AI News-In 2024, the financial media is anticipated to be brimming with forecasts about the leading artificial intelligence stocks to invest in. For those looking to streamline their investment decisions without delving deep into exhaustive analyses, the segment focusing on the “5 Best Artificial Intelligence Stocks for 2024” will be the go-to resource
The tech sector experienced a remarkable surge in 2023, with the information technology sector and the NASDAQ 100 index both gaining about 60% – a growth attributed largely to the rapid integration of AI into both business and everyday life. Notably, Nvidia Corporation (NASDAQ:NVDA) saw its shares triple, while Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOGL) enjoyed increases of 80% and 60%, respectively. Financial experts foresee this AI-driven market boom continuing into 2024 as various industries seek to incorporate AI to enhance business operations and product performance. Forbes projects a robust 37.3% compound annual growth rate for the global AI market from 2023 to 2030. Morgan Stanley’s research indicates that the seamless integration of AI in digital products will increasingly draw consumers towards online rather than offline experiences.
James Demmert, Chief Investment Officer at Main Street Research and a 30-year veteran in investing, predicts a significant surge in AI stocks in 2024, which he believes will sustain over the next decade. He attributes this expected growth to the productivity enhancements brought about by AI technologies. Reflecting on the AI market’s potential, UBS described generative AI as a potentially groundbreaking and disruptive force. UBS noted that historically, the introduction of new technologies has substantially benefited a broad spectrum of industries, and generative AI is poised to similarly stimulate the entire economy.
According to the latest insights from financial experts, the most promising artificial intelligence stocks for 2024 are predominantly found within sectors like software, cloud computing, and major technology firms. Leading the pack in this forecast are companies such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Salesforce, Inc. (NYSE:CRM), Advanced Micro Devices, Inc. (NASDAQ:AMD), C3.ai, Inc. (NASDAQ:AI), Palo Alto Networks, Inc. (NASDAQ:PANW), Palantir Technologies Inc. (NYSE:PLTR), and Snowflake Inc. (NASDAQ:SNOW). These firms are highlighted among the top 12 AI stocks earmarked for investment in 2024, as per the latest evaluations by financial media outlets.
In compiling this list of top artificial intelligence stocks to invest in, we conducted an extensive review of recommendations from prominent financial media outlets, including Forbes, The Motley Fool, Business Insider, Morningstar, and Investopedia. Following this, we utilized Hedge Fund’s confidence level in these companies to identify the top twelve consensus selections. Arcot Group aim is to assist readers in making well-informed investment choices by providing insights into both the future prospects and the AI profiles of these stocks.
12. C3.ai, Inc. (NYSE:AI)
AI News- C3.ai, Inc. (NYSE:AI), an enterprise artificial intelligence software firm, has witnessed a significant 160% surge in its share price over the past year. This growth is attributed to the strong performance of its flagship C3 AI platform, which enables the creation, development, and deployment of enterprise AI applications. The company has reported consistent double-digit revenue growth and robust customer engagement, largely driven by the growing demand for generative AI solutions. In the September quarter of 2023, C3.ai’s revenue climbed by 17% year-over-year to reach $73.2 million, while customer engagement soared by 81%.
The company is also focusing on expanding its operations, supported by a substantial cash reserve of $762.3 million. This move towards growth has garnered increased confidence from hedge funds. According to Insider Monkey, the number of hedge fund holders in C3.ai rose to 16 in the third quarter of 2023, up from 15 in the previous period. Notably, Philippe Laffont’s Coatue Management emerged as the largest stakeholder in the company. SOURCE
11. Palantir Technologies Inc. (NYSE:PLTR)
AI News- Palantir Technologies Inc. (NYSE:PLTR) has experienced a notable rise in its stock value, with a more than 150% increase over the past year, echoing the growth trajectory of C3.ai, Inc. (NYSE:AI). This surge is largely due to a heightened demand for artificial intelligence solutions. In its recent performance, Palantir Technologies reported a 17% year-over-year revenue growth in the third quarter. This period also marked the highest profit margins in the company’s 20-year history. Looking ahead, Palantir anticipates its fourth-quarter revenue to reach around $600 million, a notable increase from $558 million in the preceding quarter.
A significant milestone for Palantir has been the tripling of its AI platform users in the third quarter. Additionally, the recent introduction of “Bootcamps” for its AI platform is expected to further boost demand for its AI products.
Scout Investments, Inc, an affiliate of Carillon Tower Advisers, Inc, shed light on the reasons behind Palantir Technologies’ impressive stock rally in their third-quarter investor letter, highlighting the company’s strong performance and promising outlook. SOURCE
10. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
AI News- CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stands out as one of the top twelve artificial intelligence stocks to invest in for 2024, primarily due to the growing popularity of its AI Falcon XDR platform. Over the last year, CrowdStrike’s stock has seen a remarkable 144% increase, a rise that can be attributed to the company’s significant revenue and earnings growth. In the third quarter, CrowdStrike not only reported record operating margins, net income, and free cash flow, but also achieved a $3 billion annual recurring revenue (ARR) milestone, marking a 35% growth year-over-year. The company’s cash flow from operations and free cash flow were notably high, reaching $273 million and $239 million respectively.
