While Generative AI technology is complicated enough to understand without even bringing in the notion of how to invest in artificial intelligence, it's a topic that's becoming increasingly important to investors. The AI market is expected to reach $390.9 billion by 2025, with companies across industries investing in the technology to improve efficiency, productivity, and customer experiences. As such, many investors are looking for ways to get in on the action.
Amazon wants investors to know it won't be left behind in the latest Big Tech arms race over artificial intelligence. The company has been investing heavily in AI for years, with Alexa and AWS being just a few examples of its AI-powered products. In fact, Amazon CEO Andy Jassy recently told shareholders that the company will be "investing heavily" in artificial intelligence (AI) while also focusing on expanding its cloud and advertising businesses.
While much about the economy is uncertain, the rise of artificial intelligence is as sure a bet as investors can get. Here's a look at how investors can get in on the AI game.
One way to invest in AI is through exchange-traded funds (ETFs). There are several ETFs that focus on AI, including the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ) and the iShares Robotics and Artificial Intelligence ETF (AMEX:IRBO). These ETFs provide investors with exposure to companies that are leaders in the AI space, such as Nvidia, Alphabet, and Amazon.
Another way to invest in AI is by investing directly in companies that are leaders in the space. Nvidia, for example, is a company that is at the forefront of AI technology. The company's graphics processing units (GPUs) are used in many AI applications, including self-driving cars and voice recognition. Other companies to consider include Alphabet, Amazon, and Microsoft.
DataTrek Research Co-Founder Jessica Rabe breaks down the potential for artificial intelligence services to give out investing advice, which could disrupt the industry. She also notes that AI has the potential to help investors make more informed decisions by analyzing large amounts of data and identifying patterns that humans may miss.
The AI market has vast potential, with multiple companies likely to benefit from its development. Some of the key players in the space include Alphabet, Amazon, Microsoft, Nvidia, and Tesla. These companies are investing heavily in AI and are expected to be leaders in the space for years to come.
A look at the themes, companies, and funds in the generative AI space reveals some interesting trends. For example, many companies are investing in AI to improve customer experiences, while others are using the technology to improve efficiency and productivity. Additionally, many AI-focused ETFs are heavily invested in companies that are leaders in the space, such as Nvidia and Alphabet.
Where is Wall Street's AI revolution? Almost every industry, from architecture to entertainment, is testing generative artificial intelligence (GAI), but Wall Street has been slow to adopt the technology. However, that is starting to change, with companies like Goldman Sachs and JPMorgan Chase investing in AI-powered tools to improve efficiency and decision-making.
Alphabet's advertising business and cloud division are key generators of revenue for the company. The company's AI-powered products, such as Google Assistant and Google Cloud, are also becoming increasingly important to its bottom line. As such, Alphabet is a company to watch in the AI space.
In conclusion, investing in AI is a smart move for investors looking to get in on the ground floor of a rapidly growing industry. Whether through ETFs or direct investments in companies like Nvidia or Alphabet, there are plenty of opportunities for investors to capitalize on the potential of AI. With the market expected to reach nearly $400 billion by 2025, the time to invest in AI is now.
