Table of Content
What are the Top AI Stocks that you can invest on in 2024?
The world of AI is growing at an incredible pace, and investors are increasingly looking to capitalize on this trend. If you are considering adding artificial intelligence stocks to your portfolio, you will want to keep an eye on the companies making waves in this sector.
Open an account with Angel One.
What are the Top AI Stocks that you can invest on in 2024?
Here are the top AI stocks to consider investing in for 2024 if you are serious about making investments in the artificial intelligence sector and diversify your portfolio:
Read on AI Stocks in India: Pros and Cons of Investing in 2023.
1. Nvidia Corporation (NVDA)
Nvidia has been a leading player in the AI industry for decades, and it shows no signs of slowing down. The company’s focus on AI technologies has led to steady growth over the past few years, with a 5% growth in the past 5 years. Experts believe this trend will continue, predicting a surge of over 34% in EPS in the next year.
Nvidia’s stock performance has been impressive, with the value increasing from $143 in January 2023 to $420.58 in late September. With a P/E ratio of over 40, it is performing two times better than the S&P 500 list. The company’s share buyback yield is also at 0.8%, indicating long-term growth potential.
Price predictions for Nvidia stock range between $535 and $1,100 by the end of 2024, making it one of the best performers on the market. As such, NVDA stocks should be at the top of your investing priority list moving forward.
2. Advanced Micro Devices, Inc. (AMD)
AMD is Nvidia’s primary competition and is the world’s leading CPU production brand. The company is also the second highest-ranked gaming GPU brand. AMD is currently working on integrating AI into all future chip models, which is expected to drive significant value.
AMD has been one of the best-performing stocks on the market in the past five years, reaching a peak of $155.4 in mid-November 2021. While the stock has lost some value since then, it is still up by 33.60% YTD. The stock is expected to reach an average price of $142.5 in the next 12 months, with a maximum forecast of $200 per share.
3. Alphabet, Inc. (GOOGL)
Alphabet, Inc. is Google’s parent company and is another top contender for the best AI stock to buy. Google is the most popular online search engine globally, and its integration of AI technologies will ensure stable future growth for decades to come. The company is currently working on introducing AI to all processes, applications, and products, making GOOGL stocks a must-have for high returns.
GOOGL stocks did not outperform the S&P 500 list this year, but their EPS was still higher than expected. Experts predict a massive surge in EPS of over 17.9% in the next 12 months, which would drive GOOGL prices from $130 to as much as $200 per share. Google’s current buyback yield is at 4%, and almost all price predictions agree that GOOGL will continue growing in the future.
4. Amazon.com, Inc. (AMZN)
Amazon has evolved from an online marketplace to one of the leading domains for cloud services, data management, and many other markets. Its footprint on global markers keeps growing daily, making AMZN stocks one of the safest investment options in 2023. The company has been working on multiple AI initiatives in the past few years, and once they are introduced, AMZN shares could double in value in the next 12 months.
Amazon also introduced AI tools, such as Alexa and Echo, that have made it to millions of homes worldwide. Despite losing almost 50% in stock value during 2022, AMZN stocks are currently in recovery mode and are up by 45% compared to the same time last year. The company is expecting a surge in earnings of over 63% in 2024, making it one of the best AI stocks you can buy at the moment.
5. C3.ai, Inc. (AI)
C3.ai, Inc. is a software development company that focuses on creating many different large-scale AI solutions. The stock became available in 2020, so it is one of the newest investment options on the market. However, considering the massive popularization of AI solutions in the past year or two, C3.ai stocks are easily one of the best investment options you can make right now.
Most financial experts predict a significant increase in annual EPS over the next five years despite the company not having any profits yet. The profits should pour in by early 2025, with projects of $0.12 per share. Still, AI is mainly speculative, and since the company has been around for only a few years, it is hard to make accurate future price projections. AI stocks are selling for $24.40, significantly lower than their all-time high of $44.50 in mid-April this year.
