Key Takeaways
- Experts are recommending quite a few companies to invest in, some of them being Nvidia and Meta.
- Great brokerage platforms make the process much more enjoyable, a few of the most widely used are Fidelity and Interactive Brokers.
- There are several alternative ways of investing, like applying AI to enhance your business or crowdfunding a startup AI company.
Noticing how many companies are starting to plunge into artificial intelligence, it’s logical that people have begun to wonder what AI companies to invest in and how to invest in AI stocks. Fear not, as today I will tell you about the most hyped stocks on the market and everything else that you need to know to begin putting your money to work and (hopefully!) making a profit.
We will discuss topics like how to invest in AI, the best broker platforms for doing so, what stocks are currently the most profitable or promising according to other tech-savvy peers, and how businesses are investing in applications such as Writesonic and Synthesia in order to increase their workflow and optimize resource allocations.
Lastly, before we begin, it’s important to know that this is by no means an article to tell you which stocks to buy and where to invest. Its main purpose is to educate you about what enthusiasts think the hottest shares these upcoming years will be.
That being said, without further ado, let’s start learning more about how to invest in AI technology.
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Table of Contents
Top AI Companies to Invest in
First, let’s look at the current top AI companies to invest in and how their stock value has increased based on different year marks. That said, a disclaimer needs to be mentioned that these statistics were taken on 2024 March 5th.
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| Company | Ticker | Performance (1 year) | Performance (5 year) |
| Microsoft Corp | MSFT | +63.37% | +262.11% |
| NVIDIA Corp | NVDA | +238.99% | +1,912.30% |
| Palantir Technologies Inc | PLTR | +212.88% | +166.63% |
| Crowdstrike Holdings Inc | CRWD | +166.14% | +400.64% |
| Meta Platforms Inc | META | +179.19% | +198.26% |
| Arista Networks Inc | ANET | +96.04% | +279.55% |
Table: Microsoft, NVIDIA, Palantir, Crowdstrike, Meta, and Arista stock performance at the 1- and 5-year marks.
As we can see, the statistics vary, with Nvidia showing the most growth in stock value, an increase of over 238.99% in one year. However, other companies are not much behind as well. Despite recent challenges for some stocks, the upcoming years hold promise for these companies, positioning them as strong investment options in the market.
Microsoft
If you’re exploring how to invest in Open AI, it’s crucial to note that Microsoft owns the biggest part of it, with about 49% of the shares.
That said, this partnership extends beyond simple investments, as the two have collaborated to develop AI supercomputing technologies specifically for Microsoft’s Azure cloud platform, with an agreement that Open AI will move its services to Azure.
Unfortunately, when it comes to the subject of how to invest in Open AI, there’s disappointing news. You can’t invest in it directly as you can with companies like Nvidia. Nevertheless, there is still a viable alternative, which would be buying Microsoft shares.
Furthermore, the company has released its very own AI called Microsoft 365 Copilot, which is designed for applications like PowerPoint, Excel, or Word.
The service's price does seem a bit expensive, at $30 per month, especially when you compare it to applications such as Writesonic, which offers its tools at half the price. However, considering that Microsoft Copilot is already providing high-quality performance, it's safe to assume that people will be interested in this software and begin purchasing the stocks making it worth investing in.
This enterprise is definitely on the list of the best AI companies to invest in for many. As one of the leading companies in the AI industry with robust growth in cloud computing, it is expected to continue rising this year, making it a potentially worthwhile stock to hold.
Lastly, it’s crucial to note that Elon Musk, who co-founded OpenAI back in 2015 but stepped away from the company in 2018, has recently started a lawsuit against OpenAI for allegedly breaching the company's founding agreement by giving priority to profits over the benefits to humanity.
It seems like Microsoft will most likely be getting involved in this one way or another. Depending on how the lawsuit goes, it may very well cause Microsoft stock prices to drop. Hence, make sure to follow the news and make smart decisions.
Nvidia
Next, we have Nvidia, which is renowned not just in the gaming industry for its high-quality GPUs but also as a crucial player in AI. This company has excelled by providing chips with unique architecture tailored specifically for artificial intelligence, featuring optimal processors, memory arrays, security, and real-time data connectivity.
This specialization has made Nvidia a leading choice for AI applications, making significant profits and an increase in stock prices. This is why Nvidia is recognized as one of the best AI companies to invest in. As artificial intelligence technology continues to advance, the demand for high-performance chips is expected to increase, as a result raising Nvidia stock prices.
