AI Fuels Millionaire Boom in the US

By: Keith Wagstaff · June 14, 2024 · Reading Time: 3 minutes

ChatGPT doesn’t print money. AI stocks, however, have been minting millionaires.

Last year, the U.S. saw 500,000 new millionaires in the United States, defined as people with $1 million in investable assets not including their primary residence, bumping the total up to 7.43 million, according to a study from tech consulting firm Capgemini via CNBC . That’s up by more than 7% from the year before, well above the increases seen in Asia or Europe.

The Rise of AI

The stock market fueled a lot of wealth growth. And companies integral to the AI boom, including NVIDIA (NVDA) and Meta (META), lifted up the market. Shares of NVIDIA, which builds the chips that power AI models, skyrocketed 239% in 2023, for example.

The AI boom hasn’t slowed in 2024, and while many are calling NVIDIA the industry’s poster child, there are many other companies jumping on the bandwagon. Earlier this week at its WWDC conference, Apple (AAPL) announced a slew of AI features coming to Macs and iPhones. French AI startup Mistral said on Tuesday that it raised $640 million from Nvidia, Salesforce (CRM), and other investors. The company is now valued at $6.2 billion, creating competition for ChatGPT-maker OpenAI, which is backed by Microsoft (MSFT). In other words, the industry is booming, and everyone wants a piece.

A Piece of the Pie

While tech stocks might not make you a millionaire, prudent investing consistent with your financial situation and goals can help you build wealth over time. Make sure you know your goals, timeframe, and risk tolerance, and keep in mind not to put all your eggs in one basket.

If investing seems intimidating, these five steps can help to get you started. Just remember that one hot stock might not stay hot forever.

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