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How to Invest in Artificial Intelligence
May. 08, 2024 01:30PM PST
Learn how to invest in artificial intelligence, from AI stocks to ETFs, and capitalize on the tech revolution transforming industries.
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Artificial intelligence (AI) has been pegged by some as sparking the fourth industrial revolution, with many industries and countries investing heavily in this emerging technology.
An inflection point came in the AI market following the launch of OpenAI's ChatGPT AI chatbot, prompting some of the world’s biggest tech companies such as Microsoft (NASDAQ:MSFT), NVIDIA (NASDAQ:NVDA) and Alphabet's (NASDAQ:GOOGL) Google to advance on their own AI initiatives.
Today, AI technology is taking root across myriad industries from healthcare and finance to manufacturing and transportation.
With that in mind, here the Investing News Network provides an overview of how to invest in AI for those interested in stepping into this complex and ever-growing sector.
What is artificial intelligence?
AI is defined by IBM (NYSE:IBM) as “technology that enables computers and machines to simulate human intelligence and problem-solving capabilities”. As concrete examples of AI, the tech firm lists digital assistants, GPS guidance, autonomous vehicles, and generative AI tools (like Open AI's Chat GPT).
AI and machine learning often get intertwined, but they are not the same thing. Putting it into simple terms, machine learning is a subset of AI. It's how a system looks at complex sets of data and learns from this information, while AI is how the data is expressed.
The rapid development of machine learning and subsequently AI technology in recent years can be attributed to significant advancements in graphics processing units (GPUs) which have allowed for the creation of powerful chips that can support machine learning and the training of AI models.
How to invest in artificial intelligence?
With such growth potential in the AI market in the coming years, investors may very well want to dive into the sector. There are a number of ways to do so, including AI exchange-traded funds (ETFs) and AI stocks.
Artificial intelligence exchange-traded funds
For those who would rather invest broadly in AI rather than in a specific company, ETFs are a popular option. Here’s a brief overview of three AI ETFs for investor consideration:
- Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ): The fund began on September 12, 2016, and its top holdings include NVIDIA, ABB (OTC Pink:ABLZF,SWX:ABBN), Intuitive Surgical (NASDAQ:ISRG) and Keyence (OTC Pink:KYCCF,TSE:6861).
- ARK Autonomous Technology & Robotics ETF (NYSEAMERICAN:ARKQ): This fund was started on September 30, 2014, and its top holdings are Kratos Defense & Security Solutions (NASDAQ:KTOS), Tesla (NASDAQ:TSLA), Teradyne (NASDAQ:TER) and Trimble (NASDAQ:TRMB).
- ETCT ROBO Global Robotics and Automation ETF (NYSE:ROBO): The Robo Global Robotics and Automation Index began on October 22, 2013, and its top holdings include Intuitive Surgical, Rockwell Automation (NYSE:ROK), IPG Photonics (NASDAQ:IPGP) and Zebra Technologies (NASDAQ:ZBRA).
Artificial intelligence stocks
Investors looking to put money into AI stocks also have quite a few options available to them.
To help potential AI investors get an idea of the various sectors available to them under the AI umbrella, the Investing News Network has put together a number of lists:
- 5 Canadian Artificial Intelligence Stocks
- ASX AI Stocks: 5 Biggest Companies
- AI Stocks: 9 Biggest Companies
- 12 Generative AI Stocks to Watch
These lists of AI companies of course provide only a small glimpse at the broader sector, but for those just learning about the AI investment opportunity they are a good place to start.
This is an updated version of an article originally published by the Investing News Network in 2018.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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