Indications of a bubble include high valuations, a plethora of speculation, rapid investment growth, and extreme positive market sentiment (hype) that leads to irrational investment behavior. Investing in AI stocks requires understanding the technical aspects of AI technologies and assessing the traditional financial metrics. It is important to keep up with the latest developments in the AI field, as the technology and market dynamics can change rapidly. Judging by Musk’s past business history, xAI likely won’t go public, at least not anytime soon.
X.AI Corp. (“xAI”) is not a publicly traded company, which means that you cannot invest in the company like you would in Tesla or Microsoft, for example. However, with xAI being founded by tech billionaire Elon Musk, there are other potential opportunities that you can explore to gain exposure to xAI. Shareholders can sell their xAI stock through EquityZen’s private company marketplace.
Can I buy xAI stock?
The second way is through an Express Deal on EquityZen, if eligible. An Express Deal allows you to sell your allocation of private shares in a given private company to another investor on EquityZen’s marketplace. More information on Express Deals can be found here and exit information can be found here. Since it is a newer company, there are very few financial metrics or even a track record for potential investors to base their decision upon. The stock is trading below its 52-week high and its all-time high set in 2021. The stock makes the best AI stocks list because of its strong yearly performance as well as analysts projecting strong EPS growth over the next five years.
xAI valuation
Recently, Elon Musk raised an additional $6 billion in funding, indicating that the company will likely remain privately held for the foreseeable future. Investors continue to monitor for any updates on a potential Initial Public Offering (IPO). These companies are noted for the significance of their advances, market position, and applications of AI technology in their fields. Their presence in the AI market is marked not only by their financial performance but also by how they have integrated AI for diverse industrial and business challenges. In finance and investment, AI algorithms can analyze market data at a speed and depth beyond human capability. Moreover, AI systems may be able to assess risks in investments and credit scoring with greater accuracy.
About xAI Stock
He first became a CoinCodex contributor in 2019, covering primarily crypto regulation and macroeconomics. Since then, Ted has expanded his interest to general crypto-related topics and is now a senior editor at CoinCodex. When he is not writing about crypto or traditional finance, Ted enjoys watching and playing basketball.
Collectively our team contributed some of the most widely used methods in the field, in particular the Adam optimizer, Batch Normalization, Layer Normalization, and the discovery of adversarial examples. We further introduced innovative techniques and analyses such as Transformer-XL, Autoformalization, the Memorizing Transformer, Batch Size Scaling, μTransfer, and SimCLR. We have worked on and led the development of some of the largest breakthroughs in the field including AlphaStar, AlphaCode, Inception, Minerva, GPT-3.5, and GPT-4. Invest in or calculate the value of your shares in xAI or other pre-IPO companies through EquityZen’s platform. In addition to trading and investing he’s widely published and coaches individual clients on the finer points of gaining an edge in the market. As with any sector, there’s no definitive way to choose which AI stocks you should invest in.
Analysts project 14.4% growth next year, which is below the 5-year average expected. Arista Networks provides products and software for data center and cloud computing. It creates networks that can grow and adapt with the evolution of technologies used on those networks. The company has an “A” financial health rating from Morningstar, and it is expected to grow EPS by 21.9% next year. Nvidia is known for its graphics cards, but the company also produces microchips for autonomous driving cars and AI applications. The company’s CEO, Ginseng Huang, is positioning Nvidia to be at the forefront of bringing AI to every industry.
The company has a B financial health rating and trades at a P/E of 41.3. The stock is still up over the last year but trades well below what are the major types of costs its 52-week high. The stock price has averaged returns of 27.5% over the last 10 years. The stock price is up over the last year, but the company hasn’t produced positive earnings yet. Despite the recent earnings dip, AMD stock has performed strongly over the last year and the last decade. It has a “B” financial health rating and a buyback yield of 0.4%.
Rather, there are personal preferences and portfolio needs that every investor should assess for themselves. C3.ai provides software that allows its users to roll out AI applications on a large scale. In fact, it is one of the few pure-play AI stocks involved in directly creating AI projects. Tesla is expanding its reach into AI, including its self-guided car technology. “The goal is not to be a car company,” controversial Tesla CEO Elon Musk once said, and the company’s choices certainly back that statement up.
- Although EPS fell in 2022, it is starting to recover, with analysts projecting strong growth over the next five years, including a 15.4% jump in 2024.
- That resulted in a 43.7% reduction in net income in fiscal Q3 2023.
- They collaborate with X Corp to bring these technologies to over 500 million users on the X app.
- At a share price of $165.58, Arista shares trade at 24.6x forward earnings and 10.7x sales.
- Analysts predict a move into profitability in 2024, with an EPS estimate of 48 cents per share.
- There are two ways to exit your private company investment on EquityZen’s marketplace.
There are several exchange-traded funds (ETFs) that offer exposure to a basket of stocks from companies involved in the development, research, and utilization of AI. The industry’s reliance on continuous technological advances and a changing regulatory landscape relating to data use and privacy add further complexity. As such, a strategic approach that balances enthusiasm for AI’s potential with a pragmatic assessment of risks and market realities is essential for investors navigating this exciting yet challenging domain. Since he left in 2018, Musk has been critical of the direction OpenAI has taken. A less direct way to gain exposure to xAI is to invest in AI-tracking exchange-traded funds (ETFs). AI appears to have a bright future ahead of itself, but nobody can know for sure how technology and business cycles will evolve in the months and years to come.
There’s currently no information about a potential X.AI Corp. stock symbol. It is easy to imagine that the company might use the ticker symbol “XAI” if it eventually gets listed on NYSE or NASDAQ. However, in November, Musk said that X Corp. shareholders will have a 25% stake in xAI, so the boundaries between the companies seemingly aren’t as straightforward. During the Twitter Space, Musk also touched upon the dangers of building an AGI system, which he has highlighted numerous times in recent years as a potentially existential threat to humanity. “The safest way is to build an AGI that is ‘maximum curious’ and ‘truth curious,’ and to try and minimize the error between what you think is true and what is actually true,” stated Musk.
That is a common reading for this stock, which has fluctuated around a P/E of 40 for the last couple of years. The average P/E for an S&P 500 stock is 28.1, and META has a P/E of 33.7 and forward P/E of 21.7. Given its strong growth prospects over the next couple years, the stock is still priced fairly despite already having had a strong run higher. Meta is the second best-performing AI stock over the last year. Although EPS fell in 2022, it is starting to recover, with analysts projecting strong growth over the next five years, including a 15.4% jump in 2024.
Investors should exercise caution, conduct thorough research, and consider long-term trends when investing in this sector. The company has not shared much detail about its intentions, but said on its website that its team would be joining a Twitter Spaces call on July 14 to take questions. (Musk is the owner of Twitter.) The AI company will work closely with Twitter, now called X Corp., and Tesla, as well as other companies “to make progress towards our mission,” xAI said on its website.
In July 2023, Musk held a Twitter Space in which he discussed xAI, its goals, and its team. Analysts at New Street Research estimated in February that the cost of delivering ChatGPT to Microsoft Bing users required an initial $4 billion infrastructure investment. That price tag will grow as the product is rolled out to more users, according to a report at CNBC. Elon Musk held a Twitter Spaces event in early July to reveal X.ai, his newest AI business. X.ai researchers will focus on science, while also building applications for enterprises and consumers.