Top AI stocks to watch in Singapore

What are AI stocks?

Artificial Intelligence (AI) stocks represent shares of companies at the forefront of developing, implementing, or leveraging advanced machine learning and computational technologies. These stocks have become increasingly attractive to traders and investors seeking exposure to the transformative potential of AI across multiple sectors.

What types of AI stocks are available in Singapore?

Singapore-based AI-centric companies offering public shares include AEM Pte Ltd, Venture Corp, Sea Limited, Grab Holdings, and Razer Inc.

Meanwhile, key global AI stocks include tech giants like Nvidia, which designs critical graphics processing units (GPUs) essential for AI computational power, and Alphabet (Google), whose deep machine learning research drives innovative applications. Companies like Microsoft and Amazon have also positioned themselves as significant AI infrastructure and cloud computing providers.

How does Singapore’s AI market compare globally?

Singapore punches well above its weight in the global AI landscape, ranking among the top five most advanced AI ecosystems worldwide. Despite its small geographic size, the city-state has strategically positioned itself as a technological powerhouse through:

• Substantial government investments (over S$500 million in AI research)
• World-class research institutions
• Supportive regulatory frameworks
• Strong tech talent development programmes

Compared globally, Singapore excels in: Fintech AI applications, smart city technologies, enterprise-level machine learning solutions, and cybersecurity intelligence

While not matching the scale of US or Chinese AI markets, Singapore represents a sophisticated, highly specialised AI ecosystem that serves as a critical innovation hub for Southeast Asia, attracting significant multinational technology investments and talent.

How do AI companies generate revenue?

AI companies generate revenue through diverse and innovative monetisation models:

1. Primary revenue streams:

• Software-as-a-Service (SaaS) subscriptions
• Custom AI solution development
• Cloud-based AI infrastructure licensing
• Data analytics services
• AI technology consultation

2. Specialised revenue channels:

• Enterprise AI implementation
• Machine learning model training
• Predictive analytics platforms
• Algorithmic trading systems
• Intelligent automation solutions

3. Advanced approaches:

• Per-usage computational pricing
• Performance-based contract structures
• Tiered service model offerings
• Intellectual property licensing
• Strategic technology partnerships

The most successful AI companies create scalable solutions that solve complex business challenges while maintaining flexible, adaptable revenue generation strategies.

Investing in AI stocks requires careful research. Investors should evaluate a company's technological sophistication, research and development investments, market positioning, and potential for scalable AI applications. While promising, the AI stock market remains dynamic and can be volatile, demanding strategic and informed investment approaches.

AI stocks advantages and disadvantages

Why might traders and investors consider AI stocks?

1. High growth potential

AI stocks represent a high-growth sector with unprecedented scalability. Companies at the forefront of AI are experiencing exponential revenue growth, often outperforming traditional market segments. The global AI market is projected to reach approximately US$244 billion by 2025, with some estimates ranging as high as US$638 billion, representing significant growth from previous years².

2. Exposure to innovative technologies

By investing in AI stocks, investors gain direct exposure to groundbreaking technological developments. These companies are not just creating products but are fundamentally reshaping industries like healthcare, finance, transportation, and manufacturing through intelligent automation and predictive technologies.

3. Diverse sub-sectors

The AI stock market is a diverse sector. Investors can diversify across various sub-sectors, including:

• Hardware manufacturers (semiconductor companies)
• Software developers
• Cloud computing providers
• Robotics and automation firms
• Machine learning research companies

4. More resistant to risk

AI-driven companies often demonstrate greater adaptability and resilience. Their ability to quickly analyse market trends, optimise operations, and predict challenges makes them more robust and risk-resistant during economic fluctuations.

5. Long-term value

Unlike speculative investments, AI stocks represent companies actively solving complex global challenges. Their potential to create long-term value extends beyond immediate financial returns, offering investors a stake in solving critical technological and societal problems.

What risks should I be aware of?

1. Technological volatility

The AI sector is characterised by rapid technological shifts, creating significant market unpredictability. Breakthrough innovations can quickly render existing technologies obsolete, potentially causing dramatic stock value fluctuations. A cutting-edge AI technology today might become outdated within months, creating substantial investment uncertainty.

2. Regulatory uncertainty

Emerging AI technologies face complex regulatory landscapes. Governments worldwide are developing frameworks to address ethical concerns, data privacy, and potential technological risks. Sudden regulatory changes can dramatically impact AI company valuations, creating unexpected market disruptions.

