Question 1

What Have Been The Best AI Stocks?

Accepted Answer

According to Forbes, these have been the big winners thus far:

Company | Stock Symbol | One-year Return

Nvidia (NVDA)	231.2%
Palo Alto Networks (PANW)	132.5%
Amazon (AMZN)	66.8%
Microsoft (MSFT)	62.3%
Cadence Design Systems (CDNS)	62.1%
Synopsys (SNPS)	53.9%
KLA (KLAC)	51.3%
Alphabet (GOOGL)	41.2%
UiPath (PATH)	41.2%
C3.ai (AI)	-5.0%

Data is current per February 7, 2024

This compilation draws from a meticulously crafted methodology to pinpoint premier AI stocks, spotlighting those that exhibit robust growth and promising prospects. Each stock selected trades on U.S. exchanges and adheres to a set of stringent criteria:

AI-Related Activities: Companies qualify by their involvement with AI in one of three distinct roles: as enablers, engagers, or enhancers.

Enablers are pioneers who develop the foundational products or technologies essential for AI.

Engagers integrate these AI innovations directly into their operations.

Enhancers, on the other hand, refine and expand upon existing AI technologies.

Utilizing the First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) as a primary resource, we identify stocks with a clear focus on AI, deliberately excluding those primarily involved in robotics.

Outstanding Performance Metrics: Each stock excelled in specific performance areas. Given the developing nature of the field and the relative youth of some companies, not all stocks demonstrate uniform characteristics. However, each one shines in at least one metric: innovation, market performance, or growth potential.

Growth and Return Potential: The factors in selecting the stocks include anticipated earnings per share (EPS) growth, historical EPS growth, and/or one-year return. This approach ensures that the stocks chosen stand out for their exceptional performance by these measures.

Moreover, to further refine the selection, all stocks meet the minimum threshold of a $1 billion market capitalization, a trading price above $5, and a daily average trading volume exceeding 500,000 shares.

These criteria filter through the vast expanse of AI stocks, isolating those who thrive in the present and have poise for future success. The emphasis on price momentum and earnings growth caters to the discerning investor, aiming for short-term gains and long-term investment growth.

This curated list is an invaluable resource for anyone navigating the dynamic and burgeoning field of AI investments.

Question 2

What Are AI Stocks?

Accepted Answer

AI stocks represent a rapidly expanding sector within the broader technology landscape. Currently, there's no universally accepted classification exclusively for AI. Instead, AI stocks encompass diverse enterprises engaged in artificial intelligence.
This category includes leading tech giants like Microsoft and Apple, who are at the forefront of developing proprietary AI technologies. Moreover, it encompasses entities critical to the fabrication of AI technologies, like the microchip producers Nvidia and Micron Technology. Additionally, the spectrum of AI stocks extends to entities solely focused on AI, exemplified by the publicly traded company c3.ai.
At its core, the realm of AI stocks is constituted by companies that are either pioneering in creating AI technologies, facilitating the development of these technologies through hardware and software support, or are dedicated entirely to leveraging artificial intelligence to offer innovative solutions and services. This broad coalition of companies, ranging from established tech behemoths to specialized firms, underscores the multifaceted nature of the AI industry and its integral role within the technological domain.

Question 3

How To Smartly Invest in AI Stocks?

Accepted Answer

Venturing into the realm of AI stocks mirrors the investment process in any other industry or sector, demanding thorough groundwork and understanding. Here's how you can embark on investing in AI stocks:

Industry Acquaintance: The initial step for any investor is to conduct comprehensive research to gain a deep insight into the AI industry and the array of companies operating within it. This foundational knowledge is crucial for understanding the sector's dynamics, trends, and the technological innovations driving its growth.

Stock Selection: With a solid grasp of the industry, investors are ready to identify the stocks they believe hold the most promise for long-term success. How does one find success in AI stock selection? By evaluating the companies' market position, growth potential, technological advancements, and financial health, then comparing that to what has been uncovered in the research and forecasting by trusted experts, the right stocks should be easily recognizable.

Stock Acquisition: Having pinpointed the prospective stocks, investors can acquire AI stocks through their brokerage accounts. This step marks the culmination of the selection process, transitioning from theoretical analysis to actual investment.

Professional Consultation: Despite the straightforward nature of the investment process, seeking the guidance of a financial advisor is highly advisable. A professional can provide tailored advice, considering the investor's economic situation, goals, and risk tolerance, ensuring a well-informed investment decision.

Embarking on an investment journey in AI stocks requires an understanding of the sector and a strategic approach to selecting and investing in companies with transformative potential. As with any investment, the aim is to balance opportunity with risk, aiming for a portfolio that reflects both the investor's aspirations and their commitment to navigating the complexities of the AI landscape.

Question 4

How To Pick AI Stocks?

Accepted Answer

Embarking on investing in AI stocks is akin to navigating the intricacies of any industry or sector, necessitating a comprehensive foundation and in-depth understanding. The process unfolds in several key stages, each demanding careful attention and strategic planning:

1. Industry Acquaintance: The voyage begins with an imperative to immerse oneself in exhaustive research to acquire profound insights into the AI industry and its diverse players. This step is vital for grasping the sector's dynamics, identifying prevailing trends, and understanding the groundbreaking technological innovations propelling its expansion. Such foundational knowledge lays the groundwork for informed decision-making, equipping investors with the ability to discern the nuances of the AI market and its future direction.

2. Stock Selection: Armed with a thorough understanding of the AI industry, investors are poised to sift through many stocks, pinpointing those with the brightest prospects for enduring success. The question then becomes, how does one excel in selecting AI stocks? The answer lies in a meticulous evaluation of each company's standing in the market, its potential for growth, the innovativeness of its technology, and its financial stability. By juxtaposing these findings against insights gleaned from research and expert forecasts, investors can identify the stocks that resonate most with their investment criteria and future expectations.

3. Stock Acquisition: With a clear target list of prospective stocks, the next step is to actualize the investment through purchases made via brokerage accounts. This phase culminates the preparatory work, transitioning from theoretical analysis to tangible action. It's a moment that marks the commencement of a potentially rewarding investment journey underpinned by strategic choices and informed speculation.

4. Professional Consultation: Despite the ostensibly straightforward nature of this investment process, the complexity and unpredictability of the market underscore the importance of consulting with a financial advisor. Professional guidance is invaluable, offering personalized advice considering an investor's financial circumstances, objectives, and risk tolerance. This ensures that investment decisions are informed and aligned with the investor's broader financial strategy.

Investing in AI stocks is not merely about capitalizing on the latest technological trends; it's about strategic foresight, meticulous planning, and a balanced approach to risk and opportunity. It requires a deep dive into the sector's potential, a keen eye for detail, and a commitment to staying informed about technological advancements and market shifts. As with any investment endeavor, the goal is to construct a portfolio that mirrors the investor's ambitions and dedication to mastering the complexities of the AI landscape, positioning themselves to reap the benefits of this dynamic and rapidly evolving sector.

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