Investing

Best Artificial Intelligence (AI) Stocks to Invest in US 

ai stocks

There has been a recent surge in investors’ interest in ai stocks. Consequently, many companies are touting roadmaps for innovating AI products suddenly.

It also means that the number of AI stocks in the market will increase.

But it should be easy to invest in AI stocks, then.

The scenario is different. Experts say that searching legit artificial intelligence stocks will be difficult. In other words, finding a i stocks like NVIDIA or Microsoft won’t be easy.

These stocks already use generative AI to drive revenues. So, investors who deal in these stocks will be obvious winners.

But disruptive growth of generative AI has leveraged many other investing opportunities.

In fact, Microsoft is one of the potent investors in OpenAI, a startup.

Importance Of Investing in AI Companies

Importance Of Investing in AI Companies

By now, we know that ai stocks can give heavy returns. Hence, most investors are in a hunch for disruptive AI brands. They want to make havoc in the market by investing in these stocks, likely to achieve disruptive growth.

Different Categories of AI Stocks

In the stock market, 3 types of a.i stocks are boldly competing.

The most lucrative a.i. stocks are the tech giants in the US. The second most promising category is the cloud titans. The use of generative AI in cloud technology has spontaneously grown.

In addition, we can divide all these types of ai stocls under two categories:

  • Blue chip technology companies
  • Small and experimental companies

However, the chipmakers also make a lucrative category of ai sticks.

Investing in AI Stocks

Investing in AI Stocks

The equity market in the US propelled to amassing heights. However, we can give credit to the AI companies for that. The mega caps in AI outperformed most others.

Certainly, it’s time you start digging ai stovks.

Importance of Large Tech Companies in AI Investments

The ia stocks of large tech companies are a must watch out, for earnest investors.

Most tech mammoths are investing to expand the use of AI.

We may talk about Amazon. Recently, the tech giant added ChatGPT style AI search to their website. Consequently, Amazon is trading at a share price of 180.75 USD.

Moreover, Google is also digging up innovative Ai extensions.

Recently, the search engine giant shared their ad strategy, that uses AI as a main predicting component. They also use AI in many more ways.

There’s no wonder that Google is trading at 176.33 USD.

Need for Significant Data and Capital for AI Models

Investing in a small artifical intelligence stock may not be the best option, considering the nature of operations in Ai companies.

Brenner observed that “tremendous amount of data and a huge amount of capital” are needed to operate the enormous language models.

Therefore, investing in Helix Energy Solutions Group Inc (69.4% performance growth), Symbotic Inc (38.3% performance growth) and similar others might not be the best option.

But, why?

Certainly, the small companies might suffer from dearth of data mines to groom their language models. They may lack the huge stock capital needed to run AI modules as well.

Benefits of Partnering with Bigger Companies for Small AI Developers

Search for big companies like Microsoft investing in emerging firms like OpenAI. These partnerships can be a silver lining for investors.  

Small AI developers can source data pools, equipment support and other facilities from big tech firms.

So, their chance of better ROI fares higher.

The trust of investors also skyrockets, when big companies invest or vouch for small disruptive Ai companies.

How to Invest in AI Stocks?

How to Invest in AI Stocks

Wait, do you have the basic knowledge of investing? And you want to start your inning with AI stocks?

You’ve landed at the right place. Let me tell you how you can quickly get started.

Opening a Brokerage Account

You can easily open a brokerage account in just 15 minutes. Seems simple, right?

Nowadays, transferring funds to brokerage accounts doesn’t need breaking a sweat.

In other words, simply link your bank account with your brokerage account and get going.

Don’t be drawn to a margin account at first. Instead, stick to a cash account.

Individual AI stocks vs. AI-focused ETFs

This is one big catch that you must sort before you begin trading in ai stocks.

Individual Ai stocks can be highly rewarding for you.

Maybe you are already fixated with investing in NVidia or Alphabet without a doubt.

They are good stocks. But just wait.

Selecting the best individual stock needs heavy fundamental research, upfront costs and incurs risks that you may not want to take on.

Therefore, you might take my suggestion and invest in AI focused exchange trade funds.

These ETFs diversify your profile. At the same time, they are less volatile too.  

AI ETFs

AI ETFs

The AI ETFs are a collection of funds of companies dealing in AI development and new areas of AI implementation.