TimesSquare Capital Management, a firm specializing in equity investment management, expressed strong confidence in CrowdStrike Holdings in their third-quarter investor letter, emphasizing the company’s robust financial performance and positive growth trajectory. SOURCE
9. Snowflake Inc. (NYSE:SNOW)
AI News- Snowflake Inc. (NYSE:SNOW), recognized as one of the top 12 artificial intelligence stocks to invest in for 2024 by financial media, has demonstrated substantial growth potential. The company, known for its cloud-based data platform, exceeded revenue and earnings forecasts in the third quarter. It reported a 34% increase in revenue year-over-year and a significant 78% rise in adjusted free cash flow. Looking ahead, Snowflake anticipates its full-year revenue to reach approximately $2.6 billion, marking a 27% growth from the previous year. For the following year, the company projects revenue around $3.6 billion, attributing this expected growth to the rising adoption of AI, which is driving demand for its data cloud products. Over the past year, Snowflake’s shares have climbed by 40%, and the sustained strong demand for its offerings suggests this upward trend is likely to continue into 2024.
Hedge fund interest in Snowflake has also seen an uptick. In the third quarter, Snowflake was held in the portfolios of 71 hedge funds, an increase from 65 in the prior quarter, as per data gathered from 900 hedge funds by Insider Monkey. SOURCE
8. Palo Alto Networks, Inc. (NASDAQ:PANW)
AI News- Palo Alto Networks, Inc. (NASDAQ:PANW) is poised to be recognized as one of the premier AI stocks for investment in 2024. Analysts predict that the company will reap substantial benefits from advancements in AI technology, positioning it as a key player in the AI-driven market landscape of the coming year. . The company’s stock has seen a remarkable 110% increase over the past year. In the September quarter, Palo Alto Networks reported a 20% growth in year-over-year revenue. Additionally, its GAAP net income soared to $194.2 million, a substantial increase from $20.0 million in the same period last year. For fiscal 2024, the company is projecting a revenue increase of 17% compared to the previous year.
TimesSquare Capital Management, a firm specializing in equity investment management, highlighted its optimism regarding Palo Alto Networks’ full-year guidance in its third-quarter investor letter. The firm’s statement reflects confidence in Palo Alto Networks’ financial performance and future prospects. SOURCE
7. Oracle Corporation (NYSE:ORCL)
AI News- Oracle Corporation (NYSE:ORCL) has proven to be a solid investment in 2023, with its shares appreciating approximately 30%. Looking ahead to 2024, Oracle is emerging as a leading choice for artificial intelligence investments, particularly as businesses increasingly adopt generative AI to boost productivity and efficiency. By the end of the September quarter, Oracle had secured over $4 billion in contracts for selling its AI training capacity in its Generation 2 cloud, more than doubling the previous year’s figures. The company is also expecting a substantial increase in cloud revenue, projecting a growth of 29% to 31% in the December quarter. In their third-quarter investor letter, Aristotle Atlantic Partners, LLC, an investment management company, expressed optimism about AI being a key growth driver for Oracle Corporation. SOURCE
6. Advanced Micro Devices, Inc. (NASADAQ:AMD)
AI News- Advanced Micro Devices, Inc. (NASADAQ:AMD) has seen its stock soar by 130% in the past year, positioning itself as a pivotal player in the AI chip market. AMD’s unique capability to produce high-powered GPUs essential for data centers has been a key factor in this growth. The company is anticipating a significant surge in AI chip sales, projecting revenues of $2 billion in 2024, which notably exceeds Wall Street’s expectations of $1 billion to $1.5 billion. AMD is intensifying its investments in AI technology to rival Nvidia Corporation (NASDAQ:NVDA), a major competitor leading the global AI market. With the introduction of its latest MI300 processor, AMD is poised to enhance its competitiveness in the field. SOURCE
5. Salesforce, Inc. (NYSE:CRM)
AI News- Salesforce, Inc. (NYSE:CRM) has experienced a notable surge in its stock value, doubling over the past year, primarily driven by the increasing demand for its cloud-based AI solutions. The company is focused on developing an all-encompassing platform that integrates CRM, data, AI, and trust into one unified system. Salesforce reported a significant jump in earnings per share, going from $0.21 to $1.25 over the previous year. Its revenue also saw a healthy increase, rising 11.2% to reach $8.72 billion. Looking forward to 2024, Salesforce is optimistic about maintaining double-digit growth in both revenue and earnings. Additionally, the company is projecting a 30% increase in operating cash flows. Hedge fund confidence in Salesforce remains robust, with the company being a part of 125 hedge fund portfolios by the end of the third quarter, as reported by Insider Monkey. SOURCE
4. NVIDIA Corporation (NASDAQ:NVDA)
AI News- NVIDIA Corporation (NASDAQ:NVDA) has experienced a remarkable surge in its stock, escalating by over 230% in the past year, largely due to the booming demand for its AI technology. NVIDIA’s high-performance AI chips have become essential for data centers, propelling the company’s financial success. In the third quarter, NVIDIA reported a record-breaking revenue of $18 billion, marking a 34% sequential increase and a staggering 209% rise year over year. The data center segment was a significant contributor, with revenue hitting an all-time high of $14.51 billion, up 41% from the previous quarter and 279% from the same period last year. Looking ahead, NVIDIA anticipates its fourth-quarter revenue to reach an unprecedented $20 billion.
