How To Use AI To Trade Stocks And Make Money [2025]
Lazy Programmer
From AI-powered trading bots to companies leading AI innovation, investors have plenty of opportunities to capitalize on this fast-growing sector. But which AI stocks are worth investing in? How can you use AI to trade stocks and make money?
This article will break down everything you need to know about AI stocks, the best AI companies to invest in, and how to leverage AI for trading. Whether you’re a professional investor or just starting, this guide will help you navigate the AI boom in the stock market.
Best AI Stocks to Buy in Spring 2025
If you’re looking for AI stocks to invest in, here are some of the best options:.
Nvidia (NVDA)
- Why Invest? Nvidia is the undisputed leader in AI chips, powering everything from ChatGPT to AI-driven supercomputers.
- Growth Potential: With the surge in AI demand, Nvidia’s revenue from AI chips is skyrocketing.
Alphabet (GOOGL)
- Why Invest? Google’s AI research division, DeepMind, is pioneering machine learning innovations. Google also integrates AI across its products, from search engines to cloud computing.
- Growth Potential: Its investments in AI-driven search and advertising are expected to fuel revenue growth.
Microsoft (MSFT)
- Why Invest? Microsoft has partnered with OpenAI (the creators of ChatGPT) and is integrating AI into its cloud services, Office products, and cybersecurity.
- Growth Potential: The expansion of AI-driven Azure cloud services is a strong growth driver.
Amazon (AMZN)
- Why Invest? Amazon’s AI-powered recommendation engine, AWS AI cloud services, and automation tools make it a dominant player in AI.
- Growth Potential: AI-driven logistics and cloud computing give Amazon a competitive edge.
Tesla (TSLA)
- Why Invest? Tesla is not just an electric vehicle company. Its self-driving technology and AI-powered robotics have the potential to transform multiple industries.
- Growth Potential: Tesla’s AI-driven autonomy software could be a multi-billion-dollar business.
Cheap AI Stocks with High Growth Potential
If you’re looking for affordable AI stocks, these companies might be worth considering:
- Palantir (PLTR) – $10-$25 Range: Specializes in AI-driven data analytics for governments and enterprises.
- C3.ai (AI) – $20-$35 Range: A pure-play AI company offering enterprise AI solutions.
- SoundHound AI (SOUN) – Under $10: A leader in AI-powered voice recognition and natural language processing.
- BigBear.ai (BBAI) – Under $5: Focuses on AI-driven decision intelligence solutions for businesses.
How to Build an AI Trading Bot: A Step-by-Step Guide
AI trading bots use machine learning and automation to execute trades efficiently. If you want to build your own, follow these three key steps.
Step 1: Choose a Trading Strategy and Collect Data
Decide on a strategy, such as:
- Trend Following – Buy rising stocks and sell declining ones.
- Mean Reversion – Buy undervalued stocks and sell at highs.
- Sentiment-Based Trading – Analyze news and social media to gauge market mood.
Gather historical and real-time stock data using APIs like Yahoo Finance, Alpaca, or Binance. Preprocess data by normalizing values and applying indicators like Moving Averages and RSI.
Step 2: Train an AI Model to Predict Trades
Use Python libraries like Scikit-learn, TensorFlow, or PyTorch to train your bot.
- Linear Regression – Predicts price trends.
- Random Forest – Handles multiple indicators.
- LSTM (Deep Learning) – Best for time-series forecasting.
Backtest your model on past data to assess accuracy before moving to real-time trading.
Step 3: Automate Trade Execution and Risk Management
Connect your bot to a trading platform using APIs like Alpaca (stocks) or Binance (crypto). Use Python to execute trades:
api.submit_order(symbol="AAPL", qty=10, side="buy", type="market", time_in_force="gtc")
Implement risk management:
- Stop-Loss Orders – Limits losses.
- Take-Profit Orders – Locks in gains.
- Position Sizing – Trades only a fraction of your portfolio.
What Does the Future of AI in Stock Trading Look Like?
AI is set to become an even bigger force in the stock market, driven by advancements in machine learning, quantum computing, and natural language processing.
In the coming years, traditional hedge funds will increasingly rely on AI to outperform the market, leveraging data-driven strategies for better risk management and returns.
AI-powered robo-advisors will also become more prevalent, offering personalized investment recommendations to retail investors and improving financial decision-making.
Additionally, AI trading models will continue to evolve, becoming faster and more accurate in predicting stock movements, further enhancing efficiency and profitability in financial markets.
How to Build a ChatGPT Pairs Trading Bot the Easy Way
Now is the perfect time to learn machine learning and deep learning so you can use AI to trade stocks and make smarter investment decisions. AI-powered trading is already shaping the future, and those who start now will have a huge advantage.
If you’re serious about AI stocks and want to build your own AI trading bot, there’s a great course that can help. This course will teach you how to use AI for algorithmic trading in stocks, crypto, and forex. You’ll learn how to build a pairs trading bot, optimize strategies, and avoid common mistakes when working with AI models like ChatGPT and GPT-4.
This is your chance to be part of it. Instead of just reading about AI stocks, why not start trading with AI yourself? Sign up now and take the first step toward building your own AI-powered trading system!
