There’s been a lot of talk about artificial intelligence stocks. Grand View Research recently said the global artificial intelligence ( ) boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. OpenAI just released ChatGPT, “a new artificial intelligence ( ) system, known as a large language model (LLM), designed to generate human-like writing by predicting upcoming word sequences,” says SciTechDaily.
Even the White House and the European Union recently announced they’ll speed up and enhance the use of artificial intelligence to improve agriculture, healthcare, climate issues, the electric grid and emergency responses. Even better, according to McKinsey & Co., “Artificial intelligence has the potential to create trillions of dollars of value across the economy—if business leaders work to understand what AI can and cannot do.”
That being said, here are some of the top ways to trade the boom.
|BOTZ||Global X Robotics & Artificial Intelligence ETF||$23.93|
Global X Robotics & Artificial Intelligence ETF (BOTZ)
One of the best ways to profit from the AI boom is with an exchange-traded fund (ETF) such as the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ). While BOTZ looks like it was run over, don’t count it out just yet. Not only does it offer broad diversification among top AI stocks, but it also does so at a low cost of about $24 per share.
With an expense ratio of 0.68%, the BOTZ ETF seeks to invest in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles, according to Global X.
Next up on the list of artificial intelligence stocks to own is Nvidia (NASDAQ:NVDA), a pioneering force behind AI. It’s also one of the top stocks you’ll want to buy on a pullback. Right now, NVDA has priced in a good deal of AI momentum, racing from about $140 to $220 within weeks.
Unfortunately, the stock has become technically overbought at resistance dating back to April 2022. It’s also over-extended on RSI, MACD and Williams %R. That’s the bad news. The good news is NVDA will be a screaming buy on pullbacks for several reasons. For one, the company provides the processing power needed to run AI applications. With that, it could see a significant revenue and share price boost because of the AI boom.
Cowen agrees, reiterating an “outperform” rating on the stock with a price target of $220. “Nvidia is the leader in accelerated compute and the key enabler for AI across vertical industries – full stop,” said the firm, as quoted by Barron’s. Even Raymond James likes NVDA, rating the stock a “strong buy.” Cowen analysts noted NVDA is a key enabler for AI across vertical industries.
C3.ai (NYSE:AI) has again become one of the hottest software stocks on the market. With growing excitement over the AI boom, C3.ai recently raced from a low of about $12 to $30. While it has since backed off, it could see higher highs.
For one, there’s no shortage of demand for its products. In fact, the company is making money by developing AI solutions and software for companies in several industries. That includes manufacturing, oil and gas, utilities, financial services, government and more. Microsoft, Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), for example, partnered with C3.ai to boost cloud services.
It’s even solving what was once unsolvable for the U.S. military. For example, C3.ai was also awarded a $500 million contract with the Department of Defense (DOD) to help accelerate and strengthen its AI capabilities to counter current and future threats.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.