Top AI Stocks in Hong Kong and the US to Watch in 2024
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Artificial intelligence (AI) has become more than just a buzzword and stuff of fictions—it has become a transformative force that reshapes and revolutionises industries, jobs, and our daily lives. However, its transformative force is not confined to just giving rise to new and innovative technologies; it is permeating into the stock market, driving tremendous growth in AI stocks.
As AI technology continues to advance at an even accelerated pace in 2024, AI stocks are witnessing a surge in growth that captures the attention of savvy investors worldwide.
What are AI Stocks?
AI stocks are shares belonging to companies that operate within the AI space. Since there are many applications for AI, there is a large variety of stocks; such as Machine Learning, Natural Language Processing (NLP), Computer Vision.
Additionally, AI stocks can be broadly categorised into five key areas, each playing a crucial role in the AI ecosystem.
Chipmakers
Develop the advanced semiconductors and processors that power AI technologies, enabling faster and more efficient computations.
Cloud and data centre infrastructure providers
Offer the essential platforms and services that store, manage, and process vast amounts of data required for AI operations.
AI software and platforms
Encompass the algorithms, applications, and tools that drive AI innovations, powering everything from machine learning to deep learning.
AI hardware
Focuses on the physical devices and equipment, such as robots and autonomous machines, that utilise AI to perform tasks and make decisions in real-time.
Top AI Stocks in Hong Kong
As the global race for artificial intelligence (AI) supremacy intensifies, Hong Kong emerges as a pivotal player, housing some of the most promising AI companies on the market.
These top AI stocks in Hong Kong are not just riding the wave of technological advancement—they are at the forefront of innovation, driving significant changes across industries.
With the city's strategic position as a financial hub and its deep ties to the rapidly growing tech sectors of Asia, investing in Hong Kong's AI stocks offers a unique opportunity to tap into the future of technology.
| Company | Symbol | AI Advancement |
|---|---|---|
| SenseTime Group Inc. | 0020.HK | SenseTime is a major player in the AI landscape, with its focus on generative AI, traditional AI, and smart auto technologies. In 2024, SenseTime's generative AI business has seen significant growth, especially with the launch of the SenseNova large model system, which includes various AI applications like "SenseChat," "Seconds Painting," and video creation platform "Shadow." These developments are part of its broader strategy to provide Model-as-a-Service (MaaS) to industry partners |
| Alibaba Group Holding Limited | 9988.HK | Besides Alibaba Cloud's AI and Data Intelligence solutions that enhance business operations across various industries, Alibaba is also advancing AI development with its Qwen2-Math large language models. These models are specifically designed for solving complex mathematical problems and have demonstrated superior performance compared to leading US-developed AI models. |
| Xiaomi Corporation | 1810.HK | Xiaomi is significantly investng into AI by committing 20 billion yuan annually to integrate AI into smartphones, automobiles, smart devices, and robots. This includes developing on-device generative AI technologies, such as a localized AI large language model for their XiaoAi voice assistant, which prioritizes user privacy. Xiaomi also plans to invest up to 100 billion yuan over the next five years in AI, robotics, and autonomous driving. |
| Tencent Holdings Limited | 0700.HK | Tencent is pivoting toward AI amidst challenges in its gaming sector, which has seen declining revenues. The company, already active in AI through products like WeChat AI and Tencent Cloud AI, has launched Hunyuan, a large language model intended to rival ChatGPT. Hunyuan has quickly gained popularity in China, demonstrating strong performance in tasks like text summarization and sentiment analysis. |
| Meituan | 3690.HK | Meituan recently acquired Light Year, an AI company founded by its retired co-founder Wang Huiwen, for about $285 million. Light Year, established in 2023, was developing its own Large Language Model (LLM) to compete in China's growing generative AI landscape. This acquisition strengthens Meituan's position in AI, especially in generative AI. |
| JD.com, Inc. | 9618.HK | JD.com has launched an enhanced version of its Spring Dawn Initiative, aimed at supporting third-party merchants with AI-driven tools to reduce operational costs by up to 50%. The initiative includes a Store Launch AI Assistant, AI-driven content creation, and a digital presenter live streaming service, which automates the creation and broadcasting of product presentations. Additionally, JD.com’s AI customer service and business intelligence tools improve efficiency and sales conversion rates. |
Top US AI Concept Stocks
As AI continues to revolutionise everything from healthcare to finance, the leading AI stocks in the U.S. are poised to deliver substantial returns, making now the perfect time to explore these high-potential opportunities.