Furthermore, Nvidia’s recent report showing that 2023 fourth-quarter sales tripled from the previous year, far exceeds expectations, reinforcing its status as one of the top AI companies to invest in because of its impressive growth and impact on the market.
Additionally, this tech giant is at the forefront of AI innovation, contributing to advancements in machine learning, autonomous vehicles, and smart robotics. Therefore, I want to remind you, that the following insights are not financial advice, but the wide range of applications ensures Nvidia’s technology remains in high demand across various sectors, promising continuous growth.
What truly surprises me is the company’s commitment to research and development of artificial technologies, which signals a bright future. Nvidia’s partnership with leading tech firms and its role in powering cutting-edge artificial intelligence research centers around the world further solidify its position as the leader in the AI space.
In summary, the strategic investments in AI, combined with its groundbreaking chip technology, make it an attractive option for investors looking to capitalize on the AI boom. However, keep in mind that a lot of factors come into play when talking about stocks, hence, be sure to keep up with the ongoing trends because everything is changing rapidly.
Palantir
Moving forward, we have Palantir, which stands out with its cutting-edge software, capable of analyzing vast amounts of data. Its flagship products, Palantir Gotham and Palantir Foundry, are used by government agencies, financial institutions, and healthcare organizations around the world for various purposes:
- Counter-terrorism;
- Fraud prevention;
- Disease outbreak tracking.
The company’s strong focus on data integration and analytics, combined with involvement with government and corporate projects, places it in a unique position as a player in the AI field. Palantir is predicted to rise even further in the stock market, making it one of the top AI companies to invest in.
Providing such services, Palantir has a very diverse client base and robust revenue growth, which may make it a great choice for people who like the form of long-term investing. This company is very promising in regard to top AI companies to invest in, nearly tripling its stock value in 2023.
However, its reliance on government contracts or concerns over privacy and ethics have been a point of debate.
That said, it’s important to note that the company has started to shift towards a more diversified income stream, with commercial revenue growing significantly, reflecting a strategic move away from its reliance on government contracts.
CrowdStrike
CrowdStrike is another cybersecurity company that provides cloud protection, endpoint security, threat intelligence, and cyber attack response services. Its Falcon platform has made a name for itself as a next-generation cybersecurity solution, adept at stopping breaches by automatically detecting and responding to threats in real time.
With the increasing importance of cybersecurity and the growing sophistication of cyber threats, CrowdStrike’s AI-driven approach to security positions it as a critical player in the network security space. The company’s focus on cloud-native technology and the scalability of its offerings make it particularly appealing to businesses undergoing digital transformation.
Furthermore, taking everything into account, I think it’s safe to say that CrowdStrike deserves to be on the list of top AI companies to invest in 2024. Its stock has already increased by 29.99% since the New Year. Also, it seems like a lot of people online are discussing purchasing shares, making it quite a hot topic in these past few weeks.
Additionally, considering that numerous hackers conduct breaches very often and proceed to ask for a ransom of the stolen data, companies want to protect themselves from a scenario like this. Hence, purchasing services like Falcon could possibly increase the stock value of cybersecurity companies like CrowdStrike.
The company’s potential in the cybersecurity market is vast, with a broad service offering across crucial areas like data and identity protection. CrowdStrike’s ability to cross-sell to an increasingly reliant customer base highlights its strong market position and promising growth trajectory.
In the context of how to invest in AI technology, CrowdStrike showcases a strategic opportunity within AI companies to invest in, especially for those interested in the cybersecurity domain.
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Meta
Going down the list, previously known as Facebook and rebranded as Meta to display their focus on the metaverse, this company has already dipped its toes into the AI world. Having released two different versions of the Llama AI platform has had a positive impact on their stocks.
Recently, Mark Zuckerberg, the CEO of Meta, posted an Instagram reel stating his ambition to create the first artificial general intelligence, the essential ability of AGI would be solving various problems, including those on unknown issues, by flexibly combining the knowledge that is gained from experience[1].
For Zuckerberg to move forward with this project, he is hoping for an astonishing number of 350,000 Nvidia chips by the end of 2024.
Now, here’s something interesting - Meta’s stock value has shot up by 179.10% over the past year. This makes it quite a tempting prospect if you’re thinking about investing. If they pull off creating the first AGI, who knows? The share prices could just go through the roof. Of course, that’s if the project isn’t a flop.