3. Overvaluation concerns

Many AI companies are valued based on future potential rather than current financial performance. This speculative pricing model increases the risk of market bubbles, where stock prices may not reflect genuine technological or financial capabilities.

4. Technical complexity challenges

AI technologies require sophisticated understanding. Investors without deep technological expertise might struggle to accurately assess a company's true innovative potential, leading to uninformed investment decisions.

5. Market competition risks

The AI sector is intensely competitive, with numerous companies competing for technological supremacy. Smaller firms can be quickly overwhelmed by tech giants like Google, Microsoft, and Amazon, potentially rendering promising startups irrelevant.

How do AI stocks fit into a diversified portfolio?

AI stocks offer strategic portfolio diversification by providing exposure to high-growth technological sectors. Analysts recommend an allocation of 5% to 10% of one’s total investment portfolio, alongside exposure to traditional sectors like healthcare, finance, and energy as a way of mitigating risk while still capturing innovation-driven returns.

Top AI stocks for Singapore traders to watch
 

1. Nvidia Corp (NASDAQ: NVDA)

Sector: AI hardware, semiconductors 

Share price (October 2025): US$183.05

Key trading data (October 2025):

• Year-to-date (YTD) performance: Up 43% in 2025¹
• Recent movement: Rose 2.6% on 13 October following easing U.S.–China tariff tensions²
• Extended hours price: US$187 (+2.10%)
• Market sentiment: Boosted by partnerships with Meta, Oracle, Intel, and ABB for AI data centers³

Trading characteristics:

• Earnings sensitivity: High movement around quarterly results
• Sector exposure: AI chip demand from cloud providers and enterprise clients⁴
• Catalysts: Product launches, geopolitical shifts, new partnerships

Recent stock developments:

• Mizuho raised Nvidia’s price target to US$225, citing dominance in AI data center infrastructure⁵

2. Advanced Micro Devices (NASDAQ: AMD)

Sector: AI chips, semiconductors 

Share price (October 2025): US$214.906

Key trading data (October 2025):

• One-day range (10 October 2025): US$213.20 – US$234.227
• 52-week range: US$76.48 – US$240.108
• After-hours price: US$215.20 (+0.14%)
• Recent trend: Shares dipped 7.72% on 10 October amid sector-wide pullback

Trading characteristics:

• Volatility: Reacts to competitive moves and macro shifts
• Catalysts: AI chip orders, export license updates, OpenAI partnership

Recent stock developments:

• Despite recent dips, AMD remains a top AI hardware play among institutional investors who hold 69% of overall shares9

3. Sea Limited (NYSE: SE)

Sector: E-commerce, gaming, digital finance

Share price (October 2025): US$180.82 

Key trading data (October 2025)¹⁰:

• 52-week range: US$92.50 – US$199.30
• Recent volatility: Shares fell 3.82% on 10 October 2025 after opening at US$186.60 and hitting a low of US$180.00
• Volume: Averaging 3.37 million shares daily
• Market cap: US$107.05 billion
• P/E ratio - trailing twelve months (TTM): 94.93

Trading characteristics:

• Price volatility: Price fluctuations driven by quarterly earnings and regional market sentiment
• High liquidity: High daily volume and tight spreads
• Catalysts: Shopee GMV trends, SeaMoney expansion, Garena game launches¹¹

Recent stock developments:

• Sea’s stock remains 9.27% below its 52-week high, which could be indicative of investor caution ahead of Q3 earnings¹²

Top 3 AI stocks for Singapore investors to watch
 

1. Alphabet Inc. (NASDAQ: GOOG)
 

Sector: AI, cloud, advertising 

Share price (October 2025): US$238.19

Q2 2025 financial highlights¹³:

• Revenue: US$96.43 billion, up 13.8% year-over-year (YoY)
• Earning per share (EPS): US$2.31 (beat consensus by US$0.19)
• Google Cloud revenue grew 32% YoY to US$13.6 billion

Strategic positioning¹⁴:

• AI ecosystem includes Google Cloud, DeepMind, and Gemini
• Diversified revenue across search, cloud, and enterprise software

Recent company developments:

• Alphabet’s antitrust win and strong cloud growth lifted investor sentiment.¹⁵ Capital expenditure (capex) guidance was raised to US$85 billion to support AI infrastructure.¹⁶

2. Taiwan Semiconductor Manufacturing Co. (NYSE: TSM)

Sector: Semiconductor foundry 

Share price (October 2025): US$285.08 

Q3 2025 financial highlights¹⁷:

• Revenue: US$32.47 billion, up 30% YoY
• Gross margin: 55.5% – 57.5%
• Driven by demand from Nvidia and Apple

