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 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 5 AI stocks to watch in Singapore

1. Nvidia Corp (NASDAQ: NVDA)

Key highlights:

• Leading AI chip manufacturer globally
• Consistent revenue growth AI segment
• Critical infrastructure for generative AI
• Proven management and technological innovation track record

Nvidia represents a compelling investment opportunity in the AI technological ecosystem. As a semiconductor company at the forefront of AI chip development, Nvidia has established itself as an essential infrastructure provider for AI technologies worldwide.

The company's graphics processing units (GPUs) are fundamental to advanced AI computational processes, powering everything from machine learning algorithms to complex generative AI models. With strategic partnerships across technology, cloud computing, and research sectors, Nvidia has positioned itself as a critical enabler of AI technological advancement.

Singaporean investors can benefit from Nvidia's robust market position, consistent technological innovation, and strong financial performance.

2. Sea Limited (NYSE: SE)

Key highlights:

• Leading Southeast Asian digital ecosystem
• Strong AI-driven gaming and e-commerce platform
• Rapidly growing digital financial services
• Local Singaporean technological innovation champion

Sea Limited represents another potential opportunity for Singaporean investors, combining robust technological innovation with strategic digital ecosystem development. As a homegrown technology company, Sea Limited has successfully leveraged AI across multiple digital platforms, including gaming (Garena), e-commerce (Shopee), and digital financial services (SeaMoney).

The company's sophisticated AI algorithms power personalized user experiences, recommendation engines, and advanced digital infrastructure, positioning it uniquely in the Southeast Asian digital marketplace. With significant investments in machine learning and data analytics, Sea Limited continues to expand its technological capabilities and market reach.

3. Taiwan Semiconductor Manufacturing Company (NYSE: TSM)

Key highlights:

• World's largest semiconductor foundry
• Dominant market share: 55-60% global chip production
• Advanced technological manufacturing capabilities
• Critical infrastructure for global AI development

Taiwan Semiconductor Manufacturing Company (TSMC) stands at the epicentre of global technological innovation, serving as the primary manufacturing partner for major AI technology companies worldwide. As the world's most advanced semiconductor foundry, TSMC produces cutting-edge chips for industry leaders like Nvidia, Apple, and AMD.

The company's technological sophistication allows it to manufacture the most advanced semiconductor chips, essential for artificial intelligence, machine learning, and high-performance computing. With continuous investment in research and development, TSMC maintains a significant technological edge in nanometre-scale chip production.

Singapore investors can leverage TSMC's strategic global positioning potentially through direct stock purchase, derivatives like stock CFDs, or technology-focused ETFs with significant TSMC exposure.

4. Alphabet Inc (NYSE: GOOG)

Key highlights:

• Global leader in AI research and development
• Diversified AI applications across multiple platforms
• Substantial financial resources for continuous innovation
• Pioneering generative AI technologies

Alphabet (Google) represents a premier investment opportunity in the AI space, leveraging its extensive technological infrastructure and groundbreaking research capabilities.

As a subsidiary of Alphabet, Google has consistently positioned itself at the forefront of AI technological innovation, developing advanced machine learning models, generative AI technologies, and transformative digital platforms. This diversification has allowed it to monetise AI across multiple platforms - from advertising to cloud services, providing a robust revenue generation model.

The company's significant investments in AI research through Google DeepMind, extensive machine learning applications in search, cloud computing, and emerging technologies like autonomous vehicles further demonstrate its comprehensive technological strategy.

5. AEM Holdings (SGX: AWX)

Key highlights:

• Local Singaporean technology champion
• Strong semiconductor testing technology
• Consistent financial performance
• Strategic position in AI hardware ecosystem

AEM Holdings represents a unique local investment opportunity in the rapidly expanding AI and semiconductor testing infrastructure. As a Singaporean-headquartered technology company, AEM specialises in advanced semiconductor test and handling equipment, positioning itself critically within the global AI hardware supply chain.

The company has demonstrated remarkable adaptability in high-tech manufacturing segments, particularly in developing sophisticated testing solutions for artificial intelligence and machine learning semiconductor chips.

With significant research and development investments, AEM has consistently expanded its technological capabilities and international market presence.

How to approach AI stock investing

Successful AI stock trading requires continuous learning, understanding technological trends, and maintaining a balanced, research-driven approach. Traders 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 AI stocks with IG Singapore

1. Open a live IG trading account
2. Choose between CFD trading on AI stocks, ETFs, or indices
3. Search for AI-related instruments like the AI Index or the CHAT ETF
4. Decide your position size and set stop-losses or limits
5. Monitor and manage trades using IG’s web, mobile or MT4 platforms 

AI shares frequently asked questions

Are AI stocks suitable for new investors?

AI stocks present moderate risks, and are suitable for investors with basic technological understanding, higher risk tolerance, long-term investment horizon, willingness to learn, as well as a sound risk management strategy.

How volatile are AI stocks?

AI stocks typically demonstrate higher volatility than traditional blue-chip stocks. Their volatility is characterised by rapid technological shifts, speculative market sentiment, innovation cycles, regulatory changes, and global tech trends.

Can I invest in US-listed AI stocks from Singapore?

Yes. Investors can invest in US-listed AI stocks via local brokers or trading platforms like IG.

What's the minimum amount needed to start?

IG does not specify a minimum deposit requirement for opening an account. However, certain trading activities or account types may have minimum funding requirements. It's advisable to check the specific requirements when setting up your account. 

Footnotes

_{¹ EQx2025 Global Elite Quality Index ranked Singapore #1 globally for AI readiness and governance. Singapore also ranks 2nd in the Government AI Readiness Index 2024 (Oxford Insights) and 2nd in the Global Labor Resilience Index 2025 for AI innovation leadership.}

_{² Statista Market Forecast, "Artificial Intelligence market worldwide," 2024. Additional projections from Precedence Research estimate the 2025 market at US$638 billion, reflecting the rapid expansion of AI adoption across industries.}