Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Are these the best AI stocks and ETFs to watch?

Artificial intelligence stocks have been attracting a lot of attention from investors. Read about some AI stocks and ETFs to watch, as well as steps for how to trade or invest in artificial intelligence.

Nvidia stock chart Source: Bloomberg

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 in order 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 AI shares and ETFs:

  1. Choose to trade
  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 in AI

AI shares to watch

  1. Nvidia
  2. Micron
  3. Sensyne Health

1. Nvidia

Nvidia is one of the 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.

Nvidia shares Source: IG charts
Nvidia shares Source: IG charts

2. 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.

Micron shares Source: IG charts
Micron shares Source: IG charts

3. 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 early 2021, Sensyne Health launched an AI algorithm which provides 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.

Sensyne Health shares Source: IG charts
Sensyne Health shares Source: IG charts

Trade Sensyne Health shares

1. 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.

WisdomTree Artificial Intelligence UCITS ETF shares Source: IG charts
WisdomTree Artificial Intelligence UCITS ETF shares Source: IG charts

2. 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 which 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.

Robo Global shares Source: IG charts
Robo Global shares Source: IG charts

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 in AI stocks or ETFs on our platform

Create an account to get started

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Explore the markets with our free course

Discover the range of markets you can spread bet on - and learn how they work - with IG Academy's online course.

Turn knowledge into success

Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out risk-free in your demo account.

Ready to trade shares?

Put the lessons in this article to use in a live account. Upgrading is quick and simple.

  • Trade over 16,000 popular global stocks
  • Protect your capital with risk management tools
  • Deal on 70 key US stocks out-of-hours, so you can react to news

Inspired to trade?

Put the knowledge you’ve gained from this article into practice. Log in to your account now.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.