How smart is it to trade artificial intelligence stocks?

Artificial intelligence (AI) is becoming more and more a part of our lives…

The U.S. economy is evolving at an unprecedented pace. Companies that fail to innovate disappear, and companies like those in the FANG group step in to replace them.

Unlike the tech stocks from the dot-com bubble, these companies have plenty of room to expand and innovate. Several of them are investing in AI.

AI doesn’t have the best reputation — pop culture often portrays it as the enemy. Let me assure you … In its current form, artificial intelligence can’t take over the world.

But, yeah, these companies can make for smart trades — if you do your research. Here’s what to watch in 2023…

Artificial Intelligence Stocks’ Performance in 2023

Artificial intelligence stocks have been the hottest stock market sector in 2023.

A lot of companies, big and small, have been integrating AI software into their businesses. Automation is huge. And intelligent analysis of consumer data helps companies be more efficient.

These productive technologies are made possible by advancements in artificial intelligence.

And as AI technology advances, artificial intelligence products will become less expensive. That means more companies could use the technology.

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What to Expect From Artificial Intelligence Stocks

I think we’re only seeing the beginning of a massive AI revolution. As AI technology improves, more companies will start using it on a massive scale.

In 2024, AI could become an even bigger part of our everyday lives. It’s likely that more companies will adopt AI-powered tools and technology. And that can mean even more growth in this industry. The impressive gains and growth of many tech stocks can reflect that.

I’ll be the first to warn you: AI stocks can be risky. They don’t move slowly like blue-chip stocks.

If we’re talking about artificial intelligence penny stocks, the risks are even higher. But I love to take advantage of penny stock volatility. And with the right risk management strategy, artificial intelligence penny stocks could provide great trading opportunities.

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Top Artificial Intelligence Stocks to Watch in 2023

My AI stock picks for 2023 are:

• NASDAQ: NVDA — NVIDIA Corp. — The AI Sector Leader Stock
• NYSE: AI — C3.ai, Inc. — The AI Sector Leader Mid-Cap Stock
• NASDAQ: MSFT — Microsoft Corp. — The ChatGPT Partnership AI Stock
• NASDAQ: GOOG — Alphabet Inc. — The Bard Chatbot AI Stock
• NASDAQ: AAPL — Apple Inc. — The AI Giant in Waiting
• NASDAQ: META — Meta Platforms Inc. — The Underestimated AI Mega-Cap Stock
• NASDAQ: BIDU — Baidu Inc. — The Google of China
• NASDAQ: APLD — Applied Digital Corp — The AI Cloud Services Stock
• NASDAQ: AAOI — Applied Optoelectronics Inc. — The Microsoft Partnership AI Stock
• NASDAQ: IDAI — Trust Stamp — The AI Authentication Penny Stock
• NASDAQ: GFAI — Guardforce AI Co., Ltd. — The Post-Dilution AI Penny Stock Supernova
• NASDAQ: CXAI — CXApp Inc. — The Consolidating AI Penny Stock Supernova
• NASDAQ: SOUN — SoundHound AI, Inc. — The AI Penny Stock Dip Buy
• NASDAQ: INOD — Innodata Inc. — The AI Stock Grinder
• NASDAQ: MARK — Remark Holdings Inc. — The Reverse Split AI Penny Stock
• NASDAQ: MCLD — mCloud Technologies Corp. — The AI-Assisted Wind Power Penny Stock
• NYSE: BB — BlackBerry Ltd. — The AI Cybersecurity Stock on the Verge of a Buyout

Artificial intelligence companies aren’t all the same. They tend to work on different versions of AI and target different sectors.

Picking AI stocks can be difficult — few publicly traded companies solely focus on AI. The industry is still in its early stages.

Here are a few artificial intelligence stocks to watch in 2023 … Note that I’m watching these stocks. There’s no guarantee any of them will offer a trading opportunity.

For more tips on how to build and maintain a watchlist, check out this post.

Want to know which stocks I’m watching each week? Subscribe to my no-cost weekly watchlist. I’ll send my picks right to your inbox each week.

#1 NVIDIA Corp. (NASDAQ: NVDA) — The AI Sector Leader Stock

My first AI stock pick is NVIDIA Corp. (NASDAQ: NVDA).

