Guide to Selecting the Best Artificial Intelligence AI Stocks
There’s currently no X.AI Corp. stock price, as the shares of xAI are not trading publicly. If the AI stock you’re interested in is listed on a major stock exchange, you should be able to purchase it directly through your broker. If the company is not listed on a major exchange, however, but instead is traded over-the-counter (OTC), then due diligence is thoroughly recommended.
Factors to Consider When Investing in Artificial Intelligence (AI) Stocks
There is currently no way to buy xAI stock, as the company is a startup and not listed on the stock market. However, there are a couple of methods you could use to gain exposure to xAI without buying its stock. In January of this year, CNBC reported that xAI is seeking outside investment at a valuation of $15 billion to $20 billion. The company is reportedly looking to raise up to $1 billion in fresh capital.
Is xAI on the stock market?
These applications stretch the limits of what is currently possible with hardware alone. He joined the AI arms race in April when X.ai was founded, and the company purchased thousands of Nvidia GPUs. We partner closely with X Corp to bring our technology to more than 500 million users of the X app. OTC stocks—although often inexpensive—can be volatile and illiquid, making them difficult to buy and sell. AMD’s earnings dropped significantly in 2022, but analysts are forecasting a bounce back in 2024 and 2025.
- We are guided by our mission to advance our collective understanding of the universe.
- It’s always recommended, however, to consult a financial advisor before making any major investment decision.
- The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
- As such, a strategic approach that balances enthusiasm for AI’s potential with a pragmatic assessment of risks and market realities is essential for investors navigating this exciting yet challenging domain.
Discussions about the potential applications of AI are happening across many industries. In healthcare, AI algorithms can often analyze medical imaging faster and more accurately than human practitioners. In addition, AI may be able to accelerate the process of drug development by predicting how different compounds will behave. The complex nature of AI—encompassing machine learning, natural language processing, robotics and automation, and computer vision—presents further prospects and challenges. AI is a broad and fast-evolving field, characterized by the development of algorithms and computational techniques that enable machines to perform tasks that typically require human intelligence.
The decision to invest in AI stocks is one that needs to be made by each individual investor, depending upon that investor’s own portfolio and what they believe the future holds for the industry. Tesla’s average yearly EPS growth over the last three years is the highest on a relatively painless guide to double-entry accounting the list at 171.9%. Future growth is looking more subdued, but Tesla has surprised investors and analysts in the past. The stock is trading at all-time highs and has a P/E ratio of 42.8 and forward P/E of 36.2.
Investors can engage with them through regulated brokers like eToro, diversifying their portfolios in a sector poised for significant growth. EToro is a top platform for investing in AI stocks because it is available in over 150 countries, offers over 4,500 stocks and ETFs, and is trusted by over 30 million investors. Additionally, the AI sector is influenced by factors such as regulatory changes, ethical considerations of AI technologies, and the competitive landscape. Combining a thorough understanding of the AI industry with sound investment practices will position you to better capitalize on the investment prospects in this growing field.
Finally, there are pure plays on AI like the publicly traded company c3.ai. XAI is a private company, which means its shares are not available for public trading on the stock market. Unsurprisingly, there’s no shortage of investors trying to get exposure to the Musk-led AI company. XAI just raised $6 billion at a $24 billion valuation from a handful of venture capital and private equity firms. X.AI, founded by Elon Musk, is an AI company dedicated to advancing human understanding of the universe through scientific discovery. The team, known for contributions to major AI advancements, develops cutting-edge technologies like Grok, a conversational AI, and PromptIDE for prompt engineering.
Over the last decade, the share price has averaged returns of 27.5% per year. Since the company is just moving into profitability, the P/E ratio is high at 44. Investors are betting that the company can continue to grow, which may justify the high price valuation. The stock was an excellent performer in 2023 and is currently trading near a 52-week and all-time high.
Alternatives to investing in xAI
Every investment carries risk, and only you can know for sure if the risks of AI stocks are right for your investment portfolio. There is no official sector designation that accounts solely for AI yet. Instead, AI stocks are a loose collection of companies with interests in artificial intelligence.
It will most likely remain private, at least in the near future. Instead, investors can buy xAI stock alternatives among its competitors, invest in X (formerly Twitter) for second-hand exposure, or buy stock in Elon Musk’s other companies. For retail investors, the easiest way to invest in AI is to buy publicly traded stock. However, accredited investors can buy shares on Hiive, a pre-IPO marketplace. XAI is a private company, which means it doesn’t have a stock symbol or trade on a public exchange.
Since 2013, the EquityZen marketplace has made it easy to buy and sell shares in private companies. EquityZen brings together investors and shareholders, providing liquidity to early shareholders and private market access to accredited investors. With low investment minimums through our funds and with more than 42K private placements completed across 450+ companies, EquityZen leads the way in delivering “Private Markets for the Public.” Investing in artificial intelligence (AI) stocks is a prevailing topic in the financial media, as investors seek to capitalize on one of the most transformative sectors in the economy of the 2020s. XAI is a private company and is not listed on the stock market, meaning its shares are not publicly traded.
EquityZen’s network includes over 310K accredited investors interested in buying private company stock. These companies include major tech companies like Microsoft or Apple, which are both developing their own AI technologies. They also include companies instrumental in the production of AI technology, such as microchip manufacturer Nvidia.
Then, you should deposit some funds into your account to prepare to buy xAI stock alternatives. Frequently used funding methods include bank transfers, debit or credit cards, and transaction services like PayPal. As xAI remains in the private hands of Elon Musk, you cannot buy its stock. However, you can invest in his other business endeavor, Tesla (TSLA). It is his largest company and multinational giant known for being the world’s most valuable automaker and one of the largest global suppliers of clean energy and battery storage systems. As of February 2024, there is virtually no information regarding a potential IPO of xAI.
Should I Invest in AI Stocks?
The list of companies Musk was a founder or co-founder of includes Tesla, SpaceX, Neuralink, Boring Company, and PayPal. Out of these companies, only Tesla and PayPal (PYPL) were ever listed on the stock exchange, with the latter only going public after Musk left the company. There are two ways to exit your private company investment on EquityZen’s marketplace. The first is if the company has an exit event like an IPO, merger or acquisition. In that case, we will distribute the shares and/or cash to you directly.