Posted in
Education
By: Tom Gentile
on June 23rd, 2023
Do you hear that? It’s the new buzzword in every financial news story, every earnings announcement. I’m talking about AI. Artificial Intelligence. But with all the talk, what are the best stocks in this space to invest in, and more importantly, how?
Investing in AI – Building Your AI Powered Stock List
This is Part 1 of a Two Part Session on AI investing. Today we are going to discuss how to build a stock list using AI stocks, and it starts out quite simple. I’m going to ask Chat GPT to build one for me…
It responded to me with 19 companies involved in one way or another with AI.
Alphabet Inc. (GOOGL)
Microsoft Corporation (MSFT)
NVIDIA Corporation (NVDA)
IBM (IBM)
Amazon.com, Inc. (AMZN)
Baidu, Inc. (BIDU)
Tencent Holdings Limited (TCEHY)
Intel Corporation (INTC)
Salesforce.com, Inc. (CRM)
Alibaba Group Holding Limited (BABA)
Qualcomm Incorporated (QCOM)
Apple Inc. (AAPL)
Facebook, Inc. (FB)
Sony Corporation (SNE)
Cognizant Technology Solutions Corporation (CTSH)
Twilio Inc. (TWLO)
Palantir Technologies Inc. (PLTR)
Splunk Inc. (SPLK)
Nuance Communications, Inc. (NUAN)
Ok so let’s take what ChatGPT has given us and dig a bit deeper. First I am going to add these to alist to keep track of, but I need more…
I need to know about market cap, so let’s look into this site – www.companiesbymarketcap.com
Immediately, this website gives us a list of all companies by market cap, but if you just want the AI companies, click in category at the top and click on AI. The result is 30 companies. It’s possible that 19 of these are the same as ChatGPT but there are 11 more that I didn’t get. I want to add this to my list as well.
I also said I wanted to find out which of these were optionable. Well, here’s the answer. From the ChatGPT list I got 12 optionable stocks out of 19. From Companies with Market Cap, I got 23 optionable stocks out of 30. Total = 35 optionable stocks.
Below is an updated list of optionable AI stocks in Alphabetical Order:
AAPL Apple
AI C3.ai Inc
AMZN Amazon.com
AUR Aurora
BABA Alibaba
BBAI Bigbear Ai Inc
BIDU Baidu
BY Byline Bancorp Inc
CRM Salesforce.com
CRNC Cerence Inc
CTSH Cognizant Tech Solution
DT Dynatrace Inc
EMBK Embark Technology Inc
EXAI Exscientia
GOOGL Alphabet Inc.
IBM International Business Machine
INOD Innodata
INTC Intel
LTRN Lantern Pharma
MBLY Mobileye
MSFT Microsoft
NVDA Nvidia
ON On Semiconductor
PATH Nupathe
PLTR Palantir
PRO Pros Holdings
QCOM Qualcomm
S Sentinelone
SONY Sony Corp
SPLK Splunk Inc
STEM Stem Inc
TSLA Tesla
TSP Tusimple
TWLO Twilio Inc
UPST Upstart
I’m not done yet.
Some of these companies I have never heard of, so I want to run this one more time for price movement. If the latest Bull move in the stock market is in AI stocks, then I want the companies that are pushing the markets higher. I am now going to take my AI stock list, and rank it YTD (Year-to-Date), to see what stocks in this list are in the top 10 percent of their 2023 range.
And here we are. My list has nearly been cut in half. 16 optionable stocks that have largely been the reason the stock market is higher in the last quarter. From 0-100, these stocks are trading in the 90+ stock range for this year. The top 5 are hitting new highs for the year as we speak.
This list will be a moving target, as some of these may drop off over time as others may come on. But looking at the surface, there are a lot of well-known names on this list. Your take away isn’t the names, it’s the involvement of AI that they are in today.
Next week I will discuss Investing Strategies in this group… till then!
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
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Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
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