Strategic positioning:

• Leading manufacturer of 3nm and 2nm chips
• Supplies AI hardware to global tech firms

Recent company developments:

• TSMC beat Q3 estimates and raised guidance. Bank of America lifted its price target to NT$1,600 (US$330), citing AI chip demand.¹⁸

3. Microsoft Corp. (NASDAQ: MSFT)

Sector: Cloud, AI, enterprise software 

Share price (October 2025): US$514.40

Q4 FY25 financial highlights:

• Revenue: US$76.44 billion, up 18.1% YoY¹⁹
• EPS: US$3.65 (beat consensus estimates by US$0.30)²⁰
• Microsoft Cloud revenue reached US$46.7 billion²¹

Strategic positioning:

• AI integration across Microsoft 365, Azure, and Copilot
• Stake in OpenAI enhances innovation pipeline

Recent company developments:

• Azure surpassed US$75 billion in annual revenue. Microsoft returned US$9.4 billion to shareholders in Q4, with strong free cash flow and commercial bookings.²²

How to approach AI stock investing

Successful AI stock investing requires continuous learning, understanding technological trends, and maintaining a balanced, research-driven approach. Investors are advised to focus on established tech companies with strong research and development pipelines, proven technological capabilities, long-term potential, and clear strategic vision.

What should I research before investing?
 

1. Financial fundamentals

Before investing in AI stocks, investors must conduct a deep dive into the company's financial health. This involves meticulously examining revenue growth trajectories, profit margins, research and development spending, debt-to-equity ratios, and cash flow sustainability. These metrics provide crucial insights into a company's financial stability and potential for future technological investments.

2. Technological assessment

Understanding a company's technological capabilities is paramount. Investors should evaluate the strength of the patent portfolio, proprietary AI technology innovations, scalability of technological solutions, and competitive positioning. This requires a nuanced analysis of how effectively a company can develop, implement, and adapt advanced AI technologies across different market segments.

3. Management expertise

The leadership team's background and vision are critical indicators of potential success. Research should focus on the management's technological expertise, track record of successful innovations, strategic vision alignment, and professional credentials. A team with deep technological understanding and proven innovation history could significantly increase the likelihood of sustainable AI development.

4. Market ecosystem analysis

A comprehensive understanding of the broader market ecosystem is essential. This includes analysing the competitive landscape, potential for market disruption, regulatory environments, global technological trends, and sector-specific growth projections. Investors must look beyond individual company performance and understand the macro-technological dynamics shaping the AI industry.

How can I access AI stocks in Singapore?
 

Singapore investors can access AI stocks through local brokers or international trading platforms like IG.

Before deciding on which broker or trading platform to use, it is important that investors compare commission rates, international trading fees, minimum investment requirements, and available markets.

IG offers over 10,000 international stocks and ETFs for you to choose from. If you’re looking for inspiration for an AI stock to take a position on, consider using our stocks screener tool.

How to trade and invest in AI stocks with IG Singapore

CFD share trading
 

1. Create a live or demo account
2. Find an opportunity among one of our 10,000+ stocks with our  stock screener
3. Click ‘buy’ to go long or ‘sell’ to short
4. Set your position size
5. Take steps to manage your risk
6. Open and monitor your position

Investing
 

1. Open an account via IG Markets Singapore app
2. Search for AI stocks on the app
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

AI shares frequently asked questions

Footnotes

_{1 Nvidia YTD Performance – MSN
2 Nvidia Surge – Invezz
3 Nvidia Partnerships – MSN
4 Nvidia Partnerships – MSN
5 Nvidia Partnerships – MSN
6 AMD Price History – Investing.com
7 AMD Price History – Investing.com
8 AMD Price History – Investing.com
9 Yahoo! Finance - AMD Stock Major Holders
10 Sea Ltd – Financial Times
11 Nasdaq.com - 3 Ways Sea Limited Can Grow
12 Sea Ltd – Financial Times
13 Alphabet Q2 2025 – SEC Filing
14 Alphabet Q2 Earnings Call – Yahoo Finance
15 Alphabet Antitrust Ruling – Yahoo Finance
16 The Business Times - Alphabet surprises with capital spending boost
17 TSMC Q3 2025 Results
18 Bank of America on TSMC – Yahoo Finance
19 Microsoft Q4 FY25 – Microsoft Investor Relations
20 Microsoft Earnings Summary – MarketBeat
21 Microsoft Q4 FY25 – Microsoft Investor Relations
22 Microsoft Q4 FY25 – Microsoft Investor Relations}