NVDA has been one of the best performing AI stocks in 2023. Through the year’s first 8 months, it’s up more than 220% …

Unlike some of the other AI stocks out there, it’s held onto its gains.

It’s currently the leading supplier of graphics cards for computer gaming and AI systems. Its chips specialize in the deep-learning category of AI. That’s key to the entire artificial intelligence process.

Other companies have used NVDA chips to analyze large sets of data to train their models. These systems analyze old data to find patterns that can be applied to new data as it enters the system. (Kinda like smart traders do with the markets.)

Overall, NVDA is a well-positioned company. Many of the companies below use NVDA graphics cards.

#2: C3.ai, Inc. (NYSE: AI) — The AI Sector Leader Mid-Cap Stock

My second AI stock pick is C3.ai, Inc. (NYSE: AI).

Sometimes, you just have to look at the name.

AI has been capitalizing on sector demand in 2023. At one point in the year, it was up over 300%.

It’s made awesome gains for a high-priced stock with a relatively high float.

Right now, it’s in a period of consolidation. If it can hold support, it could be ready for its next explosive leg up.

#3 Microsoft Corp. (NASDAQ: MSFT) — The ChatGPT Partnership AI Stock

My third AI stock pick is Microsoft Corp. (NASDAQ: MSFT).

Early in 2023, MSFT announced a partnership with ChatGPT-maker OpenAI. MSFT soon brought the hottest property in AI to its Bing browser.

It gained more than 50% over the first 6 months of 2023 — that’s awesome for one of the most valuable stocks in the world!

This isn’t MSFT’s first foray into AI. In 2017, MSFT acquired Canadian AI company Maluuba. Then in 2018, it acquired two more AI companies.

MSFT belongs on your radar — even if it’s just to trade sympathy plays like Applied Optoelectronics Inc (NASDAQ: AAOI), an AI stock that’s up 600%, and partnered with MSFT in July.

#4 Alphabet Inc. (NASDAQ: GOOG) — The Bard Chatbot AI Stock

My fourth AI stock pick is Alphabet Inc. (NASDAQ: GOOG).

Like Microsoft, Alphabet (Google’s parent company) started its AI endeavors by acquiring smaller, nonpublic AI companies. And so far, it’s acquired more of these companies than any other tech firm.

After Microsoft announced its Bing chatbot, Google rushed its own chatbot, Bard. Bard wasn’t nearly as polished as ChatGPT, but GOOG stock is still up 45% since the year started.

What’s more — GOOG has managed to hold onto those gains. Its chart is one of the cleanest stair stepper patterns you’ll see in a real stock.

Check out this stair stepper breakdown here.

And GOOG owns several companies in the automated driving space that could benefit from breakthroughs in artificial intelligence.

#5 Apple Inc. (NASDAQ: AAPL) — The AI Giant in Waiting

My fifth AI stock pick is Apple Inc. (NASDAQ: AAPL).

AAPL is the largest company in the world by market capitalization. The company’s focus on AI has been primarily for its consumer devices — the goal is to improve the user experience. Most of its new devices have special chips to power the complicated AI engine.

In August, Apple CEO Tim Cook announced a big move into the AI space. 

It hasn’t made any moves as notable as Microsoft or Google. But Apple has a habit of holding its cards close to its vest.

To date, the company has sold over one billion iPhones … That means AAPL has the potential to put AI into the hands of over one billion people. That can have a worldwide impact.

#6 Meta Platforms Inc. (NASDAQ: META) — The Underestimated AI Mega-Cap Stock

My sixth AI stock pick is Meta Platforms Inc. (NASDAQ: META).

META had a rough 2022. But it hasn’t gotten enough credit for the strides it’s made in 2023.

Through August, the stock is up more than 160%. According to an increasing number of analysts, there’s even more room to grow.

The company’s a cash-flow machine, and there are no signs that its ad revenue will slow down. Its increased AI capacities are only increasing profitability, by helping to better target ads.

What’s more — UBS analysts estimate that a Facebook chatbot alone could add $7.5 billion in annual revenue.

