Many investors talk up their desire to invest in these "picks and shovel" type enterprises, rather than seeking to pick the technology company winners. Indeed, NVidia is an example of such a business.

The challenge of such an approach may be that at the this comparitively early stage of AI's evolution, it may not even be obvious which types of infrastructure will emerge as nescessary.

In any case, given the risks and the complexity of knowing the winners with certainty, we continue to recommend a diversified and selective approach. The wave of AI has just arrived, and the game, as often happens in investments, will be won in the long term. As

frequently demonstrated by the past, playing the game intelligently seems to be the smartest thing to do, rather than charging headlong at the latest stock that rallies in response to the market deciding its a play on AI.

Giorgio Broggi is a Quantitative Analyst at Moneyfarm