fear creeps in, they tumble. AI will be no exception.Ferris warns that passive investing—automatic inflows into the largest S&P 500 names—can amplify that volatility. When investors start pulling cash out instead of pouring it in, “the algorithm reverses,” he says. That’s when the market gets wild.In other words:Don’t mistake hype for stability. Don’t assume today’s leaders will stay on top forever.And don’t chase returns that have already happened.Volatility is part of the process. The trick is to be prepared for it, not surprised by it.How to Invest in AI Without Getting BurnedFerris’s advice for navigating the AI era is simple—but powerful:Stick to fundamentals. Look for companies with real businesses, not just buzzwords.Ask yourself:Do they generate consistent cash flow?Is their balance sheet strong?Do they have a product or service that’s truly essential?If the answer to those questions is “yes,” that company has a better shot at thriving—even when the market pulls back.Ferris also emphasizes the importance of diversification. Holding a mix of quality stocks, some cash, and even short-term Treasurys can give investors the flexibility to take advantage of future dips instead of fearing them.Innovation Is Inevitable—Preparation Is a ChoiceAI is already transforming the market—and probably your portfolio—whether you notice it or not. Expect dizzying highs and sharp corrections, just like during the internet boom.But if history is any guide, the investors who come out ahead will be those who stay calm, stay curious, and stay invested in businesses built to last.As Ferris puts it, “AI will touch every stock you own.” That’s not a reason to panic—it’s a reason to prepare. Because when innovation and volatility collide, opportunity follows for those paying attention.Read this article online ›Featured Stories:CrowdStrike Partners With CoreWeave But Investors Sell the NewsYou’ve Got to See This Pattern Before 2025 Picks Up… (From Stock Wire News)Amprius Technologies Signals Electrifying Growth in 2026Get Ahead with This Free Report! (From Stock News Trends)Dave Stock: 180% Gain + Q3 Beat = Breakout Setup?Cameco Stock Falls After Earnings, Why the Dip May Be a GiftAmgen Stock: New All-Time Highs Ahead After Earnings Beat Related Video: Did you enjoy this article? Thank you for subscribing to MarketBeat! 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