Artificial Intelligence at First Trust Nasdaq،Robotics ETF was up 24% last year
Artificial Intelligence، AI، has been with the world a long time، but it came more into focus with the release of ChatGPT and a plethora of similar apps in late 2022 and these apps could write reports، sort through data and find better ways of doing a number of tasks، which created a strong surge in AI related stocks، and many have done well over the past year and this year to date.
First Trust Nasdaq Artificial Intelligence rose 24%
Artificial Intelligence، AI، is a growing field، and AI-related ETFs have outpaced the S&P 500 by a significant margin year to date، for example، by mid last year، the SPDR S&P 500 Trust was up 18% while the First Trust Nasdaq Artificial Intelligence and Robotics ETF was up 24%، therefore، many investors want to consider increasing their exposure to this corner of the market that accounting and consulting firm PwC، also known as PricewaterhouseCoopers، estimated that AI could contribute $15.7 trillion to the global economy by 2030.
Artificial Intelligence، AI، automation and robotics are disrupting virtually every industry that in the past year، the world has gotten a firsthand look at remarkable advances in AI technology، including OpenAI's ChatGPT AI chatbot، GitHub's Copilot AI code generation software and Google's Gemini AI model.
Handful of stocks have AI and automation as a central part of their businesses
Artificial Intelligence، AI، whether it be machine learning، large language models، smart applications and appliances، digital assistants، synthetic media software or autonomous vehicles، companies that aren't investing in AI products and services risk becoming obsolete as well as countless companies stand to benefit from AI، but a handful of stocks have AI and automation as a central part of their businesses.
US News Magazine reported that with these numbers، it’s no wonder that Artificial Intelligence، AI، stocks have started to get attention from investors and here are the 10 best-performing AI stocks which tend to fall into one of two categories: blue-chip technology companies that have invested in or partnered with AI developers، and small، experimental companies that are completely focused on AI development.
It is better to invest in the best Artificial intelligence، AI، stocks
According to Analysts، it is better to invest in the best Artificial Intelligence، AI، stocks such as Microsoft Corp.، Nvidia Corp. and Alphabet Inc. (GOOGL) as the rapid rise in prominence of the technology is quite striking to a handful of players such as the firm behind ChatGPT، OpenAI.
Yet، in just a year، Artificial Intelligence، AI، is at the forefront of the media، investor، and even government attention as the advances in decision making offered by data science enable organizations to upscale their operations، as since it led the stock market to rise in 2023، AI is naturally at the front of attention in 2024 as well.
The first two months of a year are particularly important for markets
The first two months of a year are particularly important for markets as they provide them with the perfect data to set the tone for the rest of the year and these come in the form of earnings reports، and for the Q1 2024 earnings season، all that anyone can talk about is Artificial Intelligence، AI.
The year started off with the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) assuring investors during its earnings call that it was in a stable position to capture any growth in the demand for AI chips and its CEO C.C. Wei shared that TSMC is working with all the major players in the global Artificial Intelligence، AI، industry.
The surge in Artificial Intelligence since last year
The surge in Artificial Intelligence، AI، related demand in 2023 supports our already strong conviction that the structural demand for energy-efficient computing will accelerate in an intelligent and connected world، while TSMC is a key enabler of AI applications.
No matter which approach is taken، Artificial Intelligence، AI، technology is evolving to use more complex AI models، as the amount of computation required for training and influence is increasing، as a result، AI model need to be supported by more powerful semiconductor hardware، which requires use of the most advanced semiconductor process technologies which contain the major portion of the market in terms of semiconductor component in AI.
