From the popularity of ChatGPT, fra൩cas involving OpenAI and Sam Altman, project investments from big companies like Microsoft and Alphabet, and ongoing concerns about the impact on jobs, artificial intelligence has become a hot topiꩵc in the global public square. 

Naturally, if AI is going to be the next big thing, like railroads 🍒in the 19th century and 🧜the internet in the 20th century, investors don’t want to be left behind. 

I’ve received many requests from clients asking how they can invest in AI 🌱and position themselves to benefit from rising value and growing importance. Here’s what I’ve been sharing with my clients. 

Buying Stocks of Companies Hardware Tools

Anyone who follows the financial markets would have come across the story of NVIDIA. On April 24, 2023, it closed at $270.33 per share. A year later, it closed at $796.77 per share, a 195% increase. The company has continued to 澳洲幸运5官方开奖结果体彩网:make headlines since, too.

NVIDIA supplies the hardwa꧟re tools (📖chips) that are needed for AI development. It is currently the leader in the graphic processing units (GPUs) market, and it’s one company that has benefitted from the AI boom. But NVIDIA is not the only company supplying AI chips. Examples of others include: 

• Advanced Micro Devices (AMD)
• Alphabet (GOOGL)
• Amazon (AMZN)
• Apple (AAPL)
• IBM (IBM)
• Intel Corporation (INTEL)
• Qualcomm (QCOM)
• Taiwan Semiconductor (TSM)

The space is becoming more competitive with many technology companies looking for a♌ share in the growing market. In addition to chips, the development of AI systems requires software, infrastructure, and other development tools. These companies are also at the forefront of providing these development tools.  

Buying Stocks of Companies Building & Dౠeplo🧸ying AI Models

In the end, the value of AI will depend on its use cases and how they can impa🍌ct the lives of individuals and businesses. 

Companies that are building and deploying AI models to improve the lives of individuals and businesses are vital to the AI ecosystem. If you want to invest in AI,🧸 you can consider buying stock in such companies. 

In the U.S., Microsoft (MSFT), Meta (META), Tesla (TSLA), Amazon (AMZN), and Apple (AAPL) are the leaders in this regard. 

• Microsoft was an early investor in OpenAI, the creator of ChatGPT. It has also deployed AI in its search engine (Bing), coding platform (GitHub), and Microsoft 365 tools. 
• Meta launched Meta AI, a generative AI available on Facebook, Instagram, Messenger, and WhatsApp. This is in addition to the use of AI for content recommendation and search results generation on its platforms. 
• Tesla uses AI to make automated driving possible. 
• Apple used AI to enable Siri to interact with customers and its platform has been used to provide various AI tools to users. 
• Amazon’s Alexa also uses AI, and its Amazon Web Services also uses AI to improve service delivery to its customers.    

Google has also invested in various🌳 AI projects—Anthropic, Character.io, etc.—and it is committed to doing more in the future. Google products like Search, Maps, Assistant, and, among others also employ AI in one way or the other. 

Buying Stocks of Pure-Play AI Companies

All the companies listed above are not entirely focused on AI. Instead, they are deploying AI to improve existing core business or💫 offer new products and services. 

In contrast, some companies have been built entirely on providing AI services and products. Most of these are not yet public but a few like C3.ai 𒆙(an AI cloud computing software), Darktrace (an AI cybersecurity platform), and BigBear.ai (an AI data analytics company) have gone public (with mixed results). 

Some of the interesting pure-play AI private companies include DataRobot, OpenAI, Clarifai, RapidMiner, Anthropic, FigureAI, and Scale AI, among others. You can follow these companies' trajectory to see if they will ever go public or raise more money privately (if you have that kind of access). 

Buying AI-Focused ETFs

Since achieving broad diversification is harder with individual stocks, you can consider buying ETFs of AI stocks instead. It♈ is generally easier and cheaper to achieve broad diversification with ETFs than individual stocks.

ETFs also provide exposure to important AI and robotics companies 💧outside o🐬f the US while also including non-blue-chip stocks.

Examples of AI and robotics ETFs include: 

• First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT): ROBT tracks the performance of stocks of robotics and AI companies across the globe. Its top three holdings are DarkTrace, a cybersecurity company, AeroVironment, Inc., an American defense contractor, and Valeo SE, a French AI research center for automotive applications. 
• Global X Robotics & Artificial Intelligence ETF (BOTZ): BOTZ invests in AI and robotics companies across the developed markets. It tracks the performance of an AI and robotics index provided by Indxx. The top three holdings are NVIDIA, ABB Ltd, a robotics company headquartered in Sweden, and Intuitive Surgical, an American robotics company.
• Global X Artificial Intelligence & Technology ETF (AIQ): AIQ invests in an index that tracks the performance of AI and big data companies across the globe. It was created in 2018 and currently has an AUM of $1.66 billion. Its top three holdings are NVIDIA, Tencent Holdings Ltd. (a Chinese multinational technology conglomerate), and Amazon.  

The Bottom Line

In addition to these general guidelines, I have also provided personalized advice to my clients based on their financial goals and objectives, risk toler𒆙ance, and time horizon. 

Therefore, before charting an AI investment course, consult with a certified financial planner who can offer advice that integrates relevant elements of your personal and financial circumstances.