Artificial intelligence took the world by storm last year, where 35% of global companies are utilizing AI in the workplace, and over 70% of those companies are researching how to leverage AI further in their business.
One estimate has the global market size of AI in 2032 to be over $ 2.8 trillion, which would result in a keger or compounded annual growth rate of 19% a year. To put that into context, if you invested $ 10,000 today and another $ 10,000 every year for eight years with a 19% kegger, you’d have over a quarter of a million dollars.
As an investor, these are fantastic times to take advantage of this AI revolution, which is why I’ll be going over the top 10 AI stocks to invest in for the first quarter of this year 2024. I say the first quarter because I’m pretty certain that the landscape is going to be changing drastically in AI throughout the year.
Investing in AI companies is a wise choice because the demand for AI technology is increasing in different industries. AI is changing the way we communicate, work, shop, travel, and do many other things. Additionally, it is opening up new possibilities for creativity and effectiveness in areas like healthcare, education, manufacturing, and entertainment.
Investing in AI stocks can be quite challenging because there are several factors to take into account. These factors include the company’s competitive advantage, growth potential, profitability, valuation, and risk. In addition, AI is a vast and intricate field that includes various types of technologies like machine learning, natural language processing, computer vision, robotics, and many others.
I found some top AI companies to consider investing in for 2024 based on a search on the Internet. This information can help you narrow down your choices.
5 AMAZING AI Stocks for 2024
- Crowdstrike
- Nvidia
- UIPath
- Arista Networks
- Amazon
10 Best AI Stocks to Invest in 2024
And please know there is an extensive list of AI companies to choose from, but I’m only highlighting the few that I think have long-term potential or they make the most sense today. And I’ll try my best to cover many of these other companies in future article.
| Rank | Company | Description | Market Cap (in billions) |
|---|---|---|---|
| 1 | Nvidia (NVDA) | Leading provider of graphics processing units (GPUs), which are essential for training and running AI applications. | 491.01 |
| 2 | Microsoft (MSFT) | Leader in cloud computing and AI, with its Azure cloud platform offering a wide range of AI services. | 1.83 trillion |
| 3 | CrowdStrike | CrowdStrike Holdings, Inc. is an American cybersecurity technology company based in Austin, Texas. | A variety of AI technologies powers leaders in consumer electronics and its products. |
| 4 | IBM (IBM) | Pioneer in AI, with a long history of developing AI technologies. | 114.35 |
| 5 | OpenAI | Non-profit research company that is dedicated to developing safe and beneficial artificial intelligence. | N/A |
| 6 | Google (GOOG) | Pioneer in AI with a long history of developing AI technologies. | 1.43 trillion |
| 7 | Apple (AAPL) | Leader in AI research and development and its AI technologies are used in a variety of Google products. | 2.32 trillion |
| 8 | Meta (META) | Social media company that is using AI to improve its products and services. | 408.89 |
| 9 | DeepMind | Research company that is developing artificial intelligence that can learn and solve problems like humans. | N/A |
| 10 | DataRobot | Provider of AI platforms that make it easy for businesses to build and deploy AI applications. | 6.35 |
| 11 | SAP (SAP) | Provider of enterprise software, and the company is using AI to improve its products and services. | 137.48 |
List of Best AI Stocks to Buy October, 2024
- Google (GOOG)
- Meta Platforms Inc
- OpenAI
- Neuralink
- Baidu
- Apple (AAPL)
- DataRobot
- DataRobot
- SAP (SAP)
- Apple (AAPL)
CrowdStrike
The first company to review is CrowdStrike, which is a cybersecurity company that provides cloud protection and endpoint security, threat intelligence, and cyber attack response services. Their threat detection and deterrence is offered on their Falcon platform.
The best Artificial Intelligence Companies to Invest In are Alphabet Inc, Meta Platforms Inc, OpenAI, Neuralink & Baidu. These are the fastest and most trusted companies to buy stock.
And as AI tools become more broadly available, then it’s easier for those cyber attackers to gain more tools and resources. The demand and the need for companies like CrowdStrike, I think it’s only going to grow over time. I truly believe they’re going to have a long runway of growth ahead of them. Over the past year, the stock has gone up over 167%. But over the past three years, it’s up only 6 .5%. And it hasn’t even met up with its top price of $293, which it had back in 2021.
So right there, we know that there’s some upside. An item to point out is that their revenue is over $2 .2 billion, but they have a negative 8% margin. They’re only 13 years old and they are on the verge of making profit.
Nvidia Corp. (NVDA
The next company is one that everyone should have in your portfolio, and that’s NVIDIA. They’re known for their graphics cards, but their GPUs for AI servers is where they are truly the hottest ticket in town.
