How To Invest In The AI Boom: AI Stocks And AI ETFs To Watch Out For

Yen Joon

Yen Joon

Last updated 01 August, 2023

Artificial intelligence is all the rage right now, thanks to the rise of ChatGPT. If you’re ready to invest in AI technology, here are a few ways to get into AI investing. 

It’s safe to say that ChatGPT has been a smash hit since it was released to the public in November 2022. The artificial intelligence (AI)-powered language processing tool reached 100 million active users just two months after launch. For context, it took TikTok nine months to reach 100 million. 

The buzz and novelty around ChatGPT have also benefited AI companies and their stocks. In fact, since the release of ChatGPT, shares of AI companies like Baidu (BIDU), SoundHound AI (SOUN), and C3.ai (AI) have soared in the months that followed as investors joined the AI craze.  

So, if you believe AI is set to take over the world and want to ride on the AI wave, below are a few ways to invest in AI with Webull. 

 

Disclaimer: This sponsored article on SingSaver serves as an educational piece and is not intended to be personalised investment advice. When investing, readers should do their own research and understand the associated risks. While this post is sponsored by Webull, the investment recommendations are our own.


How to Invest in AI

Invest in individual AI stocks

If you’re looking to stock pick individual AI stocks, below are four companies that have used AI to their benefit and could be worth investing in. 

AI stock
Why we picked it
Microsoft (MSFT)
Microsoft is one of the biggest tech companies in the world and views AI as a big part of its future.

In fact, it has invested US$10 billion into OpenAI and is integrating ChatGPT into its products such as Microsoft Office, Azure Cloud, Bing search engine, and Xbox gaming.
Nvidia (NVDA)
Nvidia plays an integral role in AI and machine learning; its graphics processing units (GPUs) are almost exclusively used to power data centres, autonomous cars, and AI chips — tasks that require a lot of computing power.

The company is also benefiting from the boom in AI, and AI forms a big part of its revenue. 
Tesla (TSLA)
While Tesla cars are not fully autonomous yet, the company uses AI to study real-time data collected from other Tesla cars on the road to develop and improve their self-driving cars.

The push to integrate AI has also pushed the company into the robotics field.
Amazon (AMZN)
Amazon is another company that uses AI extensively in its businesses, whether it’s Alexa, Amazon Go, Amazon Web Services, or its logistics arm.

Moreover, AI algorithms are utilised in their e-commerce, music, and online streaming businesses to give recommendations and determine product rankings. 

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⚡Flash Deal⚡: Be one of the first 100 applicants to snag an additional S$100 cash via PayNow on top of existing rewards when you open a Webull account. Valid till 5 June 2024. T&Cs apply.

SingSaver Exclusive Offer: Receive S$150 voucher or S$100 cash when you open a Webull account and fund a min. initial of USD2,000. Fund USD10,000 to get S$270 voucher or S$250 cash. Or, receive S$550 voucher or S$500 cash when you fund USD100,000. Stackable with Webull Welcome Offer. Valid till 5 June 2024 T&Cs apply.

Alternatively, score an Apple Watch SE (GEN 2) GPS 44mm (worth S$$432.95) or S$450 voucher or S$400 cash when you sign-up and transfer-in a minimum value of USD10,000 before 31st May 2024. Valid till 5 June 2024. T&Cs apply

Webull Welcome Offer: Enjoy up to 8.4% Moneybull yield, up to USD 1,050 cash vouchers, and up to USD 2,150 transfer-in rewards when you complete additional requirements. Valid till 31 May 2024. T&Cs apply.


Invest in AI ETFs

If you don’t want to go all in and invest in individual AI stocks, you can invest in AI-focused exchange-traded funds (ETFs). 

AI ETFs provide you exposure to different AI companies, allowing you to diversify your portfolio and risks. Furthermore, AI ETFs also have much lower costs.  

Below are some AI ETFs worth considering:

AI ETF

Why we picked it

ROBO Global Robotics and Automation Index ETF (ROBO)

This fund tracks companies that are driving innovations in robotics, automation, and AI.

Some of the top holdings include Harmonic Drive Systems, a company that makes components for industrial robots, semiconductors, and other manufacturing tools; IPG Photonics, a manufacturer of fibre lasers; and Samsara, a software company that helps track fleets of vehicles and other equipment. 

Global X Robotics & Artificial Intelligence ETF (BOTZ)

The Global X Robotics & Artificial Intelligence ETF (BOTZ) invest in companies that stand to benefit from the utilisation of AI and robotics, including industrial and non-industrial robots, autonomous vehicles, and automation.

Some notable holdings include Nvidia, which develops semiconductors that are vital to autonomous vehicles, AI computing, and robotics; and Fanuc, a manufacturer of factory automation products such as lasers and industrial robots.      

