If you’re thinking about investing in AI, you’re not alone. The global AI market is expected to hit $4700B by 2033—that’s a whole lot of zeros. But here’s the thing: AI investing isn’t just about picking a hot stock and hoping it skyrockets. The best investors know how to diversify, leverage automation, and position themselves for long-term growth.

Let’s break down the best ways to invest in AI—whether through stocks, ETFs, or automated strategies that take the guesswork out of investing.

1. Investing in AI Stocks: The Leaders and the Underdogs

If you’re looking for direct exposure to AI, individual stocks are a solid place to start. But not all AI-related companies are created equal. Some are already dominating the space, while others are under-the-radar opportunities with big upside potential.

AI Giants Worth Watching

These are the household names that have already established themselves as AI leaders:

• NVIDIA (NVDA) – The king of AI chips. Almost every major AI model, including ChatGPT, runs on NVIDIA hardware.

• Alphabet (GOOGL) – Google’s AI division (DeepMind) is pushing boundaries in machine learning and automation.

• Microsoft (MSFT) – With its investment in OpenAI and AI-powered cloud computing, Microsoft is a major AI player.

• Amazon (AMZN) – AI powers everything from Alexa to AWS machine learning services.

• Meta (META) – Meta is heavily investing in AI for social media, advertising, and the metaverse.

Smaller AI Stocks With Potential

If you’re looking for companies that could see massive growth as AI adoption accelerates, these could be worth considering:

• Palantir (PLTR) – Specializing in AI-driven data analytics for governments and businesses.

• C3.ai (AI) – A pure-play AI company offering enterprise AI applications.

• UiPath (PATH) – A leader in robotic process automation (RPA).

• SoundHound AI (SOUN) – Focused on AI-driven voice recognition and conversational AI.

The key to stock investing is diversification—don’t go all-in on one AI company just because it looks promising. Even strong businesses can face setbacks.

2. AI ETFs: A Smarter Way to Diversify

Not interested in picking individual stocks? AI-focused exchange-traded funds (ETFs) can give you broad exposure without the stress of stock-picking.

Some of the most well-known AI ETFs include:

• Global X Artificial Intelligence & Technology ETF (AIQ)

• iShares Robotics and Artificial Intelligence ETF (IRBO)

• ROBO Global Robotics & Automation Index ETF (ROBO)

These funds hold a basket of AI-related stocks, reducing risk while still positioning you for growth. ETFs are also more stable than individual stocks since they spread risk across multiple companies.

3. Using AI to Invest Smarter

What if you could invest in AI and let AI handle your investing? That’s where automation comes in.

Platforms like Surmount allow investors to automate their portfolios using AI-driven strategies—removing emotions and guesswork from the process. One of our standout offerings is the Artificial Intelligence Innovators Thematic Strategy—a long-term investment approach designed to capitalize on the rapid growth and innovation within AI.

This strategy focuses on 29 carefully selected public companies that are leading the charge in AI development across multiple industries, including technology, healthcare, biotechnology, and genomics. These companies have been chosen based on their market position, technological advancements, and potential for generating alpha—giving investors direct exposure to some of the most transformative AI-driven businesses.

Why AI-Driven Investing Makes Sense

AI can process massive amounts of financial data in seconds, spotting trends and opportunities human investors would likely miss. It can:

• Optimize portfolio allocations based on real-time market conditions.

• Backtest trading strategies to see what actually works.

• Manage risk dynamically, adjusting exposure as market conditions change.

AI-powered investing strategies can be a game-changer, especially for those who don’t have the time (or patience) to manually analyze stocks and market trends.

4. Venture Capital and Private AI Investments

For investors with higher risk tolerance, private AI startups can be an exciting opportunity. AI-focused venture capital (VC) funds and platforms like AngelList let you invest in early-stage AI companies before they go public.

However, investing in startups isn’t for everyone. The failure rate is high, and these investments are illiquid—meaning you can’t easily sell your shares like you would with a stock.

But if you believe in AI’s long-term potential and are willing to take the risk, getting in on the ground floor of a promising AI company could lead to massive returns.

5. The Long-Term Outlook: Is AI a Bubble?

Some skeptics argue that AI is in a hype phase, similar to the dot-com boom of the late 90s. And while some AI stocks are definitely overvalued, the technology itself is real and transformative.

The key to successful AI investing? Focus on fundamentals, not just hype. Look for companies with:

• Strong revenue growth and profitability.

• A clear competitive advantage in AI.

• Sustainable business models, not just flashy tech.

AI isn’t a passing fad—it’s a fundamental shift that’s going to impact nearly every industry. The question isn’t if AI will be a major investment theme over the next decade; it’s how you position yourself to capitalize on it.

Final Thoughts

AI investing offers massive opportunities, but like any investment, it requires strategy. Instead of blindly chasing AI hype, consider a mix of:

• Individual AI stocks (both established leaders and emerging players).

• AI-focused ETFs for diversification.

• AI-powered investment automation to remove emotion and improve decision-making.

• Private AI investments for high-risk, high-reward plays.

No matter which approach you take, AI is too big to ignore. The sooner you understand how to invest in it strategically, the better positioned you’ll be for the future.

The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.