So hot that it’s estimated that they have a 90% share of all AI GPUs. But despite all their recent growth, Analysts still speculate that there is a lot of growth ahead of them. And since there are only a few players in the hardware part of AI with such dominance, they stand to be at the top of AI for quite a while.
It’s hard to believe that they had a 228% growth last year and it was at 277% over three years. And their PDU ratio is pretty high at 64, but with the AI growth happening right now, I don’t think anyone knows what the true ceiling is.
Nvidia Corp. (NVDA) is a company that specializes in creating graphics processing units (GPUs) and software platforms. They are known for their expertise in gaming, data centres, automotive, and professional visualization. Nvidia’s GPUs are very popular for training and running AI models, especially for deep learning tasks. In addition to that, Nvidia provides AI solutions for various applications such as cloud computing, edge computing, conversational AI, computer vision, and autonomous driving. Nvidia has been consistently growing its revenue and earnings thanks to its wide range of innovative products. According to Bank of America, they have given NVDA stock a “buy” rating and set a price target of $1,200. As of November 31st, the stock closed at $831.10.
Even though I bought heavy into Nvidia last year, I’m still investing quite a bit this year for the long term with cost value averaging. There happens to be a competitor to Nvidia in the AI hardware space called Ceribris that has the industry shaken up because Ceribris is creating the largest supercomputer for AI called Condor Galaxy, which is created with the Ceribris’s proprietary wafer scale engine, which is 27 million computer cores with 41 terabytes of memory made from one large wafer.
Alphabet Inc., which is also known by its stock ticker symbols GOOG and GOOGL, is a company that I would like to discuss. Alphabet is the company that owns Google, YouTube, and other businesses. These companies use AI and automation in different parts of their operations, like determining ad prices, promoting content, filtering email spam, optimizing search engines, and more. Alphabet is a company that creates and provides AI products and services for both individuals and businesses. Some examples of their offerings include Google Assistant, Google Cloud, Google Photos, Google Translate, Google Maps, Waymo, and DeepMind1. Alphabet is a highly successful and financially robust company known for its strong presence in online advertising and cloud computing. According to Bank of America, they have given GOOG stock a “buy” rating and set a price target of $3,600. As of November 31, the stock closed at $3,120.80.
UiPath
The next AI company is UiPath, which is a software company that provides robotic process automation. Their software can observe, map, and optimize processes within a company, and the beauty of it all is that they can bolt on top of a company’s existing legacy system.
From there, it can provide near-immediate results of automation with a relatively low cost. I personally consult with larger companies all the time and robotic process automation is extremely hot right now because all companies are looking for a competitive advantage and ways to reduce their costs.
The company had a great one-year return, but the three-year at negative 66% is horrible, and from looking at the PDE ratio, you can see that it is operating at a negative margin. Their IPO was in April of 2021, and it peaked at $84 and is trading at about 27% today.
Meta Platforms Inc., previously known as Facebook, is a massive social media company that boasts a whopping 3 billion monthly active users. They offer various platforms like Facebook, Instagram, WhatsApp, Messenger, and Oculus. Meta utilizes artificial intelligence and automation to improve the overall user experience, ensure content moderation, enhance security measures, and optimize advertising efforts. In addition to other investments, Meta also puts resources into AI research and development. They have their own AI lab called FAIR, a natural language processing platform called Wit.ai, and a big language model called Blender1. Meta is also increasing its presence in the metaverse, which is a virtual environment where people can engage with each other and digital content using immersive technologies like virtual reality and augmented reality. According to Bank of America, they have given META stock a “buy” rating and set a price target of $450. As of November 31, the stock closed at $367.81.
OpenAI
OpenAI is a research organization focused on developing and advancing artificial general intelligence (AGI). AGI refers to machines that have the capability to perform any intellectual task that humans can. OpenAI has developed several highly advanced and influential AI systems that are recognized worldwide. Some notable examples include GPT-3, DALL-E, Codex, and DOTA 2. In addition to their language models, OpenAI also provides various AI products and services. One of them is OpenAI Codex, a system that can convert natural language commands into code. Another offering is OpenAI Playground, a platform that enables anyone to explore and experiment with OpenAI’s models. OpenAI has received support from notable tech leaders and investors including Microsoft, Elon Musk, Peter Thiel, and Reid Hoffman. OpenAI is currently not listed on the stock market, but it has intentions to become a publicly traded company in the future.