<h3 “BIDU”>#7 Baidu Inc. (NASDAQ: BIDU) — The Google of China

My seventh AI stock pick is Baidu Inc. (NASDAQ: BIDU).

BIDU is called the ‘Google of China.’ The companies have similar business models and help consumers navigate the internet. Like Alphabet, BIDU is heavily investing in AI because of the technology’s ability to improve its search engine.

China has a more competitive search engine market than the U.S., and Baidu believes AI can give its product a competitive advantage.

Artificial Intelligence Stocks Under $10 To Watch

It’s good to see what’s going on at the upper end of the market. That’s where the big money is. But that doesn’t mean there aren’t smaller companies looking to leverage AI in their operations.

As artificial intelligence continues to grow and more corporations use it in their daily operations, more companies will flood into the industry. Understanding the big picture can help you be a smarter trader.

These companies are less established than the ones listed above, but they have explosive growth potential — if this industry takes off.

Remember: Always do your own research before making any trades. Make a detailed trading plan and stick to it. Never risk more than you can afford. Always be careful when buying any stock online and remember to cut losses quickly. 

#8 Applied Digital Corp (NASDAQ: APLD) — The AI Cloud Services Penny Stock

My eighth AI stock pick is Applied Digital Corp (NASDAQ: APLD).

I’ve only managed to trade this stock once.

I pulled $460 from it in July (starting stake $14,920).

And it’s still on the watchlist …

The price gapped up on June 16 after the company announced its first major AI customer.

All told it managed to launch over 240%.

Since reaching highs on July 23, it’s managed to consolidate and hold gains.

That’s a great sign.

Sideways consolidation is a huge hint the price could spike higher in the future.

As long as the price stays within its zone, this stock is in play. If it breaks to new highs with high volume we’re off to the races.

#9 Applied Optoelectronics Inc. (NASDAQ: AAOI) — The Microsoft Partnership Penny Stock

My ninth AI stock pick is Applied Optoelectronics Inc. (NASDAQ: AAOI).

Since late May, the price has spiked over 550%.

I’ve already managed to profit over $1,186 from the price action (click the link for individual trades.

And even though the price is on an insane run, I still think there will be trade opportunities ahead.

First of all, it’s entirely possible the price shoots even higher.

The company announced a supply deal with Microsoft in June.

If we set the AI sector aside for a moment, a partnership with a famous and successful company like Microsoft is a huge catalyst.

The AI catalyst is the icing on the cake.

If the price breaks out again, I’ve got a plan … 

With that said, there’s a possibility the price tanks.

Maybe Microsoft rips up the deal. The hype may fade. Anything can happen in the stock market — my two decades in the industry have taught me 99% of penny stock spikes fail eventually.

The good part is, if I keep a realistic mindset, I’m able to surf the momentum without getting attached.

And … there are ways to make money on the way down.

It’s not short selling. It’s called panic dip buying. Watch my video below for more details …

AAOI is a watchlist no-brainer.

There’s money on both sides.

Artificial Intelligence Stocks Under $5 To Watch in 2023

OK, enough with the boring large-cap and high-priced AI stocks … Let’s look at some artificial intelligence penny stocks that could have the kind of potential I look for in trading.

#10 Trust Stamp (NASDAQ: IDAI) — The AI Authentication Penny Stock

My tenth AI stock pick is Trust Stamp (NASDAQ: IDAI).

This company makes identity authentication technology.

It’s sort of a counter to AI technology, but it’s still an essential part of the industry.

After all … how do we tell who’s a robot and who’s a human?

The chart shows former spikes in 2023. That’s an encouraging sign, past spikers can spike again.

Sure enough, on August 1 the price started running after a press release that announced a substantially increased customer base.

I managed to trade it twice on August 2 for a total profit of $1,255 (click the link for individual trades). And I’m still watching it for more trade opportunities.

So far, the price managed to launch over 240%.

As I type this it’s on a dip off the highs. That’s good news …

We don’t want to buy at the highs, this thing could crash at any time.

And now that we have a clear breakout level we can plan a solid trade.

