AI development is accelerating — with some scientists suggesting machines will be more intelligent than the smartest humans within the next few years.

The Newest Artificial Intelligence (AI) Stock in the S&P 500 Is Up 370% Since 2023. Wall Street Says Avoid It.

Plenty of AI stocks trade down from their recent peaks, and the Nasdaq Composite, the tech-heavy index, hit an intraday peak on July 11. The index is down 5.5% from that peak after a recent recovery. Similarly, the VanEck Semiconductor ETF, which is led by the chip stocks that are key in the AI rally, is down 18% from its peak on the same day.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Nvidia, Serve Robotics, and Uber Technologies. The Motley Fool has a disclosure policy.

Amid the current artificial intelligence (AI) boom, a similar pattern could be developing. Already, several AI companies have split their shares, and more splits could be on the way among the others that are trading at lofty prices.