Best AI stocks to watch in Singapore
Artificial intelligence stocks are hot property at the moment. With the rise in popularity of AI over the past few years, it’s clear why that is. We’ve compiled a list of the top AI stocks to watch or buy in Singapore.
What are AI stocks?
Artificial intelligence (AI) stocks are those involved in the business of AI and usually fall into one of the following three categories: enabler, engager or enhancer. Enablers are businesses that create AI tech, engagers use AI in their products and enhancers build on AI technology.
All the companies in our list of AI stocks to watch fall into one (or more) of these groupings.
Why are AI stocks popular to trade on?
AI stocks are so popular to trade on because of their meteoric growth over the past few years. In late 2022, the world changed forever when ChatGPT became an international sensation. AI had existed long before this, but it suddenly entered the lives of everyday people.
Following this, AI tech sprouted up, providing services like report-writing, image-creation, programming, data-sorting and more.
Needless to say, AI stocks are popular right now due to their growing use in many sectors. They’re rising in value, making them a popular choice, but they’re still volatile, which means they’re popular among traders.
Pros and cons of trading on AI stocks
Advantages |
Disadvantages |
They’re volatile, which could lead to more trading opportunities |
Many AI stocks are new kids on the block, being relatively untested and posing a greater risk |
AI stocks are popular, so you could benefit from high liquidity with the right approach |
Industry uncertainty and hype means it can be hard for traders to keep up with trends |
The industry continues to develop, leaving room for disruption and rising-star shares |
Dangerous and unexpected uses of AI are valid concerns; we don’t yet know where the industry is headed |
Many have a lower price-to-earnings (P/E) ratio |
At the same time, many are overvalued, making them an expensive purchase with a lower ROI |
Best AI stocks to watch
We picked the following top AI stocks to watch based on their market caps, ranked from first to fifth. All of them can be traded with us. All figures are correct at the time of writing this article.
1. Apple
With a market cap of $3,364 trillion,1 Apple tops our list. People continue to trade on this stock due to its market domination, but there’s also a potential major shift in its business model thanks to the coming of AI. The company is expanding into its own AI technology.
Having said that, Apple has seen its fair share of volatility over the past couple years, which has made for decent trading conditions.
2. Microsoft
Microsoft has a market cap of $3,077 trillion1 and comes up second on our list of AI stocks to watch. The company is investing heavily into AI in projects such as Copilot and services like Azure. Plus, its partnership with OpenAI shows its commitment to an AI future.
From May 2023 to May 2024, Microsoft’s share price increased 35%2 giving traders and investors a lot to think about.
3. NVIDIA
NVIDIA has a market cap of $2,856 trillion,1 marking it as one of the largest companies in the world (the largest at one point). The chip-producer has seen an impressive rise over recent years.
The company is investing heavily in NVIDIA AI Enterprise, an end-to-end cloud software that speeds up data science pipelines and streamlines the creation and deployment of generative AI applications. It also leads the AI chip market, an industry that is only going to grow for the foreseeable future.
4. Alphabet
With a market cap of $2,030 trillion,1 Alphabet is a formidable stock. It’s been in the AI industry since 2017, when it created its Google AI division, which included a foray into deep learning. Since 2023, it’s been competing with Microsoft against its rival’s partnership with OpenAI; Google released Bard, its own AI chatbot.
However, in August 2024, a federal judge ruled that Google had violated US antitrust law, acting as a monopoly in search and advertising.2 With this scandal, the company has seen volatility in its share price, making it a common choice for traders.
5. Meta
If you want to feel old, know that Meta recently celebrated its 20th anniversary. Its market cap is $1,337 trillion1 and is set to increase with its journey into AI development, becoming one of the largest companies in the sector.
It’s focused on a number of initiatives, including a free artificial intelligence chatbot on WhatsApp with plans to later monetise, along with developing multilingual Meta AI for Facebook and Instagram.
With all of this in mind, Meta doesn’t show signs of slowing down any time soon, but only time will tell.
How to trade AI stocks with us
- Create a live or demo account or log in
- Find an AI stock opportunity
- Click ‘buy’ to go long or ‘sell’ to short
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
AI shares summed up
- AI shares are extremely popular at the moment, with the industry having experienced a meteoric rise since late 2022
- The top five AI stocks to watch based on market cap are Apple, Microsoft, NVIDIA, Alphabet and Meta
- You can use CFDs to trade these stocks with us in Singapore
1 Companies Market Cap, 2024
2 Companies Market Cap, 2024
3 The Motley Fool, 2024
4 Companies Market Cap, 2024
5 Companies Market Cap, 2024
6 Reuters, 2024
7 Companies Market Cap, 2024
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The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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