Over half (55%) of investors surveyed believe artificial intelligence (AI) will have a positive impact on the stock market over the next 10 years, according to recent research by The Motley Fool. But opinions vary widely by age.
Surprisingly, it’s millennials, not Gen Z, who are most bullish about AI. Nearly three-quarters (73%) expect a positive impact, compared to 66% of Gen Z, 61% of Gen X, and 46% of baby boomers.
Image source: Getty Images.
Younger investors are more familiar with AI and AI tools, which is likely a big part of why they’re bullish. A Deloitte study found that 76% of Gen Z and 58% of millennials have used stand-alone generative AI tools, such as ChatGPT and Claude. The numbers are much lower for Gen X and baby boomers — 36% and 20%, respectively.
It’s hard to say for sure why more millennials than Gen Z expect AI to positively impact the market. One possibility is that because millennials have been investing longer, they’re more likely to have benefited from AI stocks in their own portfolios. Even the youngest millennials have been adults for over a decade, and the oldest are in their 40s. Those who have been investing for five years or more have had plenty of time to score outsize returns from the right AI company.
For example, millennials who saw the role Nvidia (NVDA +0.34%) GPUs played in early AI development may have bought shares as a calculated bet on its growth potential. Nvidia was also a popular video game investment because of its graphics cards. Investors who bought Nvidia five years ago would be up 1,220% (as of March 31), and returns like that would probably make a person quite bullish on AI.
Today’s Change
(0.34%) $0.59
Current Price
$176.34
Key Data Points
Market Cap
$4.3T
Day’s Range
$171.38 – $177.15
52wk Range
$86.62 – $212.19
Volume
2.5M
Avg Vol
181M
Gross Margin
71.07%
Dividend Yield
0.02%
In all likelihood, millennials are most bullish on AI because they use it regularly and have either invested in it personally or seen the kind of returns AI companies can generate. Nvidia is the biggest example, but many other businesses have also grown rapidly during the AI boom.
Lyle Daly has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
