The best ASX AI stock to invest $1,000 in right now

I think this ETF offers great exposure to AI stocks…

| More on:
Man looking at digital holograms of graphs, charts, and data.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Artificial intelligence (AI) had roared back into the headlines of the investing world this week. As a result, Australian investors might be on the hunt for ASX AI stocks to invest in.

The revelation earlier in the week that the Chinese AI program DeepSeek had been developed at a relatively low cost upended global markets. This, in turn, resulted in some dramatic share price movements.

Once again, the potential of this technology to change the world has been on full display.

Investing in AI remains difficult, though. As this technology is still very much in its infancy, it can be hard to know which companies will be the long-term winners of the AI revolution, and which might go the way of Netscape Navigator.

That's why I think the best ASX AI stock to invest $1,000 in right now is actually an exchange-traded fund (ETF).

A top ASX AI stock to buy with $1,000

The Global X Artificial Intelligence ETF (ASX: GXAI) was only launched in April of last year. It offers investors access to a portfolio of global companies that potentially stand to benefit from the adoption of AI technology. As well as companies that make the chips and infrastructure that underpin it.

If you wish to invest in ASX AI stocks but don't know where to start, this company is a great choice, in my view. It offers exposure to a wide variety of companies in this endeavour. These range from Tesla, Qualcomm and Netflix to Oracle, Alibaba and NVIDIA. There are currently a total of 84 stocks in this ETF's portfolio. All have at least some form of exposure to AI.

This ETF isn't going to capture the full returns of the AI revolution's biggest winners. But I think it's a great way of harnessing at least some of the upside that AI is poised to bring to investors. Particularly for those who might not have a deep understanding of how AI technology operates.

As such, I think anyone wishing to inject some AI exposure into their ASX stock portfolios would do well to take a look at this ETF.

The Global X Artificial Intelligence ETF charges a management fee of 0.57% per annum. Since its inception last year, this ASX AI stock has delivered a performance of 21.9% (as of 31 December). Over the past five years, the index that this ETF tracks has returned an average of 20.7% per annum.

Motley Fool contributor Sebastian Bowen has positions in Tesla and Netflix. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix, Nvidia, Oracle, Qualcomm, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Netflix and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Technology Shares

Which ASX 200 technology stock will pay the best dividend yield in 2025?

Earnings season is underway and dividend announcements are on investors' minds.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX 200 technology stocks led the market with a 1.99% rise while the benchmark index slipped 0.24%.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

2 ASX tech stocks to buy during an anticipated 15% to 20% sector pullback in 2025

Expert reveals 2 of his favourite tech stocks and at what prices we should buy them during a dip.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Technology Shares

Life360 shares: A generational opportunity to get rich?

I think the Life360 share price could more than double again in the year ahead.

Read more »

a woman sitting at a desk checks an old fashioned calendar resting against her wall as she sits with documents in front of her.
Technology Shares

Own WiseTech shares? You need to know about these dates in 2025

Put these dates in your calendar.

Read more »

a young child wearing a cardigan and thick black glasses places his hand on a nearly rounded object and his hair lifts at right angles to his head thanks to static electricity.
Technology Shares

Up 223% in a year, why this ASX 200 tech stock could keep surging higher in 2025

A leading expert expects the ASX 200 tech company to provide strong 2025 earnings guidance.

Read more »

Man with rocket wings which have flames coming out of them.
Technology Shares

Pro Medicus shares jump to record high on big news

This high-flying stock keeps breaking records. Here's what is happening today.

Read more »

man thinking about whether to invest in bitcoin
Technology Shares

Should you buy WiseTech shares before earnings season?

Is this tech star a buy? Let's see what analysts are saying about it.

Read more »