Mark Cuban Says Learn AI or Become "a Dinosaur Within 3 Years." Here's What That Means for Your Portfolio.

Innovators are special because they see and act on things long before the rest of us mere mortals even know about the opportunity. Mark Cuban spoke out about artificial intelligence (AI) nearly a decade ago, and what he said then still sounds incredibly relevant.

Cuban spoke at the Upfront Summit in Los Angeles back in 2017. He warned that anyone who didn't understand AI, deep learning, or machine learning needed to start learning, or they would become "a dinosaur within three years."

Now, as we're on the verge of 2027, Cuban's prediction looks pretty good. AI has changed how nearly every industry operates, including tech, finance, and even old-fashioned industrial companies. If you're still operating a business without AI today, you may as well be in Jurassic Park.

I believe that investing in artificial intelligence stocks is the biggest opportunity of this generation to create wealth. And the easiest way to do that is through an index fund that gives you access to the best AI companies all at once.

Image source: Getty Images.

Why I'm bullish on AI

The AI boom has already created enormous wealth for investors. You may have heard about the "Magnificent Seven" -- a grouping of seven tech-driven stocks that have grown so quickly that they now make up 33% of the entire market cap of the S&P 500. It's no coincidence that Apple, Alphabet, Amazon, Microsoft, Nvidia, Meta Platforms, and Tesla are among the leading companies developing AI platforms and products.

The infrastructure build-out is enormous, and companies are still figuring out how to turn AI capabilities into profitable products. But picking the biggest winners isn't necessarily easy.

Why QQQ is my favorite way to invest

The Invesco QQQ Trust (NASDAQ: QQQ) tracks the Nasdaq-100, which includes 100 of the largest non-financial companies listed on the Nasdaq exchange. And its holdings read like a who's who of artificial intelligence.

As of Nov. 10, Apple accounted for 8.43% of the fund, followed by Nvidia at 6.80%. Microsoft, Amazon, Alphabet, Tesla, and Meta are also represented with top allocations, along with storage chipmaker Micron Technology and Nvidia competitor Advanced Micro Devices.

QQQ isn't exclusively an AI investment. It holds companies in retail, healthcare, and other industries, too. But technology accounted for 64.4% of its portfolio at the end of October.

The fund also has an expense ratio of just 0.18%, meaning an investor pays $18 annually for every $10,000 invested.

I love the QQQ because I think that, over the long term, tech stocks will continue to generate substantial returns. Owning the ETF gives me exposure to many of the companies building the AI economy without betting everything on a single stock.

Nearly a decade ago, Cuban recognized the importance of AI. I think investors who ignore its long-term potential today could end up regretting it.

Patrick Sanders has positions in Invesco QQQ Trust and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Micron Technology, Microsoft, Nvidia, and Tesla. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.