Introduction
The global artificial intelligence (AI) market is set to skyrocket from $515.31 billion in 2023 to an astounding $2.74 trillion by 2032. This explosive growth creates amazing opportunities to invest in AI and artificial intelligence stocks, offering potential for significant returns.
The numbers paint an incredible picture of the AI revolution. Nvidia, one of the top AI stocks, saw its sales jump 114% to $130.5 billion in 2024. Google’s parent company, Alphabet, plans to invest $75 billion in AI infrastructure by 2025, highlighting the growing importance of AI infrastructure stocks. The impact of AI could reach $19.9 trillion through 2030, affecting the global economy in unprecedented ways.
Smart timing plays a crucial role in AI investments. Global AI funding doubled to $66.8 billion in 2021, attracting investors’ attention to companies that can revolutionize industries and boost profits. The best AI stocks offer high growth potential but also carry risks that investors need to understand.
This comprehensive guide breaks down practical, beginner-friendly strategies to help you invest in AI and related technologies. You’ll learn about individual stocks, AI startups, and ETFs like the Global X Robotics & Artificial Intelligence ETF, which manages assets worth $2.7 billion. Let us guide you through this exciting but complex world of intelligence stocks and AI investments.
Why Artificial Intelligence Stocks Are Worth Considering
The numbers tell an amazing story about AI investments. What started as a distant dream has now become a powerful force that’s reshaping our economic landscape.
AI is transforming every industry.
Artificial intelligence has broken free from its tech industry roots. Today, it spreads across healthcare, finance, manufacturing, transportation, and retail sectors, creating new opportunities to invest in AI across various industries. AI helps manage risks better and adds depth to financial market liquidity, but it also brings new challenges like market opacity and cyber risks. AI algorithms now exploit massive amounts of immediate data and execute trades at lightning speed based on set rules. This change matters because AI helps remove human bias and emotional reactions that often hurt long-term investment strategies.
The market potential is still growing
The growth story for artificial intelligence stocks keeps getting better. Recent research shows the global AI market will jump from $148.80 billion in 2023 to $1.10 trillion by 2029, with a compound annual growth rate of 39.7%. The generative AI market, valued at $16.87 billion in 2024, should grow at a CAGR of 37.6% through 2030. Enterprise spending on generative AI, which includes large language models, will likely rise 25% in 2025 and reach 50% by 2027. These numbers suggest that investors who make smart moves now could see big returns as the market for AI infrastructure stocks and related technologies continues to expand.
Big tech is heavily investing in AI
The biggest names in tech are going all-in on artificial intelligence stocks and technologies. The “Magnificent Seven” tech giants (Apple, Microsoft, Amazon, Google, Meta, Nvidia, and Tesla) pour hundreds of billions into AI infrastructure and AI workloads. Big tech factored in 33% of total capital raised by AI firms and nearly 67% of capital raised by generative AI firms in 2023. The three leading cloud providers—Amazon Web Services, Microsoft Azure, and Google Cloud—will spend over $250 billion in 2025 to support data centers and AI projects, further boosting the potential of AI cloud services.
This massive spending by tech giants provides valuable insights for anyone looking to invest in AI stocks. Their huge investments demonstrate strong faith in AI’s future profits and widespread adoption across industries.
Best Ways to Invest in Artificial Intelligence Stocks
Smart AI investing comes down to understanding several approaches that match different investor styles and comfort levels with risk.
Buy individual AI-focused companies.
Direct investments in AI-focused companies can lead to impressive returns. CoreWeave’s IPO in March 2025 stands out as perhaps the closest pure-play AI stock you can find. Their revenue jumped from near zero in 2022 to $1.90 billion in 2024, showcasing the potential for explosive AI revenue growth. Investors looking for direct AI exposure should consider companies like Palantir, which specializes in data fusion and launched its AI Platform in 2023, stimulating significant growth.
The list of top AI stocks includes other big names, too. Nvidia, a leader in AI infrastructure stocks, now has a market cap that exceeds $3 trillion. Microsoft develops memory chips for data centers and generative AI tools, while Alphabet works on large language models and self-driving cars, both representing solid intelligence stock options.
Use AI-themed ETFs for diversification.
ETFs allow you to invest in multiple artificial intelligence stocks at once, lowering your single-stock risk. The Global X Artificial Intelligence and Technology ETF (AIQ) leads the pack as the biggest AI ETF. It holds shares in companies like Tencent, Netflix, Palantir, Samsung, and Oracle, offering exposure to various aspects of AI technology.
