Traders Could Use Google as an Alternate Play on AI

Big tech names like Google are at the forefront in artificial intelligence (AI). Therefore, this makes the company an alternate play on AI if traders want to play that rising trend.

Known for its search engine capabilities, Google is increasingly leaning towards AI. Of course, this opens up additional revenue generation paths, which should keep bullish investors happy.

“We’re excited about the transformational power of AI and the helpful new ways it can be applied,” the company noted on its Google AI website. “From research that expands what’s possible, to product integrations designed to make everyday things easier, and applying AI to make a difference in the lives of those who need it most-we’re committed to responsible innovation and technologies that benefit all of humanity.”

From a trading perspective, this opens opportunities to play AI indirectly.

“All this excitement extends to investors, who may now be considering Google’s stock as a play on the potential AI boom,” noted Direxion Investments in an Xchange blog.

Ways to Play Google and AI

Direxion Investments has a pair of ETFs for Google AI bulls and bears. In particular, the Direxion Daily GOOGL Bull 1.5X Shares (GGLL) and the Direxion Daily GOOGL Bear 1X Shares (GGLS) give traders an extra 50% exposure to play off their notions on whether the stock heads up or down.

“With any boom there are two possible reactions from investors,” the Xchange blog added. “The first is to believe that the hype is real and all the upward momentum is supported by the fundamentals. Then there’s the second take, which is to say the boom is just a bubble that will eventually burst.”

Rather than use single-stock ETFs, traders may want a more broad play on AI. Accordingly, one Direxion fund worth noting is the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT).

With its double dose of leverage, only seasoned traders should utilize this product. UBOT seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. The index aims to provide exposure to exchange-listed companies in developed markets expected to benefit from the adoption of robotics and/or AI.

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