AI stocks: How to profit from artificial intelligence stocks in 2026?

Hardly any other topic has attracted more attention in recent years than artificial intelligence. Both on the stock markets and in people's private lives, the new technologies are having a huge changes. It is clear that investors and traders also want to profit from this hype!

But which shares, ETFs and co. are most worthwhile? And how do you get into a sector that already seems massively overvalued? We have summarized the most important answers for you. 

Hype about AI shares: what's behind it all

Artificial intelligencecomputers that are able to solve problems and tasks with human-like logic, are currently the most most important trend topic. The seemingly limitless potential of these technologies fascinates private individuals and arouses great interest among companies. 

Back in 2016, Google announced that the company was switching from the principle of "mobile first" to "AI first". Even back then, experts recognized the enormous signal effect and the expected Hype around artificial intelligence stocks. The topic reached the general public with the publication of ChatGPT in November 2022 at the latest. 

The large language model, which can write simple texts and hold conversations, has been marketed as "artificial intelligence". Even if this term is not strictly speaking accurate (it is not intelligence in the true sense of the word, but text generation on a probability basis), it has long since become established. 

The programs from the various providers are extremely popular today and are increasingly replacing search queries on Google and other search engines, for example. Countless new functions have been added since then: AI tools can now compose music (and play it in real time), design images or create videos with real-looking people.

Companies, developers and scientists, on the other hand, benefit above all from the programs' ability to evaluate large amounts of data in seconds and recognize correlations. You can Automate and optimize processesThis can lead to improved productivity, higher output and lower costs. The areas of marketing, security, maintenance (predictive service), product development and enhancement, supply chain, HR and customer service in particular benefit greatly. 

Artificial intelligence has already found its way into a wide variety of software applications. Various apps on our smartphones, the autopilot in our cars or the heating system in our homes are already using the programs with great success. 

The Market with artificial intelligence is growing rapidly: The Annual profits in the industry is expected to reach almost USD 100 billion by 2024. The Growth corresponds to 36.6 percent per year. 

Functionality

Artificial intelligence is a somewhat misleading term in the context of current technological developments. Strictly speaking, it refers to the ability of a system to replicate the processes of understanding, problem solving, abstraction, etc. of the human brain. 

However, these human thought patterns are not present in the programs - in some cases, they are not even the goal. Instead, the aim is usually to solve a single, limited task, which is later combined to form a broader field of activity. This is mainly achieved by "machine learning"a sub-discipline of the AI field.

Large amounts of data are processed and presented to the programs. This data enables the software to learn to perform simple tasks. The more data records are available, the more reliable and better this process is successful until a certain level of abstraction is finally possible. 

For example, a neural network (a particularly powerful software model based on the brain cells of animals) could be taught to recognize human hands in images. First, the program is presented with thousands of images in which hands have already been correctly marked. 

In the second step, the AI is asked to independently mark hands in new, unknown images. The results are checked (either by humans or another AI) and feedback is provided. By repeating the process with more and more images, the accuracy of the results improves steadily. 

If the software has been trained with enough data sets, it can also understand less clear representations. For example, it can then recognize hands in abstract works of art or in nature. It would then also be possible to differentiate between "real hands" and animations or other, more advanced tasks. 

Restrictions and problems

Artificial intelligence has enormous potential and could dramatically change almost every area of life - a fact that is reflected in the prices of AI shares, among other things! The However, practical application is usually much more difficult.

Companies are already benefiting from procedural improvements. The programs can above all speed up repetitive processes enormouslydetect errors or improve work processes through automated suggestions. However, the feared wave of redundancies has yet to materialize. 

This is also due to the considerable problemsthat AI solutions are subject to. They are considered prone to errors and can, due to the learning effect, also adopt wrong behavior and thus lose quality. Human monitoring is therefore still considered necessary. 

Users of ChatGPT or the in-house AI from Google or Facebook are familiar with this problem: the applications still deliver Frequently wrong answerswhich have caused considerable damage to gullible users in the past. 

