The Ultimate Guide to Artificial Intelligence Stock Investing in 2023

A graph showing the performance of AI ETFs

Welcome to the world of artificial intelligence (AI) investing, where the potential for growth is as vast as the technology itself. As AI continues to revolutionize industries and reshape the global economy, savvy investors are paying close attention to the top AI stocks, seeking opportunities to capitalize on this transformative technology, including artificial intelligence stock.

In this comprehensive guide, we’ll explore the top AI stocks of 2023, the industries that benefit from AI, and how to invest in AI-focused exchange-traded funds (ETFs) and artificial intelligence stock. We’ll also delve into the role of AI in company operations, essential AI terms and concepts, the long-term outlook for AI stocks, and the risks and challenges associated with AI investing. Buckle up and join us on this exciting journey through the dynamic landscape of AI investing.

Key Takeaways

  • Invest in AI-driven industries such as cloud computing, semiconductors and autonomous vehicles for long-term growth potential.

  • Consider key terms & concepts when evaluating AI stocks to make informed investment decisions.

  • Open a brokerage account & allocate no more than 10% of your portfolio to individual stocks to start investing in AI.

Top AI Stocks to Watch in 2023

blur, chart, computer

The AI revolution is well underway, and leading technology companies are at the forefront of innovation in artificial intelligence and machine learning. Investors looking to capitalize on the AI boom should consider adding the following companies to their portfolios:

  1. Microsoft

  2. Alphabet

  3. Nvidia

  4. Amazon


These technology giants, including international business machines, have developed cutting-edge AI products and services, such as AI-driven search engines, chatbots, and cloud infrastructure services, propelling them to the forefront of the AI landscape. Their advanced data centers play a crucial role in supporting these innovations.

Investing in artificial intelligence stocks, such as these publicly traded companies, gives you the advantage of their present AI capabilities, along with the potential of their future growth as they continue to innovate in AI applications, products, and services. As the demand for AI technology increases, these companies are well-positioned to benefit from the expanding market, making them top AI stocks to watch in 2023:

  1. Company A

  2. Company B

  3. Company C

  4. Company D

  5. Company E

Microsoft (MSFT)

An image of Microsoft's logo with the text 'Artificial Intelligence Stock' written on it, representing the company's focus on AI technology.

Microsoft’s involvement in AI is undeniable, with the tech giant making significant investments in AI development and implementation. One of its notable investments is the multibillion-dollar partnership with OpenAI, which led to the integration of ChatGPT into Microsoft’s Bing search engine. Additionally, Microsoft has developed an AI-powered coding assistant called Microsoft Copilot.

As a leading figure in AI, Microsoft is well-positioned to benefit from the escalating demand for AI technology, making it an attractive AI stock to buy. The company’s strong AI portfolio, coupled with its commitment to advancing AI capabilities, is an indicator of its potential for long-term growth in the AI space.

Alphabet (GOOGL)

Alphabet, the parent company of Google, has made significant strides in applying AI technology to various aspects of its business. AI-driven solutions offered by Alphabet optimize:

  • Finance

  • Supply chains

  • Procurement

  • Sales

  • Marketing

Also, Alphabet has launched its AI-driven chatbot Bard, functioning similarly to ChatGPT and utilizing large language models, revolutionizing the way users obtain information from the internet.

With its robust AI portfolio and dedication to AI innovation, Alphabet shows immense potential as an appealing AI stock for investors. As AI continues to reshape industries, Alphabet’s leadership in AI development and implementation ensures its growth prospects remain strong, making it a top AI stock to watch in 2023.

Nvidia (NVDA)

Nvidia, a major player in the AI space, has a commanding position in the generative AI training market, thanks to its powerful semiconductors that enable AI applications. The company’s collaboration with Oracle to incorporate its comprehensive AI platform into Oracle Cloud Infrastructure highlights Nvidia’s commitment to providing AI capabilities for enterprise customers.

However, investors should consider potential risks, such as U.S. export bans restricting the sale of Nvidia’s products to certain countries. Despite these challenges, Nvidia’s dominance in the AI market and its focus on innovation make it an attractive AI stock for investors seeking long-term growth.