But it seems like there’s a lot of buzz around this venture, and people are keeping their fingers crossed.
Now, let’s talk about some recent developments. Meta AI has introduced new experiences across WhatsApp, Messenger, Instagram, and soon on Ray-Ban Meta. This shows a promising direction for the company’s AI capabilities.
That being said, if you were looking for AI companies to invest in for the long term, Meta could be a potential stock in your portfolio. Since it’s not afraid to invest in the artificial intelligence industry, if it’s successful at what it’s trying to achieve, Meta has the potential to blow its stock prices through the roof.
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Arista Network
Arista Network is an industry-leading company that specializes in data-driven, client-to-cloud networking for large-scale data centers, campus and routing environments. They provide both hardware and software tools for data centers and cloud computing. In simpler terms, they are like architects of internet highways designed to transfer vast amounts of data.
As more companies are transitioning to AI cloud computing solutions, it is said that Arista stocks could gradually grow over time. Hence, if the idea of investing in AI technology piques your interest, these shares might just be the thing you’re looking for.
That said, investing in artificial intelligence isn’t merely about selecting companies. It is also about identifying who contributes significantly to AI’s growth. Arista plays a pivotal role in this area, underscoring the importance of these support systems. This suggests that investing in the tech powering AI could be a smart move.
Experts also point out that as AI becomes increasingly complex, it requires improved networks. Arista’s endeavors to enhance these networks indicate it’s a promising area for investment, making it one of the top AI companies to invest in, especially appealing to savvy investors.
Last year, Arista saw a significant stock increase of 96.04%, with a 279.55% rise over the past five years. This success highlights its strong market position and growth potential.
Given the AI sector’s continued expansion, other investors are optimistic about witnessing further growth in the coming years. The increasing demand for superior data networks might make Arista, a company dedicated to improving these networks, one of the best AI companies to invest in.
How to Invest in AI Stocks
You’re probably wondering how to invest in AI stocks, especially after we’ve explored some of the best AI companies to invest in. Don’t worry if you’re new to this because I will guide you through the process.
To get started, it’s probably worth mentioning that choosing the right stock is the first step, however, be careful what you choose since a lot of variables come into play when trying to predict if the investment will give profit.
Now, before we dive deeper into how to invest in AI stocks, there’s a step you should do first - research. You could do this by yourself, which might take a while as you need to read lots of different articles or, to make things easier, you could take a course on investing that has all the info you need in one place.
Here are a few of my personal recommendations that would definitely prove useful:
- “Investing In Stocks The Complete Course!” - This course will help you have a complete understanding and confidence when investing in the stock market.
- “Investment and Portfolio Management Specialization”- In this 5-course series, you'll learn the key skills needed to manage a portfolio and invest personally.
Moving on, before I explain the practicalities of investing in AI technology, you’ll need a trustworthy stock broker platform. That said, let’s explore a few popular ones.
Starting with Fidelity, its accounts are restricted to the US. Therefore, if you’re not from there, I recommend going to the next platform. With that said, Fidelity is one of the largest US brokerage companies, having low costs, extensive educational content and great trade executions, making it one of the most popular applications used.
Secondly, for use outside the US, it’s recommended to use eToro, a platform known for its simple sign-up process and likable user interface. This brokerage also lets beginners copy the trades made by experienced investors or receive perks for sharing their own strategies.
Last but not least, the Interactive Brokers platform is known for its low trading fees, high interest on cash balances and wide range of products with many great research tools. However, it has a complicated account opening process and a complex desktop trading platform that might require some time to get used to.
That said, remember, these are just a few options, there are plenty more stock broker platforms to choose from that could help you on your way to learning how to invest in AI stocks - hence, don’t be afraid to test out different service providers until you find the right fit!
Furthermore, here’s a brief guide on setting up a stock broker platform account. I will be picking Interactive Brokers as an example since more people can use it due to having fewer restrictions:
Step 1: Choose the right platform by researching and selecting a brokerage that best suits your needs.
Step 2: Afterward, you can proceed by registering and filling out all the necessary information.
Step 3: Select the type of account you want to create, and decide whether you need an individual, joint, retirement (like an IRA), or a margin account based on your goals.
Step 4: Fund your account by depositing money through a bank transfer, check, or electronic transfer from another account.
Step 5: Familiarize yourself with the platform’s tools and resources. Start researching stocks and make your first investment purchase.