Around a quarter of all respondents from the business world stated in a survey stated that their company had already suffered from the negative consequences of using AI. The most frequently mentioned problems are Inaccuracies, security problems, the inability to explain the results and the infringement of intellectual property. 

Generative programs that create texts, images or music also suffer from a Lack of data records. To teach ChatGPT and similar applications, for example, all known texts from the Internet have already been used. An "additional Internet" is not available, so that the training comes to a standstill.   

The only remaining input today therefore comes from other AIs. Text generators learn from the texts of other text generators, image generators learn from the images of other image generators and so on. As a result, errors and problems become ingrained and the overall quality decreases. In this context, experts speak of a "Habsburg AI". 

Hardly any expert would deny the huge potential of the programs; however, the current economic benefits are limited. In combination with the dramatic rise in AI shares, calls are being made that this is a New dotcom bubble. Similar to the internet stocks of the early 2000s Securities that are only remotely related to AI are dramatically overvalued today. 

It should be noted that many of the most important market players - such as Microsoft, Google and Nvidia - are able to operate without artificial intelligence at all. have lucrative business models and operate profitably. A big difference to the dotcom shares, which often had neither profits nor turnover. Nevertheless, a certain risk that some AI shares could be dramatically overvalued. 

The most important AI shares

Participating in the lucrative field of artificial intelligence is an obvious choice - after all, considerable growth rates await investors. Probably the simplest opportunity is offered by AI shares. The securities of companies that are active in this field, promise attractive profits. 

There are roughly three fields of activity: Companies can Provide the hardware needed for the AI boom (Example: Nvidia), Offer AI software (Example: ChatGPT from OpenAI) or benefit greatly from the use of AI (Example: Adobe graphics programs use AI very successfully, Netflix's recommendation algorithm ...). All three categories are potentially extremely profitable and can make for a worthwhile investment. 

In the following some of the most important AI stocks. Please note that this is not an investment recommendation! We neither recommend nor advise against the purchase of specific securities.

First of all, it is worth taking a look at the most important AI shares by market capitalization: 

MICROSOFT

• Company: Micron Technology, Inc
• Symbol (TWS): MSFT
• ISIN: US5949181045
• Stock exchange: Nasdaq
• Country: USA
• Currency: USD
• Market capitalization: USD 3,000 billion
• Turnover (TTM) in USD: 211 billion.

Microsoft As a global technology company and one of the most valuable companies in the world, the US company hardly needs a separate introduction. In addition to its extensive range of software products, the US company has also developed invested heavily in artificial intelligence and has become one of the leading AI stocks. 

This is reflected, among other things, in the Partnership with OpenAIthe operator of the ChatGPT application. The text generator is now used in many Microsoft products, such as the Bing search engine. In the professional sector, AI is used to enable customers to create their own AI tools or for automated documentation, for example in the healthcare sector. 

In 2023, Microsoft was able to increase its sales by 6.88 percent to 211 billion US dollars. At the same time, however, profits fell by 0.5% and amounted to 72 billion US dollars. Nevertheless, most analysts see no danger: opinion is predominantly very positive and further gains are expected despite the already very high valuation.

In contrast to some other AI shares Microsoft is by no means dependent on AI. It has a solid financial basis and an extremely broad user base that even generates regular revenue through offerings such as Microsoft 365. This fact, combined with its enormous size, makes the company a comparatively safe choice for an investment. 

NVIDIA

• Company: NVIDIA Corporation
• Symbol (TWS): NVDA
• ISIN: US67066G1040
• Stock exchange: Nasdaq
• Country: USA
• Currency: USD
• Market capitalization: USD 2,696 billion
• Turnover (TTM) in USD: 62 billion

Nvidia is the leading chip manufacturer and thus a driving force behind the AI boom. These high-performance semiconductors can now be found in almost all high-end computers, games consoles and more. In addition to artificial intelligence, the enormous computing power is also required for mining cryptocurrencies and data processing applications.

Although the company is focusing on the AI trend more than almost any other, there remains a broad customer base and lucrative product range. This strategy has increased the company's profits to around 30 billion US dollars in 2023. A Gain of an incredible 581 percent compared to the previous year!