Other popular choices include the Global X Robotics and Artificial Intelligence ETF (BOTZ), which targets industrial robotics and autonomous vehicles, and the iShares Future AI & Tech ETF (ARTY, formerly IRBO). These ETFs provide diversified exposure to AI infrastructure stocks, AI startups, and established tech giants focusing on AI workloads and cloud services.
Consider mutual funds with AI exposure.
Mutual funds offer professionally managed portfolios with different levels of exposure to artificial intelligence stocks. The Fidelity Select Semiconductors Portfolio (FSELX) tops the charts with 3-year and 5-year returns of 24.5% and 31.2%. The DWS Science and Technology Fund (KTCAX) follows with 3-year and 5-year returns of 16.5% and 20%. The T. Rowe Price Science and Technology Fund (PRSCX) brought in 3-year and 5-year returns of 14.7% and 16.6%.
These funds invest heavily in companies like Nvidia, Apple, and Meta Platforms, giving investors a way to tap into AI revenue growth without extensive research into individual artificial intelligence stocks.
Top Artificial Intelligence Stocks and ETFs to Watch
The AI market evolves rapidly, with new developments emerging daily. Here’s a look at some of the top AI stocks and investments that deserve your attention.
Nvidia, Microsoft, and Alphabet
Nvidia leads the AI chip market and made history as the first company to reach a USD 4 trillion market cap before settling at $3.97 trillion. The company’s revenue jumped 69% in Q1 2025, mostly from data center sales driven by AI workloads. Microsoft poured nearly $14 billion into OpenAI and added ChatGPT features across its products, leveraging large language models to enhance its AI cloud services. The company’s Azure OpenAI service now serves over 65% of Fortune 500 companies. Alphabet stands strong as an AI leader through its Gemini model and Waymo self-driving subsidiary, showcasing its commitment to diverse AI applications and infrastructure.
Emerging players like Palantir and UiPath
Palantir Technologies ranks among the best-performing S&P 500 stocks and is considered one of the top AI stocks for its innovative approach. The company’s Artificial Intelligence Platform (AIP) pushed U.S. commercial revenues up 71% year-over-year, with total commercial contract value shooting up 239% annually. UiPath, an AI startup success story, specializes in AI-powered robotic process automation (RPA). The company automates repetitive business tasks in finance, healthcare, and insurance sectors, demonstrating the practical applications of AI in various industries.
Popular ETFs: BOTZ, ROBO, IRBO
Investors looking to spread their risk across multiple artificial intelligence stocks might want to consider ETFs. The Global X Robotics & Artificial Intelligence ETF (BOTZ) manages $2.7 billion in assets and holds both Nvidia and industrial automation leaders. The ROBO Global Robotics & Automation Index ETF (ROBO) oversees $1 billion across 75 stocks, targeting computing, healthcare, and automation sectors. The newly branded iShares Future AI & Tech ETF (ARTY) invests in companies focused on generative AI, AI infrastructure, software, and related services.
Risks and Smart Strategies for Beginners
Investing in artificial intelligence stocks offers exciting growth prospects, but new investors need to be aware of the associated risks.
Understand volatility and hype cycles.
AI stocks have shown significantly higher volatility compared to the broader technology sector. The uncertainty in AI investments creates wider “cones of possibilities” than traditional stocks. This volatility was demonstrated in 2025 when artificial intelligence stocks experienced a roller coaster ride following the Trump administration’s announcement of tariffs. The Bank of England has warned that AI-driven trading could increase market volatility, as firms using similar AI models may take similar positions, potentially exacerbating financial instability.
Start small and diversify your portfolio.
When learning to invest in AI stocks, it’s crucial to diversify your investments. Spreading investments across different asset classes can reduce overall risk. AI tools can help by analyzing large amounts of data and suggesting the right asset allocation based on your risk tolerance. However, be cautious with AI portfolio recommendations that might show biases—research indicates AI tends to favor US companies (93% of recommendations) and often suggests higher-risk, higher-fee options.
Keep an eye on regulations and ethics.
Regulations surrounding AI are developing differently in various jurisdictions. Smart investors look for companies that openly share their AI strategies and policies, as these firms are usually better prepared for new regulations. We emphasize the importance of transparency and explainability in AI systems when evaluating artificial intelligence stocks.
