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The 2 Biggest Risks AI Stock Investors Fear Most (It's Not What You'd Expect)
Yahoo Finance· 2026-01-13 15:05
Group 1 - The core sentiment among investors is bullishness towards AI technology, with 62% expressing confidence in strong long-term returns from companies heavily investing in AI, and 93% of current AI stock and ETF holders expecting robust returns [1] Group 2 - Data quality and security are significant concerns for investors, with 49% highlighting these issues as risks associated with AI investing, particularly regarding how companies train their AI models and manage data [4][6] - AI models' accuracy is directly tied to the quality of training data, and low-quality data can lead to AI hallucinations, which can have serious operational consequences [5] Group 3 - Valuation risk is another concern, with 43% of investors worried about the potential overvaluation of AI companies, especially given the high P/E ratios of notable companies like Nvidia (46), Microsoft (34), and Palantir Technologies (415) [8][9] - Despite high valuations, many AI companies are innovative and rapidly growing, as evidenced by Nvidia's record revenue growth and substantial order backlog [10]