This is also reflected in the courses: In the last five years, the price of securities has risen more than 30-fold! (from around EUR 33 in 2019 to over EUR 1,130 at the time of the constitution)

Many investors invested in the attractive AI share in good time and have already made considerable profits. Many analysts are predicting further growth. They hardly see the very high valuation as a warning signal: thanks to the healthy business model and excellent market position, further gains seem more than likely. 

However, future development is closely linked to the success of AI in general. If, for example, new laws prohibit the theft of intellectual property when training programs or the quality of generative AIs stagnates, the future development of AI is closely linked to the success of AI in general. Price slumps are also possible. 

IBM

• Company: International Business Machines Corporation
• Symbol (TWS): IBM
• ISIN: US4592001014
• Stock Exchange: New York Stock Exchange
• Country: USA
• Currency: USD
• Market capitalization: USD 151 billion
• Turnover (TTM) in USD: 60.59 billion

IBM was long regarded as one of the most important technology companies, but fell further and further behind year after year. In 2023, however, profits increased again by a whopping 357 percent to 7.5 billion US dollars - including through its activities in the AI sector. 

The corporate strategy primarily comprises Cloud applications and data processing and thus two areas, that particularly benefit from artificial intelligence. The focus is also on AI in healthcare and finance. Among AI stocks, IBM is therefore more focused on business customers 

The company is also heavily involved in research into the future technology of quantum computers. Analysts see the Very positive opportunities for the company. In particular, the good position within the AI field is arousing interest. However, this expectation has hardly been reflected in the share prices to date. 

DOCUSIGN

• Company: DocuSign, Inc
• Symbol (TWS): DOCU
• ISIN: US2561631068
• Stock exchange: Nasdaq
• Country: USA
• Currency: USD
• Market capitalization: USD 11 billion
• Turnover (TTM) in USD: 2.76 billion

With DocuSign, we are presenting an AI company with a very focused product range: The core business is digital signatureswhich greatly simplifies the handling of documents. The AI-supported analysis of contractsto detect risks and unfavorable wording has also been included since the acquisition of "Seal Software" in 2020. This enables legal professionals to analyze or create relevant documents much faster and better.

The concept seems to be working: in 2023, the company was profitable for the first time in years and generated a profit of around 32 million US dollars. However, share prices remained largely unimpressed by this and have been bobbing around at just under 50 US dollars for around two years. 

One of the reasons could be the Strong competition from Adobe or Dropbox be. It is unclear whether DocuSign will be able to assert itself here. This AI share therefore represents a rather greater risk. This is also reflected in the opinion of the majority of analysts. 

C3.AI

• Company: C3 Ai Inc
• Symbol (TWS): AI
• ISIN: US12468P1049
• Stock exchange: NYSE
• Country: USA
• Currency: USD
• Market capitalization: USD 3.6 billion
• Turnover (TTM) in USD: 0.27 billion

Unlike the technology giants mentioned so far, C3.ai is a company that specialized exclusively in artificial intelligence has. The offer includes the Development and implementation of AI solutions for customers. Possible fields of application include software development (the AI programs can speed up the development process) or predictive service (the US Air Force uses C3 to accurately predict aircraft maintenance requirements). 

To date, this field of end-to-end AI development has not been seriously served by any other provider, meaning that C3 has a Very good market position has. Unfortunately, this position has not yet translated into profits: In In 2023, the company lost 268 million US dollars; an increase of 40 percent on the previous year. The prices of AI shares are also barely moving.

Entering AI shares despite high prices?

Many of the companies in the artificial intelligence sector achieve very high prices on the stock market. Despite the industry's good future prospects, many investors are finding it difficult to strike - the The risk of buying an overvalued share is very high. In the worst case scenario, prices could correct immediately after the purchase and fall sharply. 

But it is definitely possible to invest profitably in such expensive companies! It is a popular method, Cash Secured Put Options to be used. Trade options is generally regarded as a risky but also lucrative form of trading. With a cash-secured put, however, the risk is rather low - provided it is executed correctly. 

