Want to play the ChatGPT buzz? Analysts love these A.I. stocks — giving one upside of 150%

Published Mon, Feb 6 20238:12 PM EST

Much buzz has been generated around ChatGPT, an artificial intelligence chatbot that's gone viral and reportedly reached 100 million monthly active users in January. ChatGPT, created by San Franciso-based OpenAI — backed by Microsoft — can answer questions, write essays , and more. It was launched in late November 2022. Its popularity has sparked much interest in artificial intelligence tech . "It's become elevated to the next level, and so therefore, I think it's certainly not going away," Kenny Polcari, chief market strategist at SlateStone Wealth, told CNBC's "Street Signs Asia" on Monday. "You really have to consider the role that artificial intelligence is going to play … it's made this quantum leap almost, you know, overnight. And so I think that puts it right smack in the front and center of people's portfolios." For investors considering investing in AI, CNBC Pro has screened two ETFs for stocks: the $1.59 billion Global X Robotics & Artificial Intelligence ETF and the First Trust Nasdaq Artificial Intelligence & Robotics ETF, which tracks the Nasdaq CTA Artificial Intelligence and Robotics Index. Both ETFs have already soared nearly 20% year-to-date. The screen identified AI-related stocks with potential upside of at least 15% on average, according to analysts, and buy ratings from at least 50% of analysts covering them. American firm Berkshire Grey , which develops both AI and robotic tech, stood out for its high potential price target upside — 151% — and for having a buy rating from all analysts covering the stock. Shares of the firm, which counts e-commerce and retail firms among its customers, have soared 87% year-to-date. Voice AI platform SoundHound also got a 100% buy rating, and analysts put its potential average upside at 31%. The company recently announced a deal with customer engagement platform Airmeez, as well as a restructuring plan in an effort to accelerate its path to profitability. Tech giant Alphabet , which analysts have said could be negatively affected by ChatGPT's success , also showed up on the screen. It has 20% average potential upside from analysts, and a 73% buy rating. The tech firm has been stepping up its efforts since the ChatGPT launch. Citi in a Feb. 3 note said that Google could bring "generative AI" to its search platform in weeks, including its PaLM service that can process text, audio and images, as well as its chatbot Sparrow. "[It] all which underscores our view that Alphabet is a key player in shaping overall generative AI (with some inherent advantages in terms of scale and costs) as Microsoft more broadly incorporates ChatGPT across its services," Citi analysts wrote. Some other companies not necessarily known as AI firms also made the cut. Cybersecurity firm Palo Alto Networks , which utilizes AI in its operations, was one, with potential upside of nearly 30% and a 80% buy rating. AI has been said to be playing an increasingly important role in cybersecurity , as it has the potential to better detect threats.