The Only 2 Artificial Intelligence (AI) Stocks I'd Buy With $1,000 Today and Never Sell
2026-10-06 12:33
•Marc Guberti •The Motley Fool
••••• ••••• Axe Cap view
Two AI Stocks Worth Watching — But Not Here
AI hype stokes gains abroad, yet South African investors need a cautious lens.
The AI boom in the US tech sector is undeniable, with companies like Netlist posting sharp gains thanks to patent wins and revenue from royalties. Meanwhile, Iren targets AI data centre growth with hefty contracts. Despite this, South African investors should be wary about direct exposure to these niche plays. The JSE doesn’t list comparable pure AI plays, and the rand has been volatile against the dollar (USD/ZAR) as global tech stocks swing. Naspers and Prosus remain our closest proxies for global tech exposure, but their AI plays are less focused and more diversified internationally. If US tech slows or global sentiment sours, the rand could weaken further, pressuring South African asset prices. This view may be wrong if South African tech accelerates AI adoption faster or if rand strength surprises. this is just our opinion and not financial advice
Avoid chasing niche US AI stocks OTC here; instead, maintain exposure to Prosus for a broad gateway into global tech. Watch USD/ZAR closely for shifts that could impact returns.
- USD/ZAR
- Prosus
- US tech regulatory crackdown
- Rand depreciation beyond current forecasts
6/10
An investment analyst recommends two AI stocks for long-term holding: Iren, a neocloud company building AI data centers with a 5,800-megawatt pipeline and contracts with major tech companies, and Netlist, an OTC-traded memory chip company winning patent litigation battles that generate substantial royalty revenue.
Our take is based on reporting first published by The Motley Fool.