5 Popular AI Stocks for February 2024

Among highly traded stocks with a focus on artificial intelligence (AI) for February 2024, mobile enterprise cloud platform provider Phunware Inc. ( PHUN ) tops our list. The firm recently announced that it would shift to powering its mobile engagement business through AI, contributing to a massive 30-day average daily trading volume of over 223 million shares.

A 2023 report by McKinsey & Co. estimated that generative AI’s impact on productivity could add up to $4.4 trillion in value to the global economy, with every sector and virtually every industry affected. Already, many companies are moving to take advantage of the potential of this technology. Here, we explore five stocks trading on either the New York Stock Exchange (NYSE) or the Nasdaq that have the highest average daily trading volume and that currently use AI in a substantive way. All data are as of Feb. 11, 2024.

• Average daily trading volume (30-day): 223.6 million
• Price: $0.34
• Market capitalization: $132.4 million
• Performance (1-year): -66.4%

Phunware offers an enterprise cloud platform for mobile and location-based SaaS products. It also provides blockchain services. In June 2023, Phunware announced that its mobile engagement solution would be powered by AI.

• Average daily trading volume (30-day): 109.9 million
• Price: $193.57
• Market capitalization: $616.5 billion
• Performance (1-year): -4.3%

Tesla manufactures electric vehicles, solar panels, car batteries, home power storage, and similar systems and products. The company utilizes AI in multiple ways, including through its self-driving software technology for use in its vehicles and the development of AI-powered bots for manufacturing and other purposes.

• Average daily trading volume (30-day): 85.2 million
• Price: $172.48
• Market capitalization: $278.7 billion
• Performance (1-year): 100.8%

AMD is a semiconductor manufacturer that designs and manufactures computer processors and other related products. As a leading chip maker, AMD’s products allow many other companies to utilize AI through data center, cloud, adaptive and embedded computing, and other offerings.

• Average daily trading volume (30-day): 59.1 million
• Price: $12.68
• Market capitalization: $50.8 billion
• Performance (1-year): -7.1%

Ford is an automotive company that designs and manufactures cars, trucks, sport utility vehicles, and related products. In March 2023, the company announced that it had established Latitude AI, a subsidiary dedicated to developing a hands-free, eyes-off-the-road automated driving system using AI technology.

• Average daily trading volume (30-day): 58.7 million
• Price: $8.13
• Market capitalization: $7.8 billion
• Performance (1-year): 20.3%

SoFi is a digital financial services company that provides tools to help members borrow, save, protect, spend, and invest their money. Its operations are centered around lending, traditional financial services, and a technology platform. SoFi has recently integrated AI technology into its personal finance app.

How We Selected Popular AI Stocks

Our screen for AI stocks focused on companies trading on either the NYSE or the Nasdaq with a minimum average daily trading volume of 1 million shares for the previous month. We then chose companies based on the highest average daily trading volume. To be sure these companies are tied to the AI technology space in a meaningful way, we included only those companies that have announced a major AI integration or new product launch in the last year or that provide hardware or other AI-related tools for other companies.

Notably, this is only one way to gauge whether a stock is focused on AI. Investors may wish to consider other metrics, including companies deriving a certain portion of revenues from AI-related business or those included in AI-focused indices or exchange-traded funds.

For investors looking to target AI stocks as a group in order to capitalize on the larger trend, AI-focused ETFs are a popular option. Still, it’s worth noting whether companies included in one of these funds are developing AI technology, putting it into practice in their existing business models, or are likely to benefit from the large-scale movement toward AI reliance across sectors. Some investors may even wish to make use of AI in the investment process itself through robo-advisors or other trading platforms .

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As of the date this article was written, the author does not own any of the above stocks.