Artificial intelligence (AI) investing is not the hottest sector in the market right now. It's selling off a bit due to a hot inflation report that could prompt an interest rate increase. An interest rate increase could cause some companies to borrow less to build out AI infrastructure due to higher interest costs, slowing overall progress. That's the prevailing line of thinking in the market right now, but it's extremely short-sighted. While an interest rate hike could be coming, the reality is that nothing is stopping the AI build-out. Many AI hyperscalers plan years in advance for how they will spend their money, and as long as there is still massive demand for new AI technology (and there is), this space will be a great one to invest in. Image source: Getty Images.
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