Discounted P/E Ratio Stock Screener - Finding Value Without Guesswork
Learn how P/E and forward P/E ratios signal valuation and how a discounted P/E stock screener helps identify potential value stocks.
TABLE OF CONTENTS
What Is an AI Stock Index? (And Why There Isn’t Just One)
Is there an official AI stock index? Learn why AI defies traditional indexing and how specialized, methodology-driven indices offer the best path for investors.
Artificial Intelligence is no longer a futuristic concept—it is the primary engine of growth across technology, healthcare, finance, manufacturing, and defense. As AI fundamentally reshapes the global economy, investors are racing to capture its value. This leads to one inevitable question:
Is there an official AI stock index?
The short answer is no - at least not in the way you might think. The useful answer, however, explains how the most successful investors are currently tracking the AI revolution.
The Problem With an “Official” AI Stock Index
Unlike the S&P 500 (large-cap US stocks) or the Nasdaq 100 (tech-heavy growth), there is no single, universally recognized AI stock index maintained by a central global exchange or regulator.
Why does AI defy traditional indexing?
Traditional indices rely on static sector classifications (like GICS). AI doesn't fit into a neat box because:
- It is a "Horizontal" Technology: AI isn't an industry; it’s a layer embedded across all sectors.
- It’s a Hybrid Ecosystem: It requires a mix of specialized hardware (chips), massive infrastructure (data centers), and innovative software (LLMs).
- The Velocity of Change: Companies enter and exit "AI relevance" almost monthly. A leader today may be disrupted by an open-source model tomorrow.
The Historical Context: Asking for "the" AI index today is like asking for the “Internet Index” in 1998. The internet eventually became the backbone of almost every company; AI is following the same trajectory.
Defining the Modern AI Stock Index
Since there is no "official" authority, an AI stock index is a curated, rules-based group of publicly traded companies whose core business, revenue, or competitive advantage is meaningfully driven by artificial intelligence.
In the absence of a central benchmark, AI indices are constructed, not discovered. This is why the methodology behind the index is more important than the name itself.
Our Methodology: Precision and Agility
At Investorean, we don't just "pick stocks." We build systematic filters designed to handle the volatility and rapid evolution of the AI sector. Our indices are governed by two fundamental principles that set them apart from traditional benchmarks:
1. Equal-Weight Construction
Most traditional indices are "market-cap weighted," meaning the biggest companies (like Nvidia or Microsoft) dictate almost all the movement. This creates concentration risk.
- The Investorean Difference: Our AI filters are built as equal-weight.
- Why it matters: This ensures that emerging AI leaders have the same impact on the index as the tech giants. It provides a truer reflection of the entire AI ecosystem, not just the top three companies.
2. Monthly Rebalancing
In a sector that moves as fast as Artificial Intelligence, an annual or even quarterly review is too slow. A company that was an AI leader six months ago might be irrelevant today.
- The Investorean Difference: Our indices are rebalanced on a monthly basis, occurring on the first trading day of each month.
- Why it matters: This high-frequency adjustment ensures the index stays "fresh." It allows us to systematically add rising stars and remove companies that no longer meet our strict AI-relevance criteria, keeping your strategy aligned with the current market reality.
Important: For Informational Purposes Only
It is important to note that the indices provided by Investorean are currently for informational and educational purposes only.
- Non-Tradable: These indices cannot be traded directly on any exchange or brokerage. You cannot buy "shares" of an Investorean AI index like you would a traditional ETF or mutual fund.
- A Research Tool: Think of these as a sophisticated "compass" for the AI market. They are designed to provide transparency and insight into how different segments of the AI economy are performing, helping you make more informed decisions for your own portfolio.
Our Approach: A Multi-Index Strategy
At Investorean, we believe pretending there is one "true" AI index is misleading. Instead, we have built a suite of specialized, AI-focused indices, each designed to answer a different strategic question in order to help people analyze the current state of the market.
By breaking AI down into its component parts, we provide more precise exposure:
- AI Infrastructure: Focusing on the hardware and power required to run the AI revolution.
- AI Cloud Platforms: Tracking global technology platforms that provide large-scale cloud infrastructure, AI development frameworks, model hosting, and enterprise AI services.
- AI Software: Highlighting the SaaS companies integrating AI to achieve massive scale.
- AI in Autonomous Driving: Tracking the smaller, high-growth companies that are disrupting established players.
Each index is transparent, methodology-driven, and continuously updated to reflect the reality of the market.
How to Use These Indices for Your Portfolio
While you cannot trade Investorean indices with a single click, they serve as a powerful discovery engine for your personal investment strategy. Here is how savvy investors use them:
1. Identify Shifting Dynamics
By comparing our different indices - such as AI Infrastructure vs. AI Software - you can see which parts of the AI value chain are currently leading the market. If "Infrastructure" is soaring while "Software" is lagging, it tells you where the current capital flow is concentrated.
2. Precise Stock Selection
Instead of guessing which companies are "true" AI players, you can use our index compositions as a pre-vetted shortlist. Our methodology does the heavy lifting of filtering out the "AI-washers" (companies that talk about AI but don't produce AI revenue).
3. Build Your Own "Manual" AI Portfolio
You can use the transparency of our indices to select specific stocks that align with your risk tolerance. By picking a handful of stocks from an Investorean index, you can manually replicate a diversified AI strategy in your own brokerage account, focused only on the names you trust most.
The Bottom Line
There is no "Official AI Stock Index" - and that is actually a feature, not a flaw.
AI is too broad, too fast-moving, and too disruptive to fit into a single, rigid benchmark. The smartest way to invest in the AI economy is through multiple, well-constructed indices that reflect the different layers of this technological shift.
That’s exactly why Investorean doesn’t offer the AI index - it offers the AI indices that actually make sense for the modern investor.
Share on Social Media
Related Posts
What Are the Top 10 Hedge Funds? A Data-Driven Look at the World’s Largest Institutional Investors
An in-depth look at the world’s largest hedge funds and institutional investors, how they operate, and why they dominate global markets.
How You Can Start Using a Swing Trade Scanner in 2025
Learn how swing trade scanners help identify short-term trading opportunities. Discover how Investorean’s intelligent scanning tools simplify your swing trading strategy in 2025.