The procedure is simple: you sell a put option on one of the AI shares (or other securities) that you would like to purchase. This means that you undertake to buy 100 securities at the agreed price if the other party so wishes. The Purchase price below the current price, at your personal desired price for the share. 

If the price actually falls to this value or even lower, the counterparty will demand exercise. You must Buy 100 KI shares at this price and have them in your portfolio. The highlight: As an option seller ("writer") you will receive a bonuswhich you may keep in any case!

If, on the other hand, the price remains stable or even increases, the other party will not demand implementation. The Option expires worthless and you will not receive any shares, may, however, also keep the premium and book it as a profit. This process can be repeated as often as required - until the option is exercised and the purchase is completed. 

So there are two scenarios: 

1. The option is exercised. They receive the shares at their desired price and can book the premium as a profit. 
2. The option is not exercised. You do not receive any shares, but you can book the premium as a profit and repeat the process. 

The disadvantages of this strategy are, on the one hand high capital outlay, as an option always comprises 100 securities. Depending on the price, considerable sums are therefore required. You should spend this money hold in cashin order to be able to complete the purchase in the event of exercise (hence the name "cash secured put" - a put option that is secured by cash). 

There is another disadvantage, when a company's share price collapses. In the highly competitive field of AI shares, this is not uncommon! The counterparty will demand the exercise of the option and you acquire securities at a high price - depending on how low the fall was, you can make a very bad deal!

You should therefore use Cash Secured Puts only invest in securities whose long-term future prospects you are convinced of. If it is a quality company with an attractive product range and a good market position, a temporary setback is not a problem. 

An additional problem can be the Access to the options market form. Only a very small number of brokers such as CapTraderwhich are also suitable for professional investors and traders, have options in the product range. 

If, on the other hand, you expect that some AI shares will not survive in a highly competitive market, you can also benefit from their price losses. The simplest variant is the use of a Empty sales. One such position that high-quality brokers offer you, increases in value when the share price falls. 

If the bet works and the price of the company falls, you can make attractive profits. Of course, there is also the usual risk of failure!

A third option for low-cost purchasing is the Share savings plan represents. This is an automated purchase that is executed at regular intervals and for a fixed amount. For example, you could buy an attractive share in the field of artificial intelligence for 500 euros on the first of every month. 

Due to the recurring purchases, you sometimes catch a very favorable price and then receive more shares for the amount of 500 euros. In other months, the prices are quite high and you buy fewer shares. Overall, this results in A very good average price in the long term (cost average effect), which can significantly outperform a one-time purchase! 

The biggest disadvantage, however, is the comparatively long periodYou only receive the shares bit by bit. If you expect the share price to rise quickly in the near future, you could miss out on at least part of it by using a savings plan. 

Conclusion: AI shares promise further gains

Artificial intelligence has shaken up our private lives and the economy in recent years. The programs are "trained" using large amounts of data and can then solve tasks independently. The creation of texts, images, videos, music, etc. using AI is particularly popular. 

In the business environment, the possibilities for forecasting, data processing/analysis and customer communication are particularly important. Companies that take advantage of the current AI trend or supply the necessary hardware have recently been able to make strong gains for the most part. The majority of analysts and experts expect this price rally to continue. 

Buying AI shares, i.e. companies that benefit directly or indirectly from artificial intelligence, is particularly obvious. There are a wide variety of stocks available: Companies such as Nvidia, which are playing a key role in shaping the trend, appear to be particularly worthwhile. 

But the Price is already quite high for many titles and scares off investors. In some cases, it is even assumed that a bubble is forming and that artificial intelligence will not be able to fulfill the expectations placed in it (at least in the short term). Buying AI shares is therefore not a risk-free investment! 

It is also a highly competitive market in which individual companies could quickly fall behind. If you want to invest in seemingly overvalued securities, there are various "tricks" available: for example, you can through Cash Secured Puts wait for the shares to reach your desired price. You will even be rewarded financially for the waiting time!

Alternative a savings plan can help you buy AI shares at a lower price. However, you will need to allow more time for this, as purchases are only made piecemeal. Speculating on falling prices through a Short sale is possible.