It looks like artificial intelligence (AI) will be one of the most important tools of our time. If you are quick, you can capitalize on this opportunity. But how do you do that? Well, This Article is exactly about how to invest in AI.
1. Put your money into top AI companies
One way is to put your money into well-known public companies that are stars in AI:
- GPUs, or graphics processing units, are what AI systems use to run. Nvidia (NVDA) makes them. With an 88% share, Nvidia is the market leader in GPUs.
- Microsoft (MSFT) has put a lot of money into AI. For example, it owns a $1 billion share in OpenAI, the company that makes AI chatbots. Microsoft is adding AI to many of its goods, such as Office 365.
- AI is used by Amazon (AMZN) in its personal assistant Alexa and in its Amazon Web Services cloud platform, which gives customers AI tools.
- When AI services like Siri are provided on Apple (AAPL) devices, the company makes money. Apple also gets a cut of the sales of AI apps like ChatGPT. Also, it can buy AI companies.
2. Buy stock in companies that only deal with AI
Putting money into smaller AI-only companies is risky, but it gives you access to new ideas. Some examples are
- C3.ai (AI): Helps businesses like Shell and the U.S. State Department use AI to make their supply lines, energy management, and security better.
- SoundHound (SOUN) sells AI voice assistants and provides real-time speech recognition services. Mercedes, Hyundai, and Deutsche Telekom are some of the partners.
- Upstart Holdings (UPST): Its AI lending tool looks at applicant data to help banks and credit unions automatically approve loans.
3. put your money into AI ETFs.
AI exchange-traded funds (ETFs) offer a wide range of stocks that are tied to AI. The best AI ETFs are:
- Among the companies that the Global X Robotics & Artificial Intelligence ETF (BOTZ) owns are Nvidia and Keyence, which work in robotics, automation, and AI.
- ROBO Global Robotics & Automation Index ETF (ROBO): This fund invests in robotics, automation, and AI companies from a range of industries and market sizes.
- WisdomTree Cloud Computing Fund (WCLD): This fund invests in cloud software companies that offer tools for building and deploying AI apps.
4. Look for companies that are using AI
You can expect well-known businesses to start using AI to make their goods and services better. For example:
- JP Morgan (JPM) uses AI to make credit decisions automatically, find scams, and make customer service more personal.
- Toyota (TM) is using AI and self-driving delivery trucks to automate the process of making cars.
- Netflix (NFLX) uses AI to make suggestions to customers and make programming better.
5. Put your money into companies that make AI chips
Deep learning techniques work well on specialized AI chips. The best companies are:
- Nvidia (NVDA) makes GPUs that are great for AI tasks.
- Advanced Micro Devices (AMD) makes AI chips for PCs and data centers.
- Intel (INTC) makes chips and neurons that are designed to make AI jobs go faster.
6. In Summary
There are interesting investment chances in AI, but there are also risks if it doesn’t catch on. If you want to get exposure, think about how much danger you are willing to take and how long you want to invest for.
Putting together AI-only stocks, well-known tech companies, and AI-focused funds can help balance returns and risks. Keep learning about new developments in AI so that you can make smart investment choices in this fast-paced field.