Amazon (AMZN)

Amazon, a global e-commerce giant, utilizes AI in various aspects of its business, including:

  • Its popular voice assistant, Alexa

  • Its cashierless stores, Amazon Go

  • AI-driven services like AWS Sagemaker, which provide cloud-based machine learning tools for developers to build, train, and deploy AI models

These initiatives further expand Amazon’s AI influence.

Investing in Amazon allows investors to capitalize on the company’s diverse AI-driven services, which are transforming industries from retail to cloud computing. Amazon’s commitment to AI innovation and its widespread adoption of AI technologies make it a compelling AI stock to buy for long-term growth. (AI), a Software-as-a-Service (SaaS) company, focuses exclusively on AI applications for enterprises. The company offers a Generative AI Suite, with Enterprise Search as its initial product, and has strategic partnerships with companies like Alphabet to develop new AI applications utilizing Google Cloud infrastructure. By providing top-notch ai services, ensures seamless integration of generative AI solutions for businesses.

As a unique player in the AI space,’s key strengths include:

  • Dedication to AI applications

  • Strategic partnerships

  • Distinct positioning in the market

  • Commitment to providing AI solutions for various industries

These factors make a potentially successful long-term investment and a top AI stock to consider for long-term growth.

AI-Driven Industries to Invest In

chart, analytics, woman

The AI revolution extends beyond the technology companies developing AI products and services. Various industries are leveraging AI technology to optimize operations and drive innovation, including cloud computing, semiconductors, and autonomous vehicles. Each of these industries presents unique investment opportunities for those looking to benefit from the growth potential of AI.

Investing in these AI-driven industries allows investors to spread out their portfolios and mitigate risk. By targeting companies at the forefront of AI adoption in these industries, investors can gain exposure to the numerous applications and advancements in AI technology, positioning themselves to benefit from the long-term growth of AI.

Cloud Computing

AI has had a profound impact on the cloud computing industry. Companies like Microsoft, Amazon, and Google have integrated AI into their cloud platforms to improve scalability, efficiency, and security. This has led to the development of AI-based cloud applications such as:

  • Chatbots

  • Recommendation systems

  • Image recognition

  • Predictive analytics

The cloud computing industry is expected to grow significantly as the demand for AI-based services increases. In fact, the global cloud AI market is projected to reach $215.39 billion by 2027, with a growth rate of 37.9%. Investing in AI-driven cloud computing companies allows investors to capitalize on this growth potential and benefit from the expanding market.


AI plays a significant role in the semiconductor industry, powering the chips and processors that enable AI applications. Companies like Nvidia and Taiwan Semiconductor Manufacturing are leading the charge in AI chip development, providing powerful semiconductors that are driving the AI boom.

Investing in companies that produce AI chips and processors allows investors to benefit from the growing demand for AI technology. As AI continues to advance and its applications expand across industries, the semiconductor industry is poised for substantial growth, making it an attractive investment opportunity for those seeking long-term gains.

Autonomous Vehicles

AI is revolutionizing the development of self-driving cars, with companies like Tesla, Waymo, and Nvidia at the forefront of this technology. AI enhances the functionality of autonomous vehicles by enabling path planning, navigation, and decision-making. AI systems can even simulate real-world conditions to safety-test autonomous vehicles.

The market growth for AI in the self-driving car industry is anticipated to be substantial, with experts forecasting an increase of over 55% to a value of US $14.3 billion by 2030. Investing in companies that are pioneering AI-driven autonomous vehicles allows investors to capitalize on this growth potential and benefit from the expanding market.

Investing in AI Exchange-Traded Funds (ETFs)

A graph showing the performance of AI ETFs

Global X Robotics & Artificial Intelligence ETF graph from Motley fool.

For investors looking to diversify their AI investments, AI-focused exchange-traded funds (ETFs) like BOTZ, ROBO, and IRBO offer an attractive alternative to individual stocks. These AI ETFs provide exposure to a variety of AI-related companies, allowing investors to benefit from the growth of AI technology without having to pick individual stocks.

Investing in AI ETFs allows investors to reduce risk and seize the long-term growth potential of AI stocks. These funds offer a diversified approach to AI investing, enabling investors to gain exposure to the various applications and advancements in AI technology while spreading risk across multiple companies.


