What is best AI stock to buy?
The Technology Select Sector SPDR ETF (XLK 1.13%), Invesco QQQ ETF (QQQ 1.54%), and the iShares Semiconductor ETF (SOXX 2.11%) are all worthy foundational holdings for unlocking baseline exposure to AI stocks.
| Company (Ticker) | Sector | Market Cap |
|---|---|---|
| Symbotic (SYM) | Industrials | $23.28B |
| MicroStrategy (MSTR) | Technology | $23.35B |
| Nvidia (NVDA) | Technology | $2.07T |
| C3.ai (AI) | Technology | $2.71B |
The Technology Select Sector SPDR ETF (XLK 1.13%), Invesco QQQ ETF (QQQ 1.54%), and the iShares Semiconductor ETF (SOXX 2.11%) are all worthy foundational holdings for unlocking baseline exposure to AI stocks.
| Company (Ticker) | Forward P/E Ratio |
|---|---|
| Citigroup, Inc. (C) | 8.4 |
| Fidelity National Information Services, Inc. (FIS) | 15.3 |
| Intuitive Surgical, Inc. (ISRG) | 60.9 |
| The Kraft Heinz Company (KHC) | 12.2 |
- Microsoft.
- Alphabet.
- NVIDIA.
- Meta Platforms (Facebook)
- Tesla.
- IBM.
- Palantir.
- Mobileye.
Buffett owns two AI stocks in his Berkshire Hathaway portfolio. He has positions in six other AI leaders thanks to Berkshire subsidiary New England Asset Management.
When Elon Musk created his artificial-intelligence startup xAI last year, he said its researchers would work on existential problems like understanding the nature of the universe. Musk is also using xAI to pursue a more worldly goal: joining forces with his social-media company X.
| Ticker | Company | Performance (Year) |
|---|---|---|
| NVDA | NVIDIA Corp | 200.92% |
| SOUN | SoundHound AI Inc | 71.43% |
| UPST | Upstart Holdings Inc | 53.78% |
| AVAV | AeroVironment Inc. | 53.22% |
Investors looking to capitalize on AI's rapid growth should consider stocks of dominant larger companies that are quickly integrating the technology. Many of these companies are harnessing AI to improve efficiency, introduce new services or roll out enhancements that can help reduce costs and boost revenue.
How do I invest in AI stocks?
This can be done by investing in individual stocks, or by investing in ETFs or mutual funds that focus their investments in AI stocks. There are widely held, well-known AI stocks, as well as much less known AI stocks, that may represent good investments.
Like any other investment, investing in AI stocks involves risks that investors should consider, including technological obsolescence, price volatility, and high valuations. Investing in AI stocks requires a strategic approach because of the technology's dynamic and rapidly evolving nature.
| Stock | 2024 return through March 31 |
|---|---|
| SoundHound AI Inc. (SOUN) | 177.8% |
| Vera Therapeutics Inc. (VERA) | 180.4% |
| Avidity Biosciences Inc. (RNA) | 182% |
| Arcutis Biotherapeutics Inc. (ARQT) | 206.8% |
| Company (ticker) | 5-Year Avg. Yearly EPS Forecast |
|---|---|
| The Vita Coco Company, Inc (COCO) | 104.1% |
| Live Nation Entertainment, Inc. (LYV) | 80.3% |
| Full Truck Alliance Co. Ltd (YMM) | 35.9% |
| Nvidia Corporation (NVDA) | 35.0% |
Just like Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Airbnb, Inc. (NASDAQ:ABNB) is one of the best money making stocks to invest in.
SoundHound AI is a technologically advanced platform developed by SoundHound Inc., a company specializing in sound recognition and voice search. The primary focus of SoundHound AI is to enable computers and devices to comprehend and engage with sound, music, and voice inputs effectively.
OpenAI is a privately held company and therefore does not have a public stock price.
As of mid-May 2023, there are no plans for an OpenAI IPO on the horizon, but the Wall Street Journal reported on January 5 that the AI lab is in talks with venture capital firms to sell at least US$300 million worth of existing shares in the company. Which stocks will benefit the most from AI chatbot technology?
GPT stands for Generative Pre-training Transformer. In essence, GPT is a kind of artificial intelligence (AI). When we talk about AI, we might think of sci-fi movies or robots. But AI is much more mundane and user-friendly.
As the United States continues to lead in AI innovation, the collaboration between public and private sectors, along with a strong emphasis on talent development, positions the country at the forefront of the global AI landscape.
What 5 stocks does Warren Buffett own?
- Bank of America (BAC), 1.03 billion.
- Apple (AAPL), 905.6 million.
- Coca-Cola (KO), 400 million.
- Kraft Heinz (KHC), 325.6 million.
- Occidental Petroleum (OXY), 248.1 million.
- American Express (AXP), 151.6 million.
- Chevron (CVX), 126.1 million.
- Nu Holdings (NU), 107.1 million.
Won't Rush Into "It" Stocks
Buffett famously doesn't rush into hot "it" stocks, so Nvidia wouldn't typically be his cup of tea, according to Wedbush Securities tech analyst Dan Ives. "The value-centric model makes some of these AI names not in Warren's wheelhouse (for now)," Ives said.
Top stock holdings in Buffett's portfolio
Apple (AAPL) – $156.8 billion. Bank of America (BAC) – $28.3 billion. American Express (AXP) – $22.6 billion. Coca-Cola – $22.4 billion.
Yet Amazon founder Jeff Bezos recently placed a bet on Perplexity AI, a startup that, despite the daunting odds, is taking on the search giant.
Elon Musk was one of the co-founders of OpenAI, but he is no longer affiliated with the organization. OpenAI is an independent research organization that is not owned by any individual or company. It is a non-profit organization that is funded by a variety of sources, including donations and grants.
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