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The market for artificial intelligence (AI) is expected to grow to nearly $306 billion in 2024, and to enjoy a compound annual growth rate (CAGR) of almost 16% through 2030. But the rapid growth of the industry has introduced a host of concerns and complications, including a potentially-unsustainable demand for energy and what many view as the need for legislation governing the creation, distribution, and use of fake images and videos.
Here, we take a closer look at five stocks trading on either the Nasdaq or the New York Stock Exchange (NYSE) using AI in a substantive way and which had the highest average daily trading volume in the last month. Data below are as of April 9, 2024.
Key Takeaways
- While many companies are exploring ways to integrate AI into their businesses, investors looking to target AI-focused companies might look to those currently using this technology in a substantive, meaningful way.
- With the AI landscape changing quickly, investors should watch for how legislators across the U.S. and globally develop laws concerning this powerful technology.
- The most popular AI-focused stocks on the Nasdaq or the NYSE for April 2024 include AMD, Apple, NVIDIA, Ford, and Intel.
- Average daily trading volume (30-day): 71.1 million
- Price: $169.56
- Market capitalization: $274.0 billion
- Performance (1-year): 85.8%
Semiconductor firm AMD designs and builds computer processors and similar products. It is one of the leading chip makers for other companies aiming to integrate AI into their operations. AMD’s products help to facilitate cloud, adaptive, and embedded computing. In March, AMD announced that Sony Semiconductor Solutions had selected its products for use in a major autonomous vehicle image sensor design.
- Average daily trading volume (30-day): 65.9 million
- Price: $168.59
- Market capitalization: $2.6 trillion
- Performance (1-year): 4.4%
Apple is a technology firm and among the largest companies in the world by market capitalization. It is known for a wide variety of computer, mobile, and wearable products, including iPhone, iPad, and the mixed-reality headset Vision Pro. The latter of these products facilitates virtual spatial computing in a wide array of industries.
- Average daily trading volume (30-day): 54.1 million
- Price: $846.04
- Market capitalization: $2.1 trillion
- Performance (1-year): 215.4%
NVIDIA is a semiconductor maker that has consistently been at the vanguard of the AI industry. Its chips have played a pivotal role in powering AI programs. Earlier this year, NVIDIA launched a new set of affordable graphics processing units (GPUs) aimed at making generative AI technology broadly available.
- Average daily trading volume (30-day): 48.7 million
- Price: $13.47
- Market capitalization: $53.5 billion
- Performance (1-year): 10.4%
Ford Motor is an automotive manufacturer that designs, builds, and markets a variety of trucks, commercial cars and vans, sport utility vehicles, and related products and services. Last year, the company founded a subsidiary, Latitude AI, specifically dedicated to developing AI-based automated driving technology for use in Ford vehicles.
- Average daily trading volume (30-day): 48.1 million
- Price: $38.23
- Market capitalization: $161.6 billion
- Performance (1-year): 17.3%
Intel is a technology company that makes computer chips, provides hardware, and offers data center solutions. Following the launch of a line of AI-focused chips late last year, Intel announced its newest chip built for AI applications, called Gaudi 3, in April.
Trading volume is a measurement of the total number of shares of a company traded over a particular timeframe. Higher trading volumes may indicate that a company or stock is especially popular and may suggest certain trends in market activity.
How We Selected Popular AI Stocks
We screened for AI stocks based on companies trading on either the Nasdaq or the NYSE with a minimum average daily trading volume of 1 million shares over the last 30 days as well as a positive total return in the last year. Our screen included only companies with share prices of $10 or more in order to avoid penny stocks. Next, we chose companies based on highest average daily trailing volume in the last month. To ensure our screen included companies meaningfully tied to the AI space in some way, we included only firms that have announced either a new product launch or a significant AI integration in the last year, as well as those that offer hardware or other tools used to facilitate AI capabilities for other companies.
While this screen aims to capture a broad array of AI-focused companies, there are also other ways to gauge whether a stock is meaningfully engaged with AI as well. Investors may wish to target companies deriving a certain percentage of revenues from AI-based business, for example, or firms that are included in AI-focused exchange-traded funds or indices.
Investors interested in targeting AI stocks as a group may find success with AI-focused ETFs. These funds may include a variety of AI-related stocks, including those that are developing AI technology, those putting AI into practice within existing business models, or other firms likely to benefit from a secular shift toward AI across industries. Investors can also make use of AI in the investment process by seeking out robo-advisors or other trading platforms integrating AI.
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As of the date this article was written, the author does not own any of the above stocks.