| Company | Ticker | AI Advancement |
|---|---|---|
| NVIDIA Corp | NVDA | Nvidia dominates the AI hardware market with over 90% market share in data-center GPUs and 80% in AI processors. Its proprietary CUDA software stack is a significant competitive advantage, allowing developers to accelerate machine learning workloads. Nvidia continues to innovate with the upcoming Blackwell platform and H200 GPU. |
| Advanced Micro Devices | AMD | AMD is leveraging its open-source ROCm framework to challenge Nvidia's CUDA dominance. AMD's AI advancements include the MI300X GPUs and upcoming MI350 series, focusing on increasing core counts and improving AI processing capabilities. |
| Intel Corp | INTC | Intel is focusing on AI chips with its Xeon 6 processors and Gaudi AI accelerators, offering cost-effective alternatives to Nvidia's GPUs. Intel is also investing in its foundry services and aiming to regain market leadership with its 18A process technology by 2025. |
| Amazon | AMZN | Amazon is investing heavily in generative AI, aiming to build on its leadership in cloud services through its Amazon Web Services (AWS) division. Despite facing competition from Microsoft's Azure, Amazon announced plans to invest over $100 billion in data centers by 2034 to support its AI strategy. AWS offers custom AI training and inference chips, enabling developers and companies to build secure AI applications. Amazon is betting on these advancements to drive future growth, though challenges remain in catching up to Azure's rapid expansion in AI services. |
| Tesla | TSLA | Tesla is making significant advancements in AI, particularly with the construction of an AI supercluster that could become one of the world's largest data centers, utilizing both Tesla's AI hardware and third-party chips from Nvidia. This facility is crucial for developing Tesla's ambitious full self-driving (FSD) technology and humanoid robotics, both of which require immense computing power. |
| Microsoft | MSFT | Microsoft is integrating AI across its software products with Copilot, an AI assistant that enhances productivity in tools like Word and Excel. Additionally, Microsoft's Azure cloud services, which include AI and machine learning tools, are driving significant growth. |
| Apple | AAPL | Apple's AI strategy centers on embedding AI into its devices through Apple Intelligence, offering advanced features like content creation and task automation, while ensuring strong data privacy. |
| GOOG | Google focuses on AI-powered services like the Gemini assistant and AI-integrated search features. It also competes in AI hardware with its Tensor Processing Units (TPUs) for cloud customers. | |
| Meta | META | Meta Platforms has seen significant growth driven by its AI investments, particularly in improving ad targeting and enhancing user engagement across its social media platforms. The company is heavily investing in AI infrastructure, including its Meta Training and Inference Accelerator (MTIA) and the acquisition of Nvidia GPUs. |
| Super Micro Computer | SMCI | Super Micro Computer, Inc. (SMCI) is strategically positioned in the AI and cloud computing markets as a leading provider of high-performance server technology. The company's innovative infrastructure solutions enable businesses to leverage AI algorithms and cloud services effectively. With a diverse global customer base, SMCI demonstrates strong financial performance and growth potential. The company's commitment to innovation and sustainability further enhances its appeal to investors. |
Top AI ETFs
| Symbol | ETF Name | Total Assets ($MM) | Top 10 Holdings |
|---|---|---|---|
| IYW | iShares U.S. Technology ETF | $16,864 M | AAPL, MSFT, NVDA, META, AVGO, GOOGLE, ADBE, CRM, AMD, GOOG |
| FTEC | Fidelity MSCI Information Technology Index ETF | $10,415.3 M | AAPL, MSFT, NVDA, AVGO, CRM, ADBE, AMD, ORCL, ACN, CSCO |
| FDN | First Trust Dow Jones Internet Index Fund | $5,181.7 M | META, AMZN, NFLX, CRM, ANET, GOOGL, CSCO, PYPL, GOOG, BKNG |
| IXN | iShares Global Tech ETF | $4,519.6 M | MSFT, NVDA, AAPL, 2330, AVGO, ASML, 005930, CRM, ADBE, AMDtmr |
| IGM | iShares Expanded Tech Sector ETF | $4,517.8 M | META, AAPL, MSFT, NVDA, GOOGL, AVGO, GOOG, NFLX, CRM, ADBE |
