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. Advanced Micro Devices (NASDAQ: AMD)

Sector: AI chips, semiconductors
Share price (January 2026): US$232

Key trading data (20 January 2026):

• One‑day range (20 Jan 2026): US$225.41 to US$239.50
• 52‑week range: US$76.48 to US$267.08

Trading characteristics:

• Volatility: Reacts sharply to product launches, guidance and macro shifts.
• Catalysts: AI GPU orders, server design wins, export/license developments.

Recent stock developments: AMD showed heavy institutional flows in mid‑January 2026 as MI‑series adoption and enterprise design wins supported sentiment.

2. Sea Limited (NYSE: SE)
 

Sector: E‑commerce, gaming, digital finance
Share price (mid-January 2026): US$121.40

Key trading data (mid‑Jan 2026):

• One‑day range (16 Jan 2026): US$120.90 to US$124.38
• 52‑week range: US$99.50 to US$199.30

Trading characteristics:

• Volatility: Event‑driven around Shopee GMV, Garena releases and payments metrics.
• Catalysts: Quarterly GMV, regional macro data, payments adoption.

Recent stock developments: Sea Management’s push on cost discipline and SeaMoney monetisation created short‑term trading opportunities in early 2026.

3. Palantir Technologies (NASDAQ: PLTR)

Sector: Data analytics, AI software
Share price (January 2026): US$168.53

Key trading data (20 January 2026):

• One‑day range (20 Jan 2026): US$166.24 to US$171.97
• 52‑week range: US$66.12 to US$207.52

Trading characteristics:

• Volatility: High; sharp moves on bookings, contract wins and product announcements.
• Catalysts: Major commercial/government contracts, annual recurring revenue (ARR) and bookings cadence.

Recent stock developments: Late‑2025 and early‑2026 commercial pipeline expansion and AI product rollouts produced episodic rallies and pullbacks for Palantir traders.

4. C3.ai (NYSE: AI)
 

Sector: Enterprise AI software (SaaS)
Share price (January 2026): US$12.49

Key trading data (20 January 2026):

• One‑day range (20 Jan 2026): US$12.35 to US$12.92
• 52‑week range: US$12.27 to US$35.98

Trading characteristics:

• Volatility: Elevated percentage swings due to smaller market cap and sentiment sensitivity.
• Catalysts: Large enterprise contracts, ARR guidance, partner integrations.

Recent stock developments: C3.ai contract announcements and platform updates continue to drive short‑term moves, while longer-view traders focus on ARR and renewal metrics.

5. Baidu, Inc. (NASDAQ: BIDU)
 

Sector: AI models, cloud, search
Share price (January 2026): US$150.73

Key trading data (20 January 2026):

• One‑day range (20 Jan 2026): US$150.54 to US$155.42
• 52‑week range: US$74.71 to US$165.30

Trading characteristics:

• Volatility: Event‑driven with sensitivity to China regulatory headlines and product monetisation.
• Catalysts: New model launches, cloud revenue beats, strategic partnerships.

Recent stock developments: Baidu’s commercialisation of large models and cloud growth created multiple trading opportunities in January 2026, though regulatory/geopolitical risk remains a key watch item.

Top 5 AI stocks for Singapore investors to watch
 

1. Alphabet Inc. (NASDAQ: GOOG)
 

Sector: AI, cloud, advertising 
Share price (January 2026): US$322

Third-quarter (Q3) 2025 financial highlights:

• Total revenue: US$102.3 billion, up 16% year-over-year (YoY).
• Net income / diluted earnings per share (EPS): Net income US$35.0 billion (up 33% YoY); diluted EPS US$2.87, (up 35% YoY).
• Operating margin (GAAP - unadjusted): 30.5% (versus 32.0% a year ago).
• Operating income (GAAP): US$31.2 billion versus US$28.5 billion a year ago.

Strategic positioning:

• Full‑stack AI play: Alphabet combines Search, YouTube, Google Cloud, DeepMind and Gemini to monetise models across advertising, subscriptions and enterprise services. 
• Cloud backlog and enterprise demand: Google Cloud ended the quarter with a US$155 billion backlog.