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#11 Guardforce AI Co., Ltd. (NASDAQ: GFAI) — The Post-Dilution AI Penny Stock Supernova

My eleventh AI stock pick is Guardforce AI Co., Ltd. (NASDAQ: GFAI).

There’s always the risk of a stock dilution when we’re trading. That’s the nature of sketchy penny stocks.

And we saw a perfect example from GFAI, but it’s still on my watchlist …

It’s hard to hate it when it’s given me a combined $2,267 (click the link for individual trades).

Yes, it’s a sketchy stock. Yes, there’s a risk that it dilutes again.

But the fact that I know that information helps me stay prepared. And some of these opportunities are too good to pass up.

I tell all my students, “Trade like you’re retired. Only come out of retirement when there’s a play that’s too good to miss.”

That mindset keeps us safe. And more than 30 of my students used that mindset to pass the $1 million milestone.

If you’re interested in trading, I can show you the process …

Here’s where all my millionaire students started.

GFAI has a great history of spiking.

And even with the stock dilutions, the float still contains only 1.7 million shares.

On July 20 and 21, the price spiked over 140%. It’s on a substantial dip right now.

Let’s see if another press release can push it toward the breakout level of $10.

#12 CXApp Inc. (NASDAQ: CXAI) — The Consolidating AI Penny Stock Supernova

My twelfth AI stock pick is CXApp Inc. (NASDAQ: CXAI).

In case you forgot, this is one of the most impressive runners from the AI sector.

In April the price spiked over 1,400% in less than three days.

And something big just happened you need to pay attention to …

When it comes to trading, you’ve heard me mention it already in this paper, support and resistance levels hold a lot of weight.

To those unaware of this concept, don’t worry.

I’ve got a video below that explains everything …

The chart for CXAI shows a major support level at $6.

And the price just triple-bottomed at that level …

Keep an eye out for higher prices soon.

#13 SoundHound AI, Inc. (NASDAQ: SOUN) — The AI Penny Stock Dip Buy

My thirteenth AI stock pick is SoundHound AI, Inc. (NASDAQ: SOUN).

SOUN was one of the first AI sector spikers.

On the final trading day of 2022, the price launched over 80%.

Between January and February, it spiked over 400%.

By now I’m sure you know what I’m about to say …

Past spikers can spike again!

Never ignore volatility from a former runner.

SOUN ran back to 2023 highs in June but couldn’t break through … yet.

Here’s where things get interesting … there’s an investigation underway that could show SOUN inflated the price of its stock. The company may have fibbed regarding its AI capabilities.

And if that sounds like a bearish catalyst, you’re on the right track.

But we’ve seen degenerate short sellers pile into stocks like this before … it puts them at high risk for a short squeeze.

If there are too many short sellers in one place they start to crowd each other out. And the following domino effect can lead to sky-high prices.

If you ask me, SOUN is a ticking time bomb that could go off at any minute.

2 Artificial Intelligence Stocks in India to Watch in 2023

I only trade stocks listed on U.S. exchanges. But here are a few artificial intelligence stocks that do business worldwide…

#14 Innodata Inc. (NASDAQ: INOD) — The AI Stock Grinder

My fourteenth AI stock pick is Innodata Inc. (NASDAQ: INOD).

INOD is a tech engineering company that operates worldwide. It offers solutions to data challenges that can come up when companies try to implement AI technology.

This stock ran in 2020 and 2021. But this year, it’s gone even higher.

Through August, it’s up more than 300%. It’s one of the few lower-priced AI stocks that has consistently held onto its gains.

I’ll be watching for a possible panic dip buy.

#15 Remark Holdings Inc. (NASDAQ: MARK) — The Reverse Split AI Penny Stock

My fifteenth AI stock pick is Remark Holdings Inc. (NASDAQ: MARK).

MARK is a U.S.-based company that does business worldwide. It develops AI-based tech products and solutions for businesses.

This stock has had a dismal 2023 — despite shrinking its float through a reverse split.

Reverse splits aren’t necessarily catalysts. But they are definitely a sign that a stock hasn’t been performing well.

This stock is still on my watchlist because it’s a former multiday runner. That’s something I always look for in the penny stocks I like to trade.

