Investing in emerging technologies is never for the faint of heart. These companies often trade more on potential than on current results, making them volatile and unpredictable. Breakthroughs in semiconductors, robotics, or new transportation platforms can send shares soaring. Missed milestones, regulatory delays, or cash burn can just as quickly send them crashing back down.
That boom-or-bust profile means these stocks aren’t core holdings for most investors. But for those building well-diversified portfolios, taking a small position in promising names can offer exposure to massive long-term themes like artificial intelligence (AI), surgical robotics, and electric air mobility.
This post originally appeared at The Motley Fool.