Recent company developments:

• Raised 2025 capex guidance to US$91 to US$93 billion to support AI infrastructure build‑out.
• Accrued an European Commission fine (~US$3.5 billion) in Q3 2025

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

Sector: Semiconductor foundry 
Share price (January 2026): US$327

Q3 2025 financial highlights:

• Revenue: NT$1.1 trillion (US$33.7 billion), up 25.5% YoY.
• Net income / diluted EPS: Net income was NT$505.74 billion (up 11.8% YoY); diluted EPS was NT$19.50 (US$3.14 per unit).
• Margins: Gross margin was 62.3%, operating margin was 54.0%, while net profit margin was 48.3%.

Strategic positioning: 

• TSMC is a global foundry leader with unmatched scale in advanced nodes (3nm/5nm/7nm). 
• Critical supplier to AI chipmakers (NVIDIA, AMD, Apple, etc.), enabling next‑generation GPUs and CPUs.

Recent company developments:

• Q4 2025 results beat expectations with ‘record’ margins and strong AI‑driven demand.
• Management guided Q1 2026 revenue to US$34.6–35.8 billion, with gross margin expected at 63% to 65% and operating margin at 54% to 56%.

3. Microsoft Corp. (NASDAQ: MSFT)

Sector: Cloud, AI, enterprise software 
Share price (January 2026): US$456

Q1 FY2026 financial highlights:

• Revenue: US$77.7 billion, up 18% YoY.
• Operating income: US$38.0 billion, up 24% YoY.
• Net income (GAAP): US$27.7 billion, up 12% YoY.
• Diluted EPS (GAAP): US$3.72, up 13% YoY.

Strategic positioning:

• Platform + AI factory: Microsoft combines Azure infrastructure, Microsoft 365 + Copilot integrations, Dynamics/LinkedIn, and enterprise services to monetise AI across productivity and vertical solutions. 
• Scale advantage: Large commercial backlog and recurring enterprise contracts give Microsoft durable monetisation pathways for AI services and Copilot deployments.

Recent company developments:

• Strong start to FY26: Microsoft beat expectations across revenue, operating income and EPS, driven by cloud and AI demand.
• OpenAI investment impact: Non‑GAAP metrics exclude a US$3.1B OpenAI investment impact in the quarter.

4. Nvidia Corporation (NASDAQ: NVDA)
 

Sector: AI hardware, semiconductors
Share price (January 2026): US$178.07

Q3 2026 financial highlights:

• Revenue: US$57.0 billion (record), up 62% YoY.
• Data Center revenue: US$51.2 billion, up 73% YoY.
• Gross margins: GAAP gross margin ~73.4%.
• Operating income: US$29.6 billion (GAAP), up 118% YoY.

Strategic positioning: 

• Global leader in AI computing: Nvidia’s Blackwell architecture GPUs power training and inference workloads across hyperscale data centers.
• Ecosystem strength: CUDA software stack, networking (InfiniBand/Ethernet), and partnerships with major cloud providers reinforce Nvidia’s moat.

Recent company developments:

• Management highlighted record demand for AI infrastructure, with supply largely sold out through 2026.
• Announced expanded partnerships with AWS, Microsoft Azure, and Google Cloud to deliver GPU clusters for generative AI workloads.

5. ASML Holding (NASDAQ: ASML)
 

Sector: Lithography equipment, semiconductor capital goods
Share price (January 2026): US$1,326

Q3 2025 financial highlights:

• Total net sales: 7.52 billion euros, in line with guidance.
• Gross margin: 51.6%, up from 50.8% a year ago.
• Net income: 2.12 billion euros, up from 2.08 billion euros a year ago.
• Cash & equivalents: 5.13 billion euros at the end of Q3 2025, up from 4.98 billion euros 

Strategic positioning:

• Near‑monopoly supplier of extreme ultraviolet (EUV) lithography systems, essential for advanced nodes (3nm/2nm) used in AI chips.
• AI integration: Partnership with Mistral AI to embed AI across ASML’s portfolio, improving system performance and customer yield.

Recent company developments:

• Share buyback: repurchased 148 million euros worth of shares in Q3.
• A new buyback program will be announced in January 2026.
• Q4 2025 net sales expected between 9.2 billion euros and 9.8 billion euros

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}