The BOTZ ETF is an exchange-traded fund comprising 43 stocks from the technology, industry, and healthcare sectors, with an expense ratio of 0.68%. Its primary investments include:

  • NVIDIA Corp

  • Intuitive Surgical Inc

  • ABB Ltd

  • Keyence Corp

  • Fanuc Corp

The ETF encompasses various industries and countries, providing investors with a diversified approach to AI investing.

Over the last five years, the BOTZ ETF has had a compound annual return of 3.57%, demonstrating its potential for long-term growth. Investing in BOTZ gives investors exposure to a variety of AI-related companies and allows them to seize the increasing demand for AI technology.


The ROBO ETF is a diversified AI fund comprising 80 stocks, with a 0.98% expense ratio. Its primary investments include Hexagon AB Class B, Fanuc Corp, and Dassault Systemes SE. The ETF focuses on companies operating in the robotics and automation sector, offering investors exposure to a wide range of AI-related industries.

Financial websites like Yahoo Finance, Morningstar, and provide information on the performance history of the ROBO ETF, allowing investors to track its returns and make informed decisions. Investing in ROBO allows investors to benefit from the growth of AI technology and spread their AI investments across multiple companies.


IRBO is an AI-focused exchange-traded fund with 118 holdings, mainly based in the United States but with exposure to China and Japan. The ETF’s investments include companies like:

  • Meitu Inc.

  • Faraday Technology Corp.

  • Megaport Ltd.

  • fuboTV Inc.

This provides investors with a diversified approach to AI investing.

While the five-year return of the IRBO ETF is unavailable, the fund offers an attractive opportunity for investors looking to capitalize on the growth potential of AI stocks. Investing in IRBO allows investors to gain exposure to a wide array of AI-related companies and benefit from the growing AI market.

The Role of AI in Company Operations

A user talking to a ai customer service agent

Companies across various industries are harnessing the power of AI to improve their operations, from spam filtering and product recommendations to content creation. AI technology allows companies to uncover patterns from large data sets, resulting in improved customer experiences and outcomes, increased operational efficiency, and the development of new products and services.

Some notable examples of companies utilizing AI to optimize their operations include Amazon, which leverages AI to suggest products to customers, and Netflix, which uses AI to direct content creation and recommendations. The integration of AI into company operations highlights the growing importance of AI technology and presents potential investment opportunities for those looking to capitalize on this transformative technology.

Key Terms and Concepts in AI Investing

When venturing into AI investing, it’s important to familiarize yourself with essential AI terms and concepts. Artificial intelligence (AI) refers to the simulation of human intelligence in machines through programming, computer science, and datasets, enabling problem-solving and the development of machines with human-like characteristics.

Machine learning, a technique used in AI, allows algorithms to process large amounts of data and make predictions or decisions based on patterns and trends. In the context of AI investing, machine learning can be used to:

  • Analyze extensive financial data

  • Make more informed investment decisions

  • Perform sentiment analysis

  • Estimate returns

  • Identify risks

  • Optimize portfolios

Deep learning, a more sophisticated form of machine learning, focuses on learning hierarchical representations of data through artificial neural networks. In the context of AI stocks, deep learning can be used to analyze complex financial data and make predictions or recommendations for investment decisions.

Understanding these key AI terms and concepts can enable investors to make better decisions when evaluating AI companies and stocks. This knowledge can help investors identify potential growth opportunities and capitalize on the long-term potential of AI stocks.

Long-Term Outlook for AI Stocks

A graph showing the long-term outlook for AI stocks

The long-term outlook for AI stocks appears to be quite positive. According to various sources, the AI industry is forecasted to experience substantial growth in the upcoming years. Here are some predictions:

  • An increase of 26% to China’s GDP and 14.5% to North America’s GDP by 2030

  • A projected compound annual growth rate of over 60% for the next two years

  • A global AI market size estimated to reach USD 150.2 billion in 2023 and expand at a CAGR of 36.8% from 2023 to 2030

  • The potential for AI to double annual global economic growth rates by 2035

A long-term investment strategy is essential when investing in AI stocks, as it allows investors to:

  • Capitalize on the long-term growth prospects

  • Diversify their risk

  • Target companies leading AI adoption and innovation

  • Expose themselves to the numerous applications and advancements in AI technology

  • Position themselves to benefit from the long-term growth of AI.

