Why the S&P 500 (VOO) Is My Favorite AI Investment

Everyone wants a piece of the AI action right now. It’s the new gold rush, and your group chat probably has at least one person claiming they’re “heavy into Nvidia” like they’re mining silicon in their garage.

The AI hype is real. Companies are racing to bolt it onto everything – cars, customer service, your fridge, your boss’s emails. It feels like if you don’t invest now, you’ll be stuck on the sidelines while everyone else gets front-row seats to the AI-powered economy.

But here’s a wild thought: Instead of guessing who’s going to win the race, why not just own the whole track?

The FOMO Is Real

Trying to guess which AI stocks will win long-term is like trying to guess which middle schooler will become a billionaire. Could be the kid with a lemonade stand… or the one who just ate glue.

Nvidia, sure, has already rocketed to the moon – and good for them. But what about the next batch? Most won’t make it. Some will flame out. Others will get bought, buried, or simply out-innovated by someone with a shinier demo video.

And that’s fine. You don’t need to play stock picker. The S&P 500 already does that for you.

The Index Has Entered the Chat

The S&P 500 is like the NFL of capitalism. You don’t need to know which rookie is hot this season. You just need to own the league.

And here’s the kicker – The biggest AI players are already in the S&P 500.

• Microsoft? In.
• Nvidia? In.
• Google? Palantir? Meta? All in.

And the next big AI company when it comes around – yes, it will also get added to the S&P 500.

AI Is Everywhere (Even Where You Least Expect It)

And it’s not just tech – AI is quietly sliding into every industry you can think of:

• Healthcare – AI-assisted diagnostics, drug discovery
• Retail – Personalized shopping, inventory prediction
• Finance – Risk modeling, fraud detection
• Logistics – Smarter routes, warehouse automation
• Manufacturing – Predictive maintenance, quality control
• Farming – Yup, even the tractors are thinking now. Next up: corn that negotiates its own harvest.

The S&P 500 has exposure to all of these industries. It’s not just about tech giants – it’s a giant AI sponge soaking up gains across the entire economy.

And here’s the key part: the real value from AI won’t come from flashy demos or viral headlines. It’ll come when AI quietly seeps into the real economy – making everyday work faster, cheaper, and better. That’s where the magic happens.

And if there’s one thing American companies are great at, it’s turning innovation into productivity. That’s exactly what the S&P 500 is built to do.

The Hype, the Hangover, and the Long Game

Now let’s be real: There will be a pullback. We’ve seen this movie before.

Remember dot-com stocks in the late ’90s? It’s always the same pattern:
🚀 Hype up
😬 Reality check down
📈 Long-term trend – up and to the right

We humans are great at overestimating what tech will do in the next 12 months – and terrible at grasping what it’ll do in the next 12 years.

AI will stumble. Headlines will shift from “AI Will Save the World” to “AI Has Gone Too Far.” Stocks will wobble. And through it all, the S&P 500 will keep quietly absorbing the long-term gains, booting out the fads, and compounding the winners.

In Closing

If AI is the next industrial revolution, the S&P 500 is the entire factory complex – from the person coding the robot brain to the company selling coffee to the robot’s maintenance crew. It’s like buying a ticket to the whole game, not just betting on one player.

So what am I doing? The same thing I’ve always done. I’m investing 90% of my savings in VOO — boring, beautiful VOO. The other 10%? That’s where I get to have fun and invest in things I personally like. But that 90% stays locked in with the S&P 500, quietly doing its thing while AI changes the world.