Please stay tuned for important disclosure information at the conclusion of this episode.

Welcome to Investing Insights. I'm your host, Ivana Hampton.

Excitement over artificial intelligence is spurring a once-in-a-generation tech spend.

Invidia counts several of its magnificent seven pals as customers buying a sophisticated AI

chips, and the world's most valuable company says it could earn even more if geopolitical

tensions between the U.S. and China East, but investors are debating whether the market is experiencing

an AI boom or AI bubble. How should buy and hold investors think about investing in AI?

Are there any undervalue stocks left? Dave Sikara's chief U.S. market strategist and Morning Star

Research Services and co-hosts of the Morning Filter podcast.

Welcome back to Investing Insights, Dave.

Well, thank you, Ivan. It's good to see you again.

Well, Nvidia recently wrapped up the Magnificent Seven's earnings season showing that AI spending is still strong.

What does this mean for the tech-driven stock market rally?

I think you have to look at the stock market in a much broader sense than just focusing on the Meg 7 stocks in and of themselves and

their performance. So AI spending, yes, still very strong. It's going to continue to be very strong

here in the foreseeable future. But for the most part, when we look at a lot of

those AI-related stocks, the valuations already incorporate that existing, you know, path that we see,

you know, for AI. So some of the stocks are a little overvalued, some are a little undervalued.

But for the most part, I would say that the market is pretty close to where our fair valuations are,

you know are overall.

Now, when I also think about investing for most investors, you know, usually start off with a very

broad portfolio, mutual funds or ETFs, you know, to get that broad stock market exposure.

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