Top 2 Artificial Intelligence Stocks in Canada to Watch in 2023

#16 mCloud Technologies Corp. (NASDAQ: MCLD) — The AI-Assisted Wind Power Penny Stock

My sixteenth AI stock pick is mCloud Technologies Corp. (NASDAQ: MCLD).

AI and green energy are some of the biggest buzzwords out there right now.

The only problem with MCLD is that it’s a crappy penny stock continually in trouble with its host exchanges over its poor regulatory compliance.

The last few months have seen a flurry of warnings from both Nasdaq and its home exchange, the British Columbia Securities Commission, over not submitting proper financial documentation and not meeting minimum listing requirements. The only recent bright spot came when the company announced it was “exploring strategic alternatives to maximize shareholder value.”

That was the top of its May run that added nearly 200% to MCLD’s share price. It’s since given most of that back… but it’s shown that it still moves.

#17 BlackBerry Ltd. (NYSE: BB) — The AI Cybersecurity Stock on the Verge of a Buyout

My seventeenth AI stock pick is BlackBerry Ltd. (NYSE: BB).

Ever since BB got out of the smartphone business, it’s been a cybersecurity stock and an AI leader.

Its one bright spot in the last few years was when it was targeted by Reddit meme stock traders in 2021. The chat room hype caused the stock and many others to go supernova as part of giant short squeezes.

In 2023, it’s mostly flatlined … until it spiked nearly 20% at the end of August.

The spike had nothing to do with AI. Veritas Capital is rumored to be close to acquiring BB, which might make for some good short-term gains.

Why Should You Trade AI Stocks?

As a trader, you should always be prepared to take advantage of opportunities. As AI technology advances and new uses for AI are discovered, there could be plenty of trading opportunities in artificial intelligence penny stocks.

We’re already seeing a lot of it in self-driving cars. Who knows what future invention will change our lives?

But AI stocks are like any other sector. They can be hot or cold. And news can come and go.

Learn to take advantage of the hype, news, and volume in AI stocks. Build a watchlist first, then pay attention to the news and watch for your pattern or strategy.

Conclusion: Will You Watch Artificial Intelligence Stocks in 2023?

The AI revolution is off to a great start … But the technology’s just beginning to take off.

The unlimited potential of AI could have a huge impact on how we live in the future. And 2023 has shown how it can affect stocks.

Do you know how to prepare for a possible artificial intelligence penny stock run?

If you don’t, apply for my Trading Challenge today.

If you’re accepted you’ll get access to thousands of video lessons, all my educational DVDs, and weekly live trading and Q&A webinars. Plus, you’ll have access to all my archived webinars and my Challenge chat room.

Learn from my 20+ years of experience trading penny stocks and start becoming a self-sufficient trader today.

What do YOU think of these AI stocks to watch in 2023? Leave a comment and let me know!

Frequently Asked Questions About Artificial Intelligence Stocks

What Are Artificial Intelligence Stocks?

Artificial intelligence stocks are stocks of companies involved in the development of computer programs that perform tasks that would usually require human intelligence — think voice recognition, self-driving cars, etc.

What Is the Best Stock for Artificial Intelligence?

The best artificial intelligence stocks for trading are the ones that fit your style and strategy. If you like to invest in AI stocks, you might prefer large-cap stocks. If you want to trade artificial intelligence penny stocks, keep a watchlist to see what’s moving. Do your research! And if you need a trading mentor, apply for my Trading Challenge.

What Are the Best Artificial Intelligence Stocks for Self-Driving Cars?

All the major auto manufacturers are racing to develop artificial intelligence for self-driving cars. But they’ll likely partner with companies like Aptiv (NYSE: APTV) and Intel (NASDAQ: INTC), which are already developing automotive smart chips and sensors.

Are AI Stocks Good To Trade?

That depends on the stock, your strategy, and the news. AI technology is still in its infancy. Still, there’s a lot of potential in this sector. AI stocks are worth following and monitoring on your watchlist for potential trades.

How Do I Invest in Artificial Intelligence?

I don’t invest in stocks — I trade them. And trading AI stocks works the same as it does in other sectors: filtering down stocks, creating a watchlist, and having a trading plan ready for if and when they meet your personal trading criteria.