Stocks

Investing in AI: A Dive Into the Sector's Hottest Stocks and ETFs

Published May 21, 2024

For investors aiming to capitalize on the burgeoning artificial intelligence (AI) sector, the strategy involves looking beyond the most popular names like NVDA and diversifying into a broader range of companies. In an exclusive discussion, WisdomTree's Global Chief Investment Officer Jeremy Schwartz highlighted the importance of diversifying investments in the AI space and shed light on the promising areas within the sector.

Investment Opportunities Beyond Big Names

While major players such as GOOG, META, and NVDA dominate the headlines, there's vast potential in exploring other companies that contribute to the AI ecosystem. Players like TER, a pioneer in automatic test equipment, and semiconductor giants like QCOM, MU, ASML, and TSM play critical roles in enabling AI technologies. Cybersecurity firm CRWD, chip architecture specialist ARM, as well as deep learning and analytics companies, also represent significant investment opportunities as they facilitate the growth of AI.

AI Sector-Linked ETFs

Investors who prefer the exchange-traded funds (ETFs) route have various options. The AI-focused ETFs like ROBO Global Artificial Intelligence ETF ARCA:THNQ, TrueShares Technology, AI & Deep Learning ETF ARCA:LRNZ, Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X Shares ARCA:UBOT, and Global X Robotics & Artificial Intelligence ETF NASDAQ:BOTZ offer diversified exposure to the sector, fostering investments in multiple companies that contribute to the advancement of AI and robotics.

The Growing AI Landscape

The AI ecosystem is continuously expanding, with companies across various industries integrating AI into their operations. From autonomous driving and healthcare to finance and cybersecurity, AI's applications are becoming increasingly pervasive. As AI continues to evolve, companies specializing in AI, such as those listed above, may offer promising growth potential for investors.

Investing, AI, ETFs