Now, you’re all set to begin investing and making some additional income. However, remember that investing in stocks involves risks, so it is important to do your own research and consult with a financial advisor to align your investments with your financial goals and risk tolerance.
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Alternative Ways of Investing in AI
We have explored the best AI companies to invest in and have even run through the basics of how to invest in AI technology. Therefore, I believe now it’s time to see what alternatives are available for people who would like to try a different option than investing in stocks.
Our first alternative is directed toward business owners. Recently, many company leaders started investing in artificial intelligence to improve their decision-making capabilities and contribute to their businesses’ sustainability[2]. They are recognizing the power of AI and starting to invest in software designed to handle simpler tasks.
This approach allows the application to tackle time-consuming work, leaving complex, error-prone projects to employees. The result? Enhanced workflow and increased company revenue.
By investing in AI software tailored to their specific needs, businesses can save significant resources. This strategic move not only drives company revenue but also optimizes resource allocation. So, if you own a business, it might be worth considering how AI could execute your operations more efficiently.
An example of such an application is Writesonic, which can handle pretty much any writing task, whether it's for a blog or a letterhead. Moreover, if, let's say, you need to record training videos, you can save a lot of time by using Synthesia. With this application, you can even create your own custom avatar and record all sorts of videos using their templates.
Additionally, a lot of people are searching for ways how to invest in Open AI. As we’ve previously discussed, this is currently unattainable. The reason? The company has decided to remain private and, unfortunately, does not offer its stock to the public.
So, what’s the next best thing except investing in Microsoft? Well, you might consider becoming an employee of the company. This suggestion may seem a tad unconventional, and yes, it’s only feasible for a select few with the necessary skill set.
If you do manage to join their ranks, you’d be in for a great perk - equity in Open AI Global. This for-profit entity holds the legal rights to OpenAI’s model. It generates revenue by licensing these models out to users, which can be a significant income stream.
Lastly, if you’re the type who enjoys taking big risks for the possibility of even bigger rewards, some people like to test their luck with startup businesses by investing in them through crowdfunding platforms like Kickstarter, Indiegogo, or GoFundMe.
That being said, keep in mind that this specific method on how to invest in AI technology, while highly rewarding if successful, can also pose a risk to your finances.
So, before jumping in, make sure you’ve weighed all the pros and cons, evaluated all variables, and considered potential outcomes. Remember, every investment comes with its own set of risks and rewards.
Is it Even Worth Investing in AI?
The answer to the question "Is it worth investing in AI?" definitely varies from person to person on how they view artificial intelligence. Nonetheless, purchasing stocks has always involved risks, however, the biggest risk of all, is not taking one.
That being said, it's hard to ignore the buzz around artificial intelligence in recent years. The rising stock market value of AI is catching the attention of many savvy investors.
In fact, from what my research tells me, experts are constantly on the hunt for promising AI companies to invest in. It's an exciting field that's set to advance even further, and this isn't just idle speculation.
Considering the expected advancements in artificial intelligence, many believe we're not dealing with a simple bubble. Instead, they expect share prices to continue their upward trajectory. This optimism comes from the fact that numerous companies are ready and willing to pump substantial funds into developing superior AI projects.
So, to answer the question - is it worth investing in AI companies? Well, based on my research, it certainly seems that way. Investing in artificial intelligence could indeed be a worthwhile endeavor, given the potentially rewarding profits. But as always, tread carefully and make informed decisions.
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Conclusion
Investing in AI is an exciting journey that’s accessible to everyone. The key lies in focusing on high-performing AI companies like Nvidia or Meta, known for their innovation and potential for significant returns on investment (ROI).
You don’t need to be an expert to get started. There are plenty of resources, including online courses on Coursera, Udemy, and edX, that can guide you through the basics. Moreover, as mentioned previously in this article, if you have a business and want to enhance your workflow, don't forget about applications like Writesonic, which can be utilized as a writing assistant and Synthesia, which can record videos using AI avatars.
In conclusion, investing in AI and tech giants offers promising opportunities. By carefully selecting AI companies to invest in, using the right platforms, and exploring alternative investments, you can position yourself to benefit from the AI boom. Remember, the potential of the AI sector is vast, making it a smart move for forward-thinking investors.
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy or use any kind of AI tool. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. H. Yamakawa.: 'The whole brain architecture approach: Accelerating the development of artificial general intelligence by referring to the brain';
2. A. Sedky.: 'Investing in Artificial Intelligence (AI) for Business Leaders to Enhance Decision-Making'.
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