Blue Tower Asset Management, an investment management firm, underscored its optimism regarding NVIDIA’s future prospects in their third-quarter investor letter, highlighting the company’s robust financial performance and strong market position. SOURCE
3. Alphabet Inc. (NASDAQ:GOOGL)
AI News- Alphabet Inc. (NASDAQ:GOOGL), with 221 hedge fund holders, is positioning itself as a frontrunner in the artificial intelligence market. The company is actively investing to leverage the growing demand for AI technologies. One of its key developments is the generative AI model, Gemini AI, which competes directly with OpenAI. Additionally, Alphabet is making strategic investments in the AI space, including a potential investment in Character.AI, an emerging AI chatbot startup, and a substantial $2 billion investment in Anthropic, a leading AI firm known for its own chatbot.
Google, a division of Alphabet, also has a dedicated cloud computing arm, further diversifying its AI initiatives. In their third-quarter investor letter, Diamond Hill Capital, an investment management firm, conveyed strong confidence in Alphabet’s advertising and cloud businesses, highlighting the company’s strategic efforts and growth potential in these areas. SOURCE
2. Amazon.com, Inc. (NASDAQ:AMZN)
AI News- Amazon.com, Inc. (NASDAQ:AMZN), supported by 286 hedge fund holders, is actively channeling significant investments into artificial intelligence to enhance its market presence. A notable move in this direction is its recent $4 billion investment in Anthropic, an AI firm that has also attracted investment from Alphabet. This partnership involves Anthropic utilizing Amazon Web Services (AWS) for its key workloads. Furthermore, Amazon has been integrating AI technology across its range of products, including the widely recognized Alexa voice assistant.
In their third-quarter investor letter, Sydney-based investment manager Lakehouse Capital mentioned Amazon, emphasizing the company’s strategic AI initiatives and its potential impact on the market. This highlights Amazon’s continued focus on expanding its AI capabilities and its influence in the AI sector. SOURCE
1. Microsoft Corporation (NASDAQ:MSFT)
AI News- For 2024, Microsoft Corporation (NASDAQ:MSFT) is predicted to lead the artificial intelligence industry, supported by a significant base of 306 hedge fund holders. It’s anticipated to be the top choice among the best AI stocks prediction as projected by financial media analyses. Microsoft’s commitment to AI is underscored by its substantial investment of nearly $13 billion in OpenAI, known for developing the ChatGPT model. In 2023, the company expanded its AI investments to include startups like Inflection AI and Builder.ai. Microsoft anticipates generating around $10 billion from its collaborations with OpenAI and other AI entities. Over the last year, Microsoft’s stock has witnessed an approximate 55% increase, buoyed by impressive double-digit growth in revenue and earnings.
Microsoft’s appeal among investors is reflected in its popularity with hedge funds. According to data from Insider Monkey, which tracks over 900 hedge funds, Microsoft was featured in 306 hedge fund portfolios by the end of the third quarter, marking an increase from 300 in the previous period. This underscores the widespread confidence in Microsoft’s AI-driven growth strategy and future potential. SOURCE
Conclusion
The landscape of artificial intelligence investment is rapidly evolving, with leading tech giants and emerging players alike positioning themselves at the forefront of this technological revolution. The financial media’s spotlight on these top 12 AI stocks for 2024 underscores a broader industry trend: AI’s growing impact on business models, revenue streams, and market dynamics. Companies like Microsoft, Amazon, and Alphabet are not only reshaping the tech sector with their AI-driven innovations but are also setting new standards for investment potential in this field. As these firms continue to break new ground, especially in generative AI, cloud computing, and data center operations, their stock performance reflects the increasing investor confidence in AI as a critical driver of future growth. This alignment of technological advancement with market viability presents a compelling narrative for investors looking to capitalize on the next wave of tech evolution, positioning AI as a pivotal sector for investment in the coming years.
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