Baidu
Baidu Inc., also known as Baidu, is a major search engine and online advertising company based in China. It holds the distinction of being the largest search engine in the country, with a massive user base of over 1 billion active users every month. Baidu utilizes AI and automation to enhance its main search and advertising operations. Additionally, they leverage these technologies to create new offerings like Baidu Cloud, Baidu Brain, Baidu Smart Mini Program, Baidu Apollo, and Baidu DuerOS1. Baidu is a company that is at the forefront of AI research and development. They have an impressive track record with over 5,000 AI patents and have established more than 20 AI research institutes and labs. Despite facing intense competition and regulatory challenges in China, Baidu has managed to grow its revenue and earnings steadily. According to Bank of America, they have given BIDU stock a “buy” rating and set a price target of $300. The stock closed at $164.50 on November 31st.
I found a list of top AI companies to invest in 2024 based on a web search using Bing. Here are a few of them. Depending on your risk tolerance, investment timeframe, and personal preferences, there are several other AI stocks that could potentially provide appealing returns. It’s important to conduct your own research and due diligence before making any investment in stocks.
AI stocks have gained significant importance as artificial intelligence technologies continue to revolutionize various industries. Companies that specialize in AI research and development, as well as those integrating AI into their products and services, offer compelling investment opportunities. The increasing demand for automation, data analysis, and machine learning solutions has created a substantial market for AI-related stocks. Investors see potential for growth and innovation in AI, making these stocks a valuable addition to diversified portfolios, as they stand to benefit from the ongoing advancements in AI technology and its transformative impact on businesses across the globe.
Without a doubt, AI Stocks are one of the easy-to-access & amazing add-ons in the decentralized world. So, if you are looking for a reliable list of top ai stocks in 2024 to invest then this guide is all yours.Â
List of Top 10 AI Stocks to Invest Today
1. Alphabet Inc. (Google)
Google is still a major player in the world of online search, and they’ve been incorporating artificial intelligence into their search engine, apps, and products like Google Nest for quite some time. While their stock performance hasn’t been better than the S&P 500 recently, GOOGLE has been making some serious money, and experts think this trend will continue in the coming years. They’re expected to see a 17.9% increase in earnings per share (EPS) in the next year. What’s great is that their forward price-to-earnings (P/E) ratio is pretty reasonable compared to other stocks. So, you can start investing with one of the trusted brands – Alphabet Inc. (Google) today!
2. KLA Cooperation (KLAC)
KLA is a company that specializes in creating diagnostic and monitoring systems for the semiconductor industry. This is important because semiconductors are a crucial component of the computing power of the best artificial intelligence stock projects. In 2024, KLA’s stock saw a significant increase in its value and is currently trading near its highest point. Over the past few years, the company has consistently reported growth in both its sales and earnings. However, analysts are forecasting that this upward trend will slow down in the coming years, with a predicted 15.5% decrease in earnings for the next year. As a result of this anticipated earnings dip, KLA’s stock is considered to have a more cautious valuation when compared to other stocks in a similar group.Â
3. Microsoft Corporation (MSFT)
Microsoft’s recent significant investment in OpenAI shows how committed they are to improving their AI capabilities. The tech giant has been busy launching AI-driven projects, such as a more advanced search engine and even their own AI processor. When you look at the price-to-earnings (P/E) ratios, both the current and forward P/E, they are in line with what you’d expect from tech companies that are set for sustained growth. Microsoft also offers a 0.8% dividend to its shareholders, and they’ve bought back 0.9% of their shares in the past year. Over the past five years, Microsoft has seen impressive growth in its profits. While this growth may slow down a bit, it’s expected to remain strong in the coming years. Experts are predicting a 13.5% increase in earnings per share (EPS) for the next year. Isn’t it amazing?
4. Amazon.com Inc.Â
This is where the need for computers to leverage Amazon’s AWS for cloud-based AI models will result in many years’ worth of growth. Currently, AWS makes up about 13% of Amazon’s revenue, but it accounts for 74% of the operating income.
And on the retail side, their ad revenue had over a 26% growth in 2023. And now that Amazon’s going to be putting ads on their Prime shows, then I expect that their ad revenue is going to jump drastically this year.
In looking at the performance, the one-year is decent at 69%, but the three-year is abysmal at a negative 5%. And when you look at the fact that the stock is way below its high of $185, I believe the next two years are going to be stellar due to the upside in margin.
Of course, Amazon doesn’t need an introduction. Amazon is not just an online store; it has a strong presence in cloud services and data management, which provides a solid foundation for developing and improving AI projects. On top of that, these top artificial intelligence stocks have brought AI-powered products like Alexa and Echo into our lives. In 2022, Amazon’s stock took a significant hit, dropping by nearly half, but things are looking up in 2024 as the company’s earnings are starting to bounce back. The year ahead is expected to be a good one for Amazon, with a strong 63.3% increase in earnings projected. Additionally, Amazon has started a program to buy back its shares, which means they’re actively repurchasing their stock, and this has resulted in a buyback yield of 0.3%.
