The technology sector is a huge investment opportunity for investors like me. Today almost everything is dependent on solutions provided by various tech stocks around the world. The industry in America alone has an approximate $2 trillion economic impact, according to Cyber States. 

The volatility among tech stocks

Tech stocks cater to a variety of industries. These include manufacturing, design work, advertising, healthcare and many others. But while the technology may vastly differ between each company, most share one thing in common. And that is a volatile share price. 

Innovation is rampant within this sector. With low barriers to entry, established players are constantly having to invest in improving their technology to retain their customer base. It seems no one is entirely safe in this fiercely competitive environment. But one area which has proven to be a challenge is artificial intelligence (AI).

AI is still within its infancy. But it offers new solutions to solving complex problems. And is at the core of technologies, like self-driving vehicles. According to a report published by Facts & Factors Research, the AI market is expected to grow 35.6% annually until 2026, reaching a market size of $299.64bn. Needless to say, that sounds like an exciting opportunity for my portfolio. But which tech stocks should I buy to take advantage of this?

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My top AI stocks

NVIDIA Corporation (NASDAQ:NVDA) is my top pick amongst AI-driven tech stocks. This chipmaker has transformed consumer electronics from high-tech gaming to autonomous vehicles over the last two decades. 

As an investor, what sparks my interest is the multi-fold increase in the tech stock’s share price over the past three years. However, the recent vulnerability in NVIDIA’s software has created uncertainty amongst investors. With zero tolerance over security breaches, this news likely had a significant impact on the tech stock’s reputation.

But, I believe NVIDIA can overcome this hurdle. The chipmaker is halfway down the road to becoming the next trillion-dollar company. And with solid financials to back it, I’m definitely considering adding this business to my portfolio.

IBM (NYSE:IBM) is my second AI tech stock pick. While it’s certainly not the fanciest business out there, IBM has a long history of success under its belt. And vast expertise in the field of AI.

Over several decades, it has made some substantial investments in building and deploying AI-powered systems. These efforts have culminated in the recent launch of an AI starter kit, which facilitates operationalising and industrialising AI-powered applications and has pushed the company’s position further.

It’s true revenues have been on a downward trajectory in recent years, primarily due to legacy product demand decline. Naturally, this is not a good sign. But, personally, I believe that over the long term, IBM can reinvigorate itself with the launch of new technologies. And so, I’d still buy the tech stock today.