6. Microsoft Corporation (MSFT)
The Microsoft Corporation is one of the most established and famous companies on the planet. It is also one of the largest investors in OpenAI and is working on finding ways to enhance existing AI solutions and develop new ones. The company has been developing and launching AI initiatives for some time, including an advanced search engine and an AI processor.
Microsoft has been growing steadily during the past five years, outperforming expectations. It is currently using momentum to ensure future growth, and even though it is slowing down, Microsoft is still expected to remain one of the highest gainers in the AI stock market for years. All predictions point toward a 13.5% rise in EPS in 2024, and MSFT also offers a 0.8% dividend and has repurchased 0.9% of its shares in the past 12 months. Microsoft has been among the best-performing stocks for decades, so it is worth checking out.
7. KLA Corporation (KLAC)
KLA is a company that specializes in developing and building diagnostic and monitoring systems for the semiconductor industry. As you may already know, semiconductors are essential for many different technologies, including AI computing capabilities, so KLA plays a crucial role for the entire industry moving forward.
The KLAC stock practically exploded in 2023, reaching an all-time high of over $513 in mid-September. The price is still hovering close to its peak value and is expected to slow growth in the upcoming period. However, keep in mind that KLA is getting a significant boost in sales and earnings every year, so it is undoubtedly one of the best AI stocks on the market. That said, the company is expected to have 15% lower earnings in 2024, but since it has been purchasing its shares back with a buyback yield of 5.1%, it is still an excellent investment option.
8. UiPath, Inc. (PATH)
UiPath is a software developer that works with corporate staff to identify issues in corporate processes, providing solutions and automatic execution of daily tasks. PATH stocks have been much less volatile than the S&P 500, meaning that it is one of the most stable investment options at the moment.
The company launched relatively recently and has no profit records this year. However, considering how it works and the solutions it provides, it is expected to become profitable in 2024, so if you invest right now, you will likely get higher returns within 12 months, as most experts expect earnings of up to 34 cents per share.
9. Cadence Design Systems, Inc. (CDNS)
Cadence Design Systems is one of the leaders in automation software tailored for microchip producers. The company creates various software solutions for machine learning, 3D technology, and artificial intelligence. The CDNS stock has been moving upwards throughout 2023 and is getting closer to the all-time high (ATH) set earlier this year.
The stock was valued at $165 in early 2023 and is now selling for $230, which is almost 40% higher than it was at the same time the previous year. Performance predictions for the next five years predict significant annual growth, with a 15.7% expected EPS growth in the next 12 months. Cadence Design Systems has also stepped up its share repurchasing efforts, reporting a buyback yield of 1.4% in the past year. The trend has been steady since 2014, showing stable growth potential in the future.
Open an account with Upstox.
10. Synopsys, Inc. (SNPS)
Synopsys offers design automation tools for those in the microchip manufacturing sector. The firm presents a compelling blend of recent profit growth, future growth prospects, and a steadily rising stock value.
Of all the stocks mentioned in this list, Synopsys has the most impressive earnings growth over the past five years. A 13.8% EPS growth is forecasted for the upcoming year by analysts. Share repurchases have positively influenced the stock value, with the current buyback yield standing at 1.4%. Like several other stocks in this compilation, SNPS trades at a premium P/E. However, the forward P/E appears more reasonable when factoring in projected future earnings. Remember that investing in stocks always carries risks, and it is important to do your research and consult with a financial advisor before making any investment decisions.
Check out – Top AI Stocks in India to buy in 2023.
Conclusion
The world of AI is experiencing remarkable growth, presenting numerous investment opportunities. Stocks like Synopsys, Nvidia Corporation, Advanced Micro Devices, Inc., and Alphabet, Inc., among others, have shown great promise and have positioned themselves as leaders in the AI space. As AI continues to revolutionize various industries, these companies are well-poised to benefit. However, it is crucial to conduct thorough research and consider your investment goals before making any decisions.