Risks and Challenges in AI Investing

Investing in AI is not without risks and challenges. Potential concerns include privacy violations, discrimination, accidents, manipulation of political systems, lack of transparency and explainability, job losses due to automation, and social manipulation. Regulatory issues, such as prescribed regulations, financial data confidentiality, ethical considerations, and security vulnerabilities, could also impact AI investments.

Market volatility can also affect AI investments, as rapid changes in market conditions can render traditional trading strategies and models obsolete. However, AI can also be used to manage risk by tracking market trends and recognizing potential risks before they become problematic.

Understanding these risks and challenges can enable investors to make better decisions when investing in AI stocks.

How to Start Investing in AI Stocks

A graph showing the steps to start investing in AI stocks

The initial step to start investing in AI stocks is opening a brokerage account. Choose a broker, fill out the application, submit the necessary documents, and deposit funds into the account.

The subsequent step is to investigate AI stocks and ETFs, assessing the following factors:

  • The company’s financial stability and health

  • Competitive advantage in the AI industry

  • Valuation of the stock

  • Potential growth and market opportunities

  • Risks associated with investing in AI stocks.

Finally, allocate no more than 10% of your overall portfolio to individual stocks to limit additional risk.

Once ready to invest in individual AI stocks, purchase your selected AI stocks by choosing the preferred stock, entering the desired number of shares, and submitting the order.

Monitor your investments by tracking the performance of the stocks you have purchased in the stock market, researching any news related to the stocks, and making necessary adjustments to your portfolio based on stock price changes.

Following these steps will set you on the path to invest in the dynamic field of AI stocks and identify the best AI stocks to buy.

Evaluating AI Companies for Investment

When evaluating AI companies for investment, consider factors such as financial performance, market position, and growth potential. Review the company’s income statement, balance sheet, and cash flow statement to assess financial results, and compare the company’s performance to that of its competitors. AI-driven tools such as machine learning algorithms and natural language processing can also be utilized to analyze financial data, providing valuable insights for investment decisions.

In addition to financial metrics, consider non-financial factors such as customer satisfaction, employee engagement, and product quality when assessing an AI company. These metrics can give an indication of the company’s overall performance and potential for growth. Assessing AI companies based on these criteria can enable you to make better investment decisions in AI stocks.


Investing in AI stocks offers significant growth potential, as AI continues to revolutionize industries and reshape the global economy. By targeting leading technology companies, AI-driven industries, and AI-focused ETFs, investors can capitalize on the transformative power of AI and position themselves for long-term growth. Understanding the risks and challenges associated with AI investing, as well as the key terms and concepts, can help investors make more informed decisions when evaluating AI companies for investment. By adopting a long-term investment strategy and regularly monitoring AI investments, investors can navigate the dynamic landscape of AI investing and seize the exciting opportunities it presents.

Frequently Asked Questions

What is the best AI stock to buy?

Nvidia Corp and CrowdStrike are the top AI stocks to buy in November 2023. Both have strong AI exposure and have proven to be great performers in the S&P 500.

Is AI good to invest in?

Investing in AI stocks may offer high returns, but carries a high degree of risk. Exchange-traded funds which focus on AI can be a more balanced way to gain exposure to the sector, while AI stock performance when compared to other stocks and indexes can help assess potential investments.

Are Nvidia shares a good buy?

Based on analyst price targets and consensus, Nvidia’s stock appears to be a strong buy with potential for a 53.80% increase.

Is there an AI stock index?

Yes, there is an AI stock index called the AI-INDEX 15, which consists of 15 companies that design, create, integrate or provide artificial intelligence in some form. It is also tracked by various ETFs such as the Indxx Global Robotics & Artificial Intelligence Thematic Index and the Nasdaq CTA Artificial Intelligence & Robotics Index.

What are some top AI stocks to watch in 2023?

Considering their leading positions in the AI space, Microsoft, Alphabet, Nvidia, Amazon, and are top AI stocks to watch in 2023.


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