Are these the best AI stocks and ETFs to watch?

AI stocks and ETFs: what you need to know about the sector

Artificial intelligence (AI) is a catch-all term to describe machine learning. While it may still feel like a concept from a sci-fi movie, most of us are already using AI in some shape or form. AI helps us to connect with long-lost school friends on Facebook, to filter out spam emails, to tailor our search results on Google, and to help us plan journeys based on real-time traffic reports.

Scores of countries are using machine learning capabilities to introduce new technologies and to streamline existing processes. For example, self-driving cars rely on AI processes, while AI-powered digital health solutions have been used to manage the Covid-19 pandemic. This means that as the self-driving car and digital health sectors grow, the AI sector stands to benefit too.

AI is also a key component in graphics cards and APIs (application programming interface), which can be used to power everything from smartphones to supercomputers. Many established companies have invested heavily in AI in anticipation of an AI boom, which could happen if the world becomes more and more reliant on functional technology and the internet of things.

While the AI sector is still in its infancy, there are signs that it’s starting to mature. The sheer volume of publicly listed AI firms points towards a growing trend, while the creation of bespoke AI-based indices and index-tracking ETFs proves that there is increasing investor interest in the area.

How to trade or invest in AI shares and ETFs

Trading and investing are two different ways to take a position on artificial intelligence shares and ETFs. When you trade, you are making short-term decisions to make quick gains in growing markets. When you invest, you effectively take a long-term position in a company or fund in the hope that its value will rise over time.

Find out more about the differences between trading and investing

Follow these steps to trade or invest in AI shares and ETFs:

1. Choose whether to trade or invest
2. Create an account or log in
3. Identify your opportunity
4. Carry out your own analysis and research
5. Open and monitor your position

Learn more about how to start trading or investing in AI

AI shares to watch

1. Nvidia
2. Micron
3. Sensyne Health

Nvidia

Nvidia is one of best-known AI stocks, and it manufactures high-powered graphics chips that have a range of different uses. The company has been at the forefront of the self-driving car revolution, creating its own AI operating system for driverless cars, called Driveworks.

The company was founded in 1993 to create graphics-based computer solutions, primarily in the growing video games market. Over the years, the firm has expanded the use of its graphics chips, using the technology to develop cutting-edge machine-learning APIs.

As a result, Nvidia has been an early player in emerging markets such as self-driving cars, electric vehicles, and cryptocurrency mining.

Trade Nvidia shares

Micron

Micron began as a semiconductor design company in the 1970s, ultimately developing high-powered memory chips that can be used to provide AI solutions to smartphones and electric cars.

In 2019, Micron acquired AI hardware and software startup Fwdnxt and launched the Micron Deep Learning Accelerator. Micron’s memory chip technology, paired with Fwdnxt’s AI capabilities, means that the company can develop the sort of deep learning solutions required for data analytics in emerging technologies, such as self-driving cars.

Trade Micron shares

Sensyne Health

Healthcare is the next frontier of the AI market, and Oxford-based healthtech company Sensyne Health is a great way to gain exposure to a home-grown AI stock. Working with NHS trusts, the company uses AI to gather and analyse evidence from large databases of anonymised patient data. This data is then used to develop digital health products.

For example, in earlier 2021, Sensyne Health launched an AI algorithm that provided an hourly risk forecast of the future demand for ventilators and intensive care treatment in hospitals, based upon an analysis of clinical data on Covid-19 patients. The company has started to roll out its digital health products in the US – a sign of its ambitious growth plans.

Trade Sensyne Health shares

AI ETFs to watch

1. WisdomTree Artificial Intelligence UCITS ETF
2. Robo Global Artificial Intelligence ETF

WisdomTree Artificial Intelligence UCITS ETF

The WisdomTree Artificial Intelligence UCITS ETF aims to mirror the performance of the NASDAQ CTA Artificial Intelligence & Robotics Index. This index covers a wide spectrum of AI-focused and AI-adjacent firms, including companies that act as AI enablers, engagers or enhancers.

This means that investors in the ETF can effectively stretch one investment across multiple companies, offering exposure to different corners of the AI market. As well as big hitters such as Nvidia and Baidu, WisdomTree Artificial Intelligence UCITS ETF tracks rising stars in the AI world.

Trade the WisdomTree Artificial Intelligence UCITS ETF

Robo Global Artificial Intelligence ETF

The Robo Global Artificial Intelligence ETF was launched in May 2020 to track the ROBO Global Artificial Intelligence Index – an AI-focused index that was created by Robo Global in 2013. Like the WisdomTree Artificial Intelligence UCITS ETF, this fund offers access to a wide range of companies that work with AI in some form.

Through this AI ETF, investors can gain exposure to Amazon, Microsoft, Nvidia and a number of semiconductor, 3D printer, digital technology and robotics firms.

Trade the Robo Global Artificial Intelligence ETF

Why do people trade and invest in AI stocks and ETFs?

• Trading and investing in AI stocks and ETFs offers a chance to be part of an exciting new growth industry
• There are endless ways to use machine learning in our day-to-day lives
• AI is an incredibly innovative technology that is constantly progressing
• AI stocks will benefit from the growth of related markets, such as self-driving cars and smartphone manufacturing

AI shares and ETFs summed up

• AI is an emerging industry with plenty of growth potential
• AI has many applications in other growth industries such as self-driving cars
• Some of the world’s largest companies are investing in AI solutions
• You can trade or invest in AI stocks or ETFs on our platform

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