| XT | iShares Exponential Technologies ETF | $3,164.0 M | NVDA, PLTR, ALNY, TOST, AVGO, ANET, 2330, FSLR, 836, ISRG |
| BOTZ | Global X Robotics & Artificial Intelligence ETF | $2,431.6 M | NVDA, ISRG, ABBN, 6861, 6273, DT, 6954, 6506, 6645, CGNX |
| AIQ | Global X Artificial Intelligence & Technology ETF | $1,941.2 M | BABA, NOW, IBM, META, 700, CSCO, ACN, NFLX, ADBE, CRM |
| KOMP | SPDR S&P Kensho New Economies Composite ETF | $1,826.2 M | OII, TDY, PSN, LMT, LDOS, BRKR, KTOS, UPST, AVAV, COIN |
| ROBO | ROBO Global Robotics & Automation Index ETF | $1,087.8 M | ISRG, NOVT, 6324, NOW, 6954, ZBRA, KARN, ILMN, ROK, OMCL |
AI Stocks Future and Prospects
The excitement around AI technology doesn’t seem like it will go away anytime soon. In fact, many experts from the technology space have said this is only just the beginning. Key factors contributing to the positive outlook include:
Continued Technological Advancements
Breakthroughs in machine learning, natural language processing, and automation are expected to drive innovation, making AI more capable and accessible. This continuous improvement will fuel demand for AI solutions, benefiting companies involved in AI development and deployment.
Growing Market Demand
Businesses across the globe are increasingly integrating AI to enhance efficiency, reduce costs, and gain a competitive edge. This surge in AI adoption is likely to boost the revenues of companies specialising in AI technologies, leading to strong stock performance.
Government and Corporate Investment
Significant investments from governments and large corporations in AI research and development are expected to accelerate progress. Public and private sector funding will likely contribute to the growth of AI companies.
Expanding AI Applications
AI is set to revolutionise various industries, from autonomous vehicles to personalised medicine and smart cities. As these applications mature and become more widespread, companies leading in these areas could see substantial stock price appreciation.
Global AI Competition
The race for AI leadership is intensifying, with countries like the U.S., China, and the European Union heavily investing in AI. This global competition is driving innovation, creating lucrative opportunities for investors in AI stocks.
How to Invest in AI Stocks
Investing in AI can be approached in various ways, each with its own set of advantages. One method is to directly invest in companies at the forefront of AI development, such as those creating AI technologies or applying them across industries. Another approach is to invest in AI-focused ETFs or mutual funds, which offer diversified exposure to AI-related companies.
StashAway is a digital wealth management platform that offers personalized investment portfolios tailored to your financial goals and risk tolerance. The platform uses data-driven algorithms to build and manage diversified portfolios across various asset classes, including equities, bonds, and commodities.
When investing in AI through StashAway, you can choose:
- StashAway’s Thematics Portfolios: Its Technology Enabler portfolio invests in new core technologies such as Artificial Intelligence, Blockchain, Semiconductor and Robotics. The portfolio is professionally managed by StashAway’s investment team and their proprietary asset allocation framework, ERAA@®.
- StashAway’s Flexible Portfolios: You can customize your own AI investment strategy with a wide variety of global ETFs that invest in or are related to AI development. You can also add and remove assets you believe in, and change them any time.
These options provide targeted exposure to different aspects of the AI and tech industries, allowing investors to align their portfolios with specific growth areas.
Investing in AI Stocks for 2024 and Beyond
The burgeoning field of artificial intelligence presents a wealth of investment opportunities that savvy investors should not overlook. As AI technology continues to advance and reshape industries across the globe, investing in AI stocks not only allows you to participate in this transformative wave but also positions you to potentially reap significant rewards as AI becomes increasingly integral to our daily lives and businesses.
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