Let's talk about AI Companies (+ 5 Examples)
AI is the new gold rush and these 5 companies are some leading players in the game
Published January 14, 2024.
One of the major trends to watch in recent years has been the growth and advancement of artificial intelligence (AI). From advances in machine learning and natural language processing to its use across various industries such as healthcare, finance, and retail, AI is quickly becoming an integral part of our daily lives, grabbing the attention of potential traders and investors.
Note: Fortrade offers the ability to trade the price changes of AI stocks with CFDs and NOT to buy/sell ownership of the stocks themselves. The information contained in this blog is purely educational and should not be considered investment advice.
How to Invest in AI
1. Do Your Research
Before investing in AI companies, it's important to thoroughly research the industry and specific companies that are some of the major players. Specifically, investors should keep abreast of the latest developments in artificial intelligence, as well as broader areas like machine learning and natural language processing.
2. Choose Your Investment Method
Popular investment methods include exchange-traded funds (ETFs), individual stocks, and venture capital investments.
- ETFs are a fund that contains a basket of instruments that can be traded as a single unit on the stock market, making them an easy and convenient way to invest in multiple AI-related companies at once.
- Individual stocks refer to trading shares of one particular company, offering more control over investments but also entailing higher risk.
- Venture capital investments involve funding startups with a higher potential for growth but usually require larger initial investments and come with greater risks.
- CFDs give you a potential way to trade with the price changes of ETFs, stocks, and more, without having to purchase ownership of any instruments.
3. Diversify Your Account
Diversification involves spreading your investments across multiple AI-related companies instead of focusing on a single one. The reason for this is to reduce the impact of a single stock on your overall account. Should one of the companies go bankrupt and their stock price drop significantly, your overall portfolio would be less affected, rather than if your entire investment fell on a single company that failed.
Investing still comes with risks, regardless of the sector or industry. Some investments may not perform instantly, so having a diverse portfolio could help manage the risk.
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4. Monitor Your Investments
Effective AI company investments require diligent monitoring. Setting alerts for stock price changes, earnings releases, news, and pertinent data streamlines the process. Many investors use economic calendars for precisely this reason.
Additionally, investors should be aware of any new advancements that might affect the AI sector, such as new technologies or shifts in consumer demand. By monitoring their investments closely and actively seeking out news and updates within the industry, investors could make well-informed decisions.
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5 Examples of AI Companies
1. Nvidia (NVDA)
Nvidia is an American-based company specializing in graphics processing units (GPUs) and AI computing. It has been a leader in GPU technology for many years, and its products are used across various industries, such as gaming, automotive, and healthcare.
2. Amazon (AMZN)
Amazon, a leading global online retailer, has made substantial AI investments. They've created products like Alexa, a voice-activated assistant, and established the Warehouse Robotics division for task automation.
3. Oracle (ORCL)
Oracle is an American-based multinational computer technology corporation that provides a wide range of services and software solutions, including AI. It has developed several AI-related products, such as the Oracle Autonomous Database, which uses machine learning to optimize database performance with minimal human intervention.
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4. IBM (IBM)
IBM is a multinational technology company that has been at the forefront of AI research and development for many years. Its Watson platform, which uses natural language processing to understand and respond to user questions, is one of its most popular products.
5. Google (GOOGL)
Google is one of the world's leading technology companies and is an established player in the AI space. It has developed several products such as Google Brain, which uses deep learning to power its search engine, as well as other services such as Google Duplex, which can engage in natural conversation with humans.
Navigating the AI Investment Frontier With Confidence
Investing in AI companies can be enticing, but it's crucial to bear in mind that all investments come with inherent risks. Staying informed on the industry through monitoring investments and news about advancements in AI technology could also provide an edge when investing in the AI sector.