Artificial Intelligence (AI) used to be the domain of Hollywood and sci-fi fans. But this year, AI has captured the wider public’s imagination. Much of the attention is thanks to ChatGPT, which now ranks as the product with the fastest adoption rate in history, reaching 100m* monthly active users in two months. By contrast, it took nine months for TikTok to reach 100m monthly users. Perhaps not surprisingly, AI is also the latest investment craze, with many analysts calling for a re-run of the “roaring 1920s” amid a wave of technological innovation.
We’re just beginning to scratch the surface of AI’s potential, which has naturally excited the market. Fortunately, a number of leveraged single-stock ETFs offered by GraniteShares give investors the opportunity to play the AI theme (and other mega-tech trends) via the companies who seem poised to reap the greatest benefits.
Take Nvidia, the poster child for AI-mania on the stock market. Nvidia is a leading maker of GPUs used to make video games, and its chips currently power much of the AI revolution. Much of the fuss around NVIDIA has arguably been driven by the discovery that Open AI’s Chat GPT runs on NVIDIA hardware. The stock is up 188.% as of July 10. For those seeking magnified returns, there is now a way to invest in NVIDA with GraniteShares 1.5X Long NVDA Daily ETF (NVDL) . NVDL provides 1.5X the daily return of Nvidia stock and has become a popular way for conviction investors to play the AI theme.
META is also a stock benefiting from the AI trend, rising by 141% year-to-date. The company’s vision for the Metaverse powered by AI adds a whole new dimension to the stock. GraniteShares 1.5X Long META Daily ETF (FBL) is a way for investors to get leveraged exposure to Meta in the convenient form of an ETF.
Cryptocurrencies remain a very popular mega trend in tech, and have been regaining interest as an alternative to the U.S. dollar and U.S. banking system in a post-Silicon Valley Bank world. And with the collapse of FTX, TerraUSD/Luna, and Three Arrows, Coinbase has emerged as a credible alternative and default proxy for crypto for those not comfortable with investing in crypto directly. The crypto exchange is looking at using AI for customer service and evaluating how it could affect all parts of its business, according to recent comments made by CFO Alesia Haas. A conviction way to invest in Coinbase is via GraniteShares 1.5x Long COIN Daily ETF (CONL)
China Tech is also a huge mega-trend and will undoubtedly rival the U.S. in an AI arms race. Who will be the winners? Alibaba is one of the marquee tech companies in China and is also rolling out its AI tech. GraniteShares 1.75x Long BABA Daily ETF (BABX) is a way to play BABA, as well as the China Tech and AI stories.
It’s hard to mention AI without mentioning Tesla. Tesla has repeatedly talked up its AI credentials over the last few years. Meanwhile, Elon Musk has run a Tesla AI day outlining his vision for an AI and robotics company, not just a car manufacturer. GraniteShares 1.25x Long TSLA Daily ETF (TSL) is a leveraged ETF providing 1.25X leverage to the daily price of Tesla stock.
And finally, there’s Apple. Apple not only led the mobile internet revolution of the last decade, the company has been one of its the biggest beneficiaries by providing the devices and ecosystem to support it. Tim Cook said the company would “weave” AI into its products and be “deliberate and thoughtful” in how it did so. GraniteShares 1.75x Long AAPL Daily ETF (AAPB) can be used as a leveraged play on the giant tech company from Cupertino.
*Source: Reuters
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