5. Palo Alto Networks, Inc. (PANW)
Palo Alto specializes in providing security solutions for networks and cloud systems, which are crucial for many AI projects. In 2024, their stock has performed quite well, reaching its highest value. While the company hasn’t turned a profit so far, projections indicate that it could earn $4.27 per share in 2024. Analysts are even more optimistic about the following year, with expectations of a 17.3% growth in earnings per share (EPS) and even more substantial growth in the years to come. Investors are looking forward to the potential of earnings reaching $10 per share shortly, which would translate to a price-to-earnings ratio of 25:1. Ultimately, it is the investor’s favourite investment. So, you can make it yours today!!
6. Synopsys, Inc. (SNPS)
Synopsys is a company that provides design automation tools for those working in the microchip manufacturing industry. They offer a compelling combination of recent profit growth, promising prospects, and a consistently increasing stock value. Out of all the stocks mentioned in this list, Synopsys stands out with the most impressive earnings growth over the past five years. Analysts are also optimistic, forecasting a 13.8% growth in earnings per share (EPS) for the upcoming year. The company’s practice of buying back its shares has had a positive impact on the stock’s value, currently resulting in a buyback yield of 1.4%. While Synopsys, like many other stocks in this group, trades at a premium price-to-earnings (P/E) ratio, the forward P/E, which takes into account projected future earnings, seems more reasonable. This could make it a more attractive investment.
7. IBM
IBM, known for its Watson products, offers AI and machine learning services that do some pretty impressive things for its customers. Watson’s Best AI stocks to Buy Now or solutions help businesses make smarter decisions and increase their profits. They’ve got a bunch of AI applications that not only enhance customer service and save money but also predict outcomes and automate workflow processes. If you’re an enterprise looking to build and expand your own AI apps, you can turn to IBM’s Watson Studio for help. IBM has been quite active in the AI field, too. They’ve been acquiring some cool AI companies like Turbonomic, Instana, and Databand.ai in recent years. So, IBM is all about bringing the power of AI to the table, making businesses more efficient and profitable with their AI and machine learning offerings.
8. Micron Technology ‘(MU)
Micron Technology is all about creating supercharged memory and storage hardware that makes AI systems run like a dream. Their high-performance chips are the secret sauce behind the AI magic you see in data centres and even self-driving cars. In their quest to be even more awesome in the AI world, Micron made a smart move in 2019 by acquiring a startup called FWDNXT. This nifty startup brought in some cool hardware and software solutions that work like rocket fuel for deep learning and neural networks. In a nutshell, Micron is all about giving AI the turbo boost it needs to do its incredible work, whether it’s in the cloud or your autonomous vehicle on the road.
9. Microsoft (MFST)
In 2019, Microsoft embarked on an investment journey with OpenAI, the creators of ChatGPT. They kicked off this partnership with a whopping $1 billion investment and an exclusive agreement for Microsoft to provide cloud computing services to the AI lab. But the story doesn’t end there. Fast forward to January 2024, and Microsoft made a big announcement – they’re extending their partnership with OpenAI into a “multiyear, multibillion-dollar investment.” Microsoft’s ambitions go beyond just investments. They are determined to make AI technology accessible to everyone, and they’re doing it through their Azure cloud computing platform. Much like Alphabet, Microsoft also recently introduced an AI chatbot for its Bing search engine. So, you can think about making this profitable investment with a big giant like Microsoft (MFST).
10. Oracle
Oracle is your go-to source for a wide range of tech goodies, from cloud computing infrastructure to nifty software and hardware. They’ve got something called Oracle Cloud Infrastructure, and it’s super smart when it comes to AI. What’s cool is that Oracle recently teamed up with chipmaker Nvidia to supercharge their AI offerings for businesses. In simpler terms, they’re making sure that companies have access to powerful AI tools and capabilities so that they can do amazing things in the digital world. It’s all about helping businesses use artificial intelligence to solve problems, make smarter decisions, and move forward in this high-tech age. So, if you’re in the tech game, Oracle is a name to keep an eye on.
Let’s Summarize Now!!
These top AI stocks in 2024 offer exciting opportunities for investors looking to be part of the AI revolution. Whether it’s Google’s integration of AI into everyday life, Microsoft’s dedication to enhancing AI capabilities, or Amazon’s resilient comeback, these stocks are worth considering. Palo Alto Networks, Synopsys, and IBM bring their unique strengths to the table, while Micron Technology turbocharges AI with high-performance hardware. Microsoft’s partnership with OpenAI and Oracle’s collaboration with Nvidia promises exciting developments in the AI landscape. As AI continues to reshape industries, these stocks offer a gateway to both innovation and profit. So, as you navigate the world of investing in 2024, keep these AI stocks in mind for a promising journey into the future.
