Investing is the key to growing wealth. Working out where to actually invest is not always easy however. Here, I’m going to discuss three ideas as we start March. These won’t be for everyone. However, for long-term, risk-tolerant investors, I reckon they’re worth considering.
AI stocks
Let’s start with artificial intelligence (AI) stocks as this is a hot topic at the moment. It seems the launch of AI-powered chatbot ChatGPT has woken everyone up to the immense potential of this powerful new technology.
Now there are many different types of AI stocks to invest in. One option is to target Big Tech companies such as Microsoft and Alphabet, which are spearheading the AI revolution.
Another option is to invest in semiconductor companies such Nvidia and NXP Semiconductors, which provide hardware designed to boost computing power.
Personally, I’m taking a broad approach to the theme as we don’t know who the real winners will be at this stage. I own three of the four stocks listed above, and also have a holding in the Sanlam Global Artificial Intelligence fund.
Cybersecurity shares
Another area of technology that I believe is worth a closer look right now is cybersecurity. Cybercrime is a major threat to businesses worldwide today. And the problem is only likely to get worse.
Investing in cybersecurity is no longer optional for businesses, governments and other organisations – in today’s online world, it’s essential.
Betashares
One cybersecurity stock I own is UK-listed GB Group. It provides identity management solutions. It has a blue-chip customer base and is growing at a healthy rate.
Another stock I’m looking at is CrowdStrike. It provides endpoint security, threat intelligence, and cyber attack response services.
I’m also considering a thematic exchange-traded fund (ETF) to reduce stock-specific risk. On Hargreaves Lansdown there are a number of cybersecurity-focused products available including the First Trust Nasdaq Cybersecurity UCITS ETF.
Renewable energy stocks
Finally, renewable energy stocks are another investment idea I think is worth considering. In the years ahead, the clean energy industry is only going to get bigger.
An area of renewable energy that interests me is solar. According to Bloomberg Intelligence (BI), global solar demand increased approximately 40% in 2022, with industry revenues rising about 50%. In 2023, BI expects solar demand to rise another 20-30% globally.
One stock I’m considering for my own portfolio here is SolarEdge Technologies. It’s generating strong revenue growth (+61% last quarter) and is already profitable.
A second stock I’m looking at is UK-listed Renewables Infrastructure. It’s an investment company that owns a broad portfolio of wind and solar farms across the UK and Europe.
Again, taking a broad approach here is sensible, to my mind. Given that the renewable energy industry is in its early days, it’s hard to know who the real winners will be.