Be wary of scams that claim to use “proprietary AI trading systems” and promise huge returns—the SEC has identified several patterns of AI-related investment fraud. Remember, if an AI investment opportunity seems too good to be true, it probably is.
Conclusion
Artificial intelligence stocks offer significant opportunities for beginners who take a strategic approach to the market. The sector’s growth projections are impressive—from $515.31 billion in 2023 to $2.74 trillion by 2032. However, success in this space requires a clear understanding of both rewards and risks associated with investing in AI infrastructure stocks, AI startups, and established tech giants.
A broad investment approach works best when starting your AI investment journey. You might want to mix established tech leaders like Nvidia and Microsoft with rising stars such as Palantir. ETFs like BOTZ or ROBO can help spread your risk across multiple artificial intelligence stocks. This diversified approach protects your portfolio against the high volatility common in AI investments.
Keeping track of regulatory changes is vital. Companies that remain transparent about their AI practices, including the development of large language models and AI workloads, will likely find it easier to navigate future regulations.
While AI investments generate significant buzz, research and patience should shape your decisions. This technology will revolutionize many industries, but not every company riding the AI wave will survive long-term. Your investment results depend on picking stocks based on fundamentals rather than excitement.
You don’t need deep technical knowledge to invest in AI stocks. Sound investment principles are sufficient. Take small steps, diversify your investments wisely, and maintain realistic expectations. This approach allows you to participate in the tech revolution while managing risks. The AI revolution opens exciting doors for investors who can navigate its complexities with intelligence, both natural and artificial.
Key Takeaways
Here are the essential insights for beginners looking to successfully invest in artificial intelligence stocks:
• Start with diversification: Combine established AI leaders like Nvidia and Microsoft with ETFs like BOTZ or ROBO to reduce single-stock risk while capturing sector growth.
• The AI market is exploding: The global AI market is projected to grow from $515 billion in 2023 to $2.74 trillion by 2032, creating massive opportunities to invest in AI infrastructure stocks and related technologies.
• Expect high volatility: Artificial intelligence stocks are significantly more volatile than traditional tech stocks due to hype cycles and regulatory uncertainty—start small and invest only what you can afford to lose.
• Focus on transparent companies: Choose AI companies that openly disclose their strategies and policies related to AI workloads and large language models, as they’re better positioned to navigate evolving regulations.
• Avoid get-rich-quick schemes: Be wary of fraudulent “proprietary AI trading systems” promising unrealistic returns—stick to legitimate, established investment vehicles in the artificial intelligence stocks market.
The AI revolution offers genuine wealth-building potential, but success requires patience, research, and smart risk management rather than chasing hype in the world of intelligence stocks and AI investments.
FAQs
Q1. What are some of the best ways for beginners to invest in artificial intelligence stocks? Beginners can invest in artificial intelligence stocks through individual AI-focused companies like Nvidia or Microsoft, AI-themed ETFs for diversification, such as BOTZ or ROBO, or mutual funds with AI exposure like Fidelity Select Semiconductors Portfolio. These options provide varying levels of exposure to AI infrastructure stocks, AI startups, and established tech giants working on AI technologies.
Q2. How volatile are artificial intelligence stocks compared to other tech stocks? Artificial intelligence stocks tend to be significantly more volatile than the broader technology sector due to factors like hype cycles, regulatory uncertainty, and the rapid pace of technological advancements in AI workloads and large language models.
Q3. What should investors look for when choosing AI companies to invest in? Investors should focus on companies that proactively disclose their AI strategies and policies, demonstrate strong fundamentals, and show potential for long-term growth in the AI sector. Look for firms with solid AI revenue growth, innovative AI cloud services, and a clear vision for leveraging AI technologies across various industries.
Q4. Are there any risks specific to investing in artificial intelligence stocks? Yes, risks include high volatility, potential regulatory challenges, ethical concerns, and the possibility of market instability due to AI-driven trading algorithms. Additionally, there’s a risk of falling for fraudulent schemes claiming to use “proprietary AI trading systems.” Investors should also be aware of the rapid pace of change in AI technologies, which can quickly render certain AI infrastructure stocks or AI startups obsolete.
Q5. How can I diversify my portfolio when investing in artificial intelligence stocks? You can diversify by investing in a mix of established AI leaders, emerging AI startups, and AI-focused ETFs. Additionally, consider spreading investments across different AI applications and industries to reduce overall risk. This might include exposure to companies working on large language models, AI workloads, AI cloud services, and various AI infrastructure stocks.
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