AI Stocks: How to Invest and Top Companies

AI stocks (artificial intelligence stocks) have become one of the alternatives that draws the most attention among investors interested in technology and international markets. 

Since the launch of ChatGPT and other generative AI tools, artificial intelligence has gone from being an emerging technology to occupying a central place in the strategy of some of the world's most important companies. 

The data reflects this expansion. According to a report by Fortune Business Insights, approximately 35% of companies have already integrated AI, while 9 out of 10 organizations use this technology to stay ahead in the market. 

This growth has driven new investments, the development of AI-based products, and greater demand for technological infrastructure. As a result, various companies linked to artificial intelligence have caught the market's attention. 

In this article, we explain how to invest in AI stocks, which companies have the greatest exposure to this technology, what their main risks are, and what differences exist between investing in individual stocks versus specialized ETFs. 

AI stocks are shares of companies that develop, provide, or use artificial intelligence as a significant part of their business. These range from chip manufacturers and infrastructure providers to large companies with exposure to AI and pure-play companies, whose business is primarily focused on this industry. 

Interest in these companies grew rapidly after the launch of ChatGPT. According to OpenAI, just five days after its launch in November 2022, the tool had already surpassed one million users. 

This rapid rate of adoption pushed other tech companies to develop their own AI solutions and increased investment in data centers, semiconductors, cloud services, and new applications. As a result, companies linked to this technology began attracting greater attention from investors. 

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The process for investing in artificial intelligence stocks starts with a brokerage account that provides access to the US market. Next, you deposit funds, select the instrument that best suits your goals and risk level, and finally place the buy order. 

Here's a step-by-step breakdown of how to invest in AI shares: 

1. Open a brokerage account in the US: a brokerage account lets you buy and sell stocks, ETFs, and other financial instruments. Before choosing a platform, review its costs, available instruments, and terms; 
2. Deposit funds: once the account is open, you'll need to transfer money to have the capital available for investing. The amount will depend on each investor's strategy and resources;
3. Choose between individual stocks or ETFs: you can invest directly in companies linked to artificial intelligence or use an ETF (exchange-traded fund) that brings together several companies in the sector. The choice will depend on the level of diversification and risk you're willing to take on; 
4. Decide how much to invest: you don't need a lot of money to get started. Fractional shares let you buy a portion of a stock for a set amount, though availability depends on the broker and the assets it offers; 
5. Place the buy order: finally, select the asset, indicate the amount or number of shares, and place the order according to the options available on the platform. Before doing so, analyze the company, its results, its outlook, and the associated risks. 

There's no single answer to which are the best AI stocks, but understanding the different categories of companies can help you identify the top AI companies to invest in. Keep reading to learn more: 

These companies may appear among the top AI companies to invest in, but that doesn't necessarily mean they're the best fit for every investor. A more specialized company may have greater exposure to the sector's growth, but it can also face higher volatility and specific risks. 

That's why, instead of searching for the "best" artificial intelligence stocks, it's worth analyzing factors like the business model, financial results, growth outlook, company valuation, and the level of exposure you're looking for as part of your investment strategy. 

Before looking at which to choose, let's start by defining each option. While individual stocks let you invest in specific companies, AI-focused ETFs (exchange-traded funds) bring together different assets in a single instrument, letting you diversify your investment across several companies with just one purchase. 

Depending on their strategy, ETFs may include chip manufacturers, software companies, infrastructure, cloud services, and other companies linked to the development of this technology. For example: 

• Global X Robotics & Artificial Intelligence ETF (BOTZ); 
• ROBO Global Robotics & Automation Index ETF (ROBO); 
• iShares Robotics and Artificial Intelligence Multisector ETF (IRBO); 
• Global X Artificial Intelligence & Technology ETF (AIQ). 

On the other hand, investing in individual stocks lets you select specific companies and gain more direct exposure to their results. However, it also means taking on the specific risk of each company. 

The right choice will depend on your goals, investment horizon, and risk tolerance. 

1. High volatility: companies linked to AI can experience significant swings in their stock prices. 
2. Hype-driven valuations: the enthusiasm around artificial intelligence can lead some companies to reach high valuations relative to their current results. If expectations aren't met, their stock prices could drop. 
3. Sector concentration: investing mainly in tech or AI-related companies can reduce the diversification of your investment portfolio and increase your exposure to the same risk factors.
4. Regulatory uncertainty: governments continue to develop rules around the use of artificial intelligence. New regulations could affect how certain companies develop, market, or use these technologies. 

• Don't invest money you might need in the short term: stock investments can lose value temporarily, so it's best to use capital set aside for longer-term goals. 
• Diversify: avoiding putting all your investment into artificial intelligence or tech stocks can help reduce the impact of a downturn specific to the sector. 
• Review your strategy regularly: market conditions, company results, and personal goals can change over time. Reviewing your investments helps confirm they're still aligned with your defined strategy. 

AI shares offer a way to take part in the growth of a technology that's transforming industries, but they also require carefully weighing the opportunities and risks involved. 

There's no single option that works for everyone: you can choose individual companies or ETFs, depending on your goals and the level of diversification you're looking for. 

With Inter, you can access international instruments through a 100% digital experience and manage your investments from a single platform. 

Discover new investment opportunities with Inter and build a strategy aligned with your goals.