ARK Autonomous Technology & Robotics ETF (ARKQ)

The ARK Autonomous Technology & Robotics ETF (ARKQ) is a fund actively managed by Cathie Wood, a well-known fund manager.

This fund consists of stocks that are focused on value and growth. Some of its holdings include Tesla, Nvidia, and UiPath, a software company that develops robotic process automation software.

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How to buy AI stocks and ETFs on Webull

If you're looking to invest in AI stocks and ETFs, you'll need to open an online brokerage account. Ideally, you'll want to choose one that aligns with your investment goals, such as product offerings, safety, features, promotions, commission, and account fees.

One such online brokerage platform is Webull. Webull offers commission-free* trading for US stocks and ETFs with zero platform fees. It also has easy-to-use web and mobile trading platforms, which are suitable for both beginners and seasoned investors. 

Additionally, it also supports fractional shares trading from as low as US$5 per fractional share. 

Instead of buying a whole share, the fractional share feature allows you to buy high-priced shares at a fraction of their price, thus, making it more accessible to own shares of some of the biggest companies in the world such as Alphabet (Google), Microsoft, Amazon, Apple, Tesla, and Meta (Facebook) — even if you don't have a large capital.

Here's how to buy stocks on Webull:

1. Open your account on the Webull app

2. Tap on 'markets'

3. Tap on the magnifying glass

4. Search for the stock that you want to buy 

5. Tap 'trade'

6. Choose between, market, limit, stop, stop limit, or trailing stop order

7. Select the quantity that you want to buy

8. Review and submit order

WEBULL_BLOGARTICLE_800x250

⚡Flash Deal⚡: Be one of the first 100 applicants to snag an additional S$100 cash via PayNow on top of existing rewards when you open a Webull account. Valid till 5 June 2024. T&Cs apply.

SingSaver Exclusive Offer: Receive S$150 voucher or S$100 cash when you open a Webull account and fund a min. initial of USD2,000. Fund USD10,000 to get S$270 voucher or S$250 cash. Or, receive S$550 voucher or S$500 cash when you fund USD100,000. Stackable with Webull Welcome Offer. Valid till 5 June 2024 T&Cs apply.

Alternatively, score an Apple Watch SE (GEN 2) GPS 44mm (worth S$$432.95) or S$450 voucher or S$400 cash when you sign-up and transfer-in a minimum value of USD10,000 before 31st May 2024. Valid till 5 June 2024. T&Cs apply

Webull Welcome Offer: Enjoy up to 8.4% Moneybull yield, up to USD 1,050 cash vouchers, and up to USD 2,150 transfer-in rewards when you complete additional requirements. Valid till 31 May 2024. T&Cs apply.


Why you should invest in a cash management account

If you’re a conservative investor, here’s a ‘safer’ way to invest: a cash management account.

A good example is Webull’s cash management account, Moneybull, which allows you to invest your idle cash and earn up to 4.52%^ 7-day yield p.a., which is higher than most high-yield interest accounts.

Moneybull is a wealth management tool designed for margin accounts to earn a yield on idle cash while maintaining liquidity and low risk. Your funds are invested in underlying cash funds, which are essentially mutual funds that invest in short-term debt securities which have very low risk.

Screenshot_20230328_112707_Webull (1)

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Why Moneybull is a good choice

Apart from not charging any fees for Moneybull, there’s a low barrier with a minimum investment of just US$1 or S$1 to get started. 

The standout benefit of Moneybull is the flexibility — you can continue trading with your Webull margin account even when your funds are (safely) in Moneybull. 

You’ll never have to feel FOMO on market trends while your funds are parked elsewhere. In fact, you can rest assured that your cash is working round the clock for you. 

You’ll also receive 99% of the market value of your Moneybull position, which will be added to your buying power for trading.

webull-moneybull

Here's how you can auto-subscribe to Moneybull on Webull:

  1. Tap the Wealth logo at the bottom of the screen

  2. Select either the USD or SGD fund under Moneybull

  3. Choose your 'Retained Amount'

webull-moneybull-wealth


About Webull

Webull is one of the top brokerages in the US and has more than 35 million global users. The company has also received several accolades, including the Best Investor Community and Best Investment App in 2021. 

Investors can enjoy 0 commission fee* for US trades and trade US/HK stocks and options, mutual funds, and more on the Webull platform.

^Figures shown are based on 7-Day Yield (P.A.) as of 13 March 2023 and not an indication of future performance.

*Terms and conditions apply. For detailed terms and conditions and full disclaimer, please refer to Webull’s website at https://www.webull.com.sg/. This advertisement has not been reviewed by the Monetary Authority of Singapore. Telsa is not a sponsor or involved in the activity in any manner.


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How to Build a Passive Income Portfolio Using ETFs (And Why You Should)
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In my past life, I was always broke because of a lack of financial literacy. Now, I publish a few posts every week* on personal finance to help you manage your money better. *I mean, I’ll try

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