❇️5 Artificial Intelligence Stocks for Your Portfolio

Artificial Intelligence (AI) is more than just a trend—it’s transforming our world in real time. From healthcare to customer service, AI impacts nearly every industry, reshaping how we interact, work, and live. For investors, AI represents a major growth opportunity. In this newsletter, we'll cover five potential investment options to consider if you’re looking to ride the AI wave.

1. Microsoft (MSFT)

Microsoft has secured a solid foothold in AI by owning 49% of OpenAI, the creator of ChatGPT. This partnership goes deep: Microsoft has rights to 75% of OpenAI’s profits until their initial investment is fully repaid. Moreover, the collaboration isn’t limited to funding. Microsoft and OpenAI are developing cutting-edge supercomputers and data centers, positioning Microsoft to benefit from AI advancements for years to come. With its vast resources and ongoing innovation, Microsoft is set to remain a powerful player in the AI space.

2. Nvidia (NVDA)

Nvidia, known for pioneering the AI chip market, dominates with its high-performance GPUs, which are essential for AI applications. These chips are the backbone of AI processing, making Nvidia a critical supplier for companies leveraging AI technologies. As AI demand skyrockets, Nvidia is positioned to benefit significantly by continuously innovating within the GPU and AI chip markets, keeping them ahead of competitors.

3. Oracle (ORCL)

Oracle has grown its AI capabilities through its cloud infrastructure, used by companies across various industries to train AI models. With clients like Netflix, Microsoft, Intel, Walmart, Zoom, Uber, Toyota, FedEx, and Verizon, Oracle is in a prime position to capitalize on AI’s growing demand. As more companies seek to leverage AI to stay competitive, Oracle’s robust cloud infrastructure will continue to attract major clients and expand its influence.

Performance Table for $ORCL:

4. Taiwan Semiconductor Manufacturing Company (TSMC)

Taiwan Semiconductor Manufacturing Company (TSMC) produces nearly 90% of the world’s advanced semiconductor chips. These chips power everything from smartphones to high-performance AI applications, making TSMC indispensable to tech giants like Apple and Nvidia. As AI grows, so does the demand for the chips TSMC manufactures, positioning it as a vital component in the AI ecosystem.

Global Chip Manufacturing Capacity

Performance Table for $TSMC:

5. iShares Expanded Tech Sector ETF (IGM)

For those looking to gain broad exposure to the tech sector, including major players in AI, the iShares Expanded Tech Sector ETF ($IGM) offers a diversified approach. Managed by BlackRock, one of the largest asset managers in the world with $11.5 trillion under management, this ETF targets tech giants driving AI innovation, providing investors with a balanced portfolio in the AI space.

Performance Table for $IGM:

Top 10 Holdings of $IGM:

The Bottom Line

No investor wants to miss out on the AI wave, and these stocks and ETFs offer potential pathways to participate in its growth. From Microsoft’s stake in OpenAI to Nvidia’s AI-dominant chips, Oracle’s cloud services, and TSMC’s semiconductor power, each of these investments provides a unique approach to AI. For those seeking broader exposure, $IGM offers a diversified route, including top tech giants at the forefront of AI.

As always, it’s crucial to remember that AI investments, while promising, come with risks. Balancing AI-focused investments with other sectors can ensure a more stable portfolio as you pursue growth in this exciting, evolving field.