Overview of AI ETFs

AI ETFs are trading pools that track data from the market to invest in the best pool of ai stocks.

AI Stock Indexes and ETFs that Track Them

The AI ETFs can track a versatile range of ai stocks indices. Some of these are:

  • Indxx Global Robotics & Artificial Intelligence Thematic Index
  • Nasdaq CTA Artificial Intelligence & Robotics Index

Caution When Selecting AI ETFs with AI in Their Name

 They may not be the best ETFs of AI using companies. To diversify, some ETFs use AI powered trading mainly. So, be cautious and learn about the AI ETF properly, before you make an investing decision.

Major Players in the AI Race

Major Players in the AI Race

We discussed the kind of ai stocks that can perform better. But we must also share our perspectives regarding the best tech giants that gave assured returns over time.

Meta Platforms, Inc. as a Leading AI Company

Why do I say so?

That’s because Meta is investing in expanding the range of generative AI use.

We are aware of the MetaVerse. All companies in this loop use a unique AI supercomputer.

At present, Meta buys Ai chips from NVidia. But they will soon produce the chips to be used in Meta data centers.

Consequently, Meta experienced exponential growth in stock value. The present share price of Meta is 478.22 USD.  

Meta’s AI Investments and Performance

We can see innovation and grit in Meta’s recent AI investments and current stock performance too. As a result, most brokers place their bets blindly on this ai stocks.

Wedgewood Partners’ Perspective on Meta Platforms

Wedgewood Partners released their 2023 newsletter for Q4. The newsletter features Meta Platforms Inc.

According to Yahoo Finance, Meta’s stock value grew 173.99% in a period of 52 weeks (about 12 months). In line with the same, Wedgewood quoted that:

“The Company has been a consistent beneficiary of artificial intelligence (AI) over the past several years, investing aggressively in deep learning recommendation systems that help power its products, which reach nearly half the population of the planet.”

AI Stocks That Will Skyrocket

AI Stocks That Will Skyrocket

We almost decoded the hype around ai stocks. After that, it’s time to list some stocks that will see exponential growth or may be growing enormously already.

Methodology for Selecting AI Stocks

You must consider some vital touchpoints, to select the most suitable AI stock. These are:

  • Current market position and the competitive benefit of the AI stock
  • Revenue growth in recent time and current financial health
  • Product portfolio
  • Existing partnerships
  • Risk diversification
  • Market demand
  • Popularity among the customer base

Top 10 AI Stocks to Consider for Investment

Top 10 AI Stocks to Consider for Investment

I used the above-stated parameters to make a list of the 10 best AI stocks:

  1. NVDA
  2. Amazon
  3. Alphabet
  4. Microsoft
  5. Palantir
  6. Meta Inc
  7. AMD (NasDaq)
  8. GOOGL (NasDaq)
  9. IBM
  10. ADBE (NasDaq)

Detailed Analysis of GSI Technology, Inc. And Super Micro Computer, Inc. As Potential AI Stocks

Detailed Analysis of GSI Technology, Inc. And Super Micro Computer, Inc. As Potential AI Stocks

 These two stocks have high growth potential. Stocks like Alphabet or Meta might demand high appreciation value. But these two stocks have an assured chance of growth.

It’s important you learn why you can buy GSI stock.

Well, GSI witnessed a price surge of 168% in 12 months. At the same time, the price soared 104% in the last quarter. However, GSI is suitable for short-term investments only.

In the long term, GSI shows much volatility. Moreover, GSI’s value plummeted 30% in the last 3 years.

Upon fundamental analysis, Super Micro Computer seems to be undervalued. The company sells data center systems. So, they are the helm of the AI businesses.

The current valuation of Super Micro Computer is USD 11.82 billion. The exponential growth continued since 2022.

At the same time, there has been 2000% growth in the stock over three years.

Conclusion

Research shows that there are no big catches for those who are willing to invest in ai stocks. However, you must get your research right and place the right bets.

For instance, you must be careful when choosing individual AI stocks over AI ETFs.

In the short term, many ai stocks will fare better. But you need to do a detailed fundamental analysis to create a list of prospective ai stocks. Hence, there is a level playing field for experienced players and newcomers too. Explore the ai stocks and invest wisely.

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Ankita Tripathy

Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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