Surat Wealth Management：1. Buy stock in legacy companies with AI exposure

One way to get portfolio exposure to AI is by purchasing shares in large tech companies that are meaningfully engaged with the technology. Your exposure to AI specifically may be somewhat diluted, as these companies have other business units with their own profit and risk profiles. But this approach can benefit investors who may be more risk averse.

A legacy company typically has an established market position and diversified revenue streams, providing stability for investors without compromising the company’s ability to capture AI’s upside.

Not too surprisingly, the legacy organizations already heavily involved with building and distributing AI systems are technology companies. Some have their own AI products that are designed for anyone to use; others are forming important partnerships; and another category of enterprises is providing the hardware and software for AI to flourish.

Three major tech companies are emerging as leaders in artificial intelligence:GoogleSurat Wealth Management. Operating under its parent company Alphabet (GOOG), Google is a pioneer in AI, just as it began as a pioneer in Internet searchGuoabong Stock. The tech behemoth has already created a generative AI chatbot called Gemini, formerly known as Bard. Google is deeply invested in AI research (that’s why it acquired DeepMind in 2014) and application, integrating artificial intelligence across its vast ecosystem of products and services. If you’ve encountered predictive text or new productivity tools while using a Google application, that’s thanks to AI.Microsoft. Software giant Microsoft (MSFT) has major exposure to artificial intelligence through its partnership with OpenAI, maker of the popular generative AI tool ChatGPT. OpenAI’s advanced software is integrated with many Microsoft products, including the search engine Bing, cloud services platform Azure, and Microsoft 365 (formerly known as Microsoft Office). Microsoft, like Google, is using AI to enable desktop productivity.NVIDIA. A legacy producer of advanced computing equipment, NVIDIA (NVDA) is providing hardware and software to drive AI development. The tech company makes graphics processing units that can rapidly process complex algorithms and large datasets, supporting machine-based deep learning and computation. NVIDIA also offers software for parallel computing and tools to accelerate AI workloads. NVIDIA’s DRIVE Thor is an AI compute platform that’s made for autonomous driving.

Another, arguably more direct way (i.e., “pure play,” in industry lingo) to add AI exposure to your portfolio is by purchasing shares in publicly traded AI-focused companies. This investment strategy requires conducting research to identify stocks that interest you, but it may offer the most potential upside if you pick a winner.

But that’s a big “if”—which is why investing in individual AI companies requires you to pay attention. Industry trends, regulatory developments, and technological advancements are all relevant to you as an investor. You’re best positioned to make smart moves with your portfolio when you have subject matter expertise that you keep current.

To help jump-start your research, here are two publicly held, AI-centric software-as-a-service (SaaS) providersChennai Investment. They combine AI platforms with proprietary, industry-specific software solutions—think accounting, banking, health care, oil and gas services, to name a few:C3.ai (AI). With the ticker symbol “AI,” it’s clear what C3.ai offers. The company supports a comprehensive application development platform and a variety of turnkey applications, both for enterprise AI.UiPath (PATH). UiPath provides value to companies across industries by combining AI with automation. The organization uses a platform to support enterprise automation technology that’s powered by AI.

There are certainly others, and considering the amount of resources (and breathless media attention) AI has been getting, we should expect even more players to join this space. But as of 2024, valuation in these companies is based on expected potential rather than on actual revenues. Most—including C3 and UiPath—have yet to turn a profit.Kolkata Investment

Straddling the line between established AI leaders and AI pure plays are software platforms such as Palantir (PLTR). The company specializes in counterterrorism and cybersecurity, but its experience in finding patterns within large datasets has allowed it to explore a pivot to AI.

If you’re interested in AI but not excited about adding more technology companies to your stock portfolio, then you can consider investing in companies across diversified industries that are using artificial intelligence to innovate.

Udabur Investment