Best Artificial Intelligence stocks for investment in 2024. Artificial intelligence (AI) is growing at an astonishing pace and as it continues unveiling new promises for the future, AI is also becoming an attractive investment proposition.
AI stocks may be excellent long-term investments – The global artificial intelligence industry is expected to grow from $59.6 billion in 2024 to $422 billion by 2028, according to Zion Market Research. Virtually every industry is being disrupted by AI, automation and robotics. Whether it be machine learning, smart applications and appliances, digital assistants, or autonomous vehicles, companies that aren’t investing in AI products and services risk becoming obsolete.
Some companies also profit directly from AI by selling hardware, software, services, or expertise that the technology needs. These are true artificial intelligence stocks. With that in mind, here are the best artificial intelligence stocks to keep track of in 2024.
Table of Contents
Nvidia Corp. (NVDA)
Graphics chip mammoth NVIDIA Corporation ranks at the top of the best artificial intelligence stocks in 2024. The reason why Nvidia is a well-regarded company in the industry comes down to its high-end chips that power advanced artificial intelligence applications, including one of the world’s leading supercomputers, Leonardo, as well as its very own upcoming AI supercomputer Eos.
The company is not only a leader in providing chips with massive processing power, Nvidia is equally a major player in semiconductors that are needed to power a number of key technologies like cloud computing, data centres, AI and machine learning capabilities, gaming and, of course, the metaverse. In all, the chip company serves five primary markets—gaming, data centre, professional visualization, automotive, original equipment manufacturer (OEM)
At its annual GTC conference, Nvidia unveiled an extensive range of AI-focused enterprise products that include new-generation chips with a processing power of as much as nine times higher than their predecessors. Nvidia’s stock hit an all-time high last year as its gaming and data centre GPU business fuelled growth throughout the Covid-19 pandemic.
The end-end chipmaker has also seen a whopping 380% rally over the past three years, although analysts warn that that cycle might be cooling off. Over the past year, Nvidia’s shares have provided a total return of 73.1%, well above the S&P 500’s total return of 13.8%.
Alphabet Inc. (GOOG, GOOGL)
Google and YouTube parent company Alphabet is currently the world’s largest AI company, focusing on a wide range of global online services. The California-based tech giant owns operations including Youtube, Google Cloud, Google Play, Android, Google Pay, and Waze, among many others.
More importantly, Alphabet is a leading name in the artificial intelligence sphere, developing a diverse range of AI services and products, including a self-driving company named Waymo, AI voice interface Google Duplex and being the parent company of DeepMind Technologies, which is dedicated to developing general-purpose artificial intelligence technology (AGI).
In addition, artificial intelligence is deeply integrated into many facets of Alphabet’s business practices, from content promotion to ad pricing, and much more.
Alphabet has managed to become one of the world’s largest technology conglomerates, with a market capitalization of $1.75 trillion as of March 2024. The company also posted a net income of $76 billion on revenue of $257.6 billion for 2024.
Amazon.com Inc. (AMZN)
Another key player in AI is Amazon. The e-commerce giant makes extensive use of artificial intelligence across its company-wide operations. This includes the algorithms it runs for e-commerce searches, target advertising and Amazon Web Services (AWS). And there is, of course, the widely popular virtual assistant Alexa which is used by 40 million people in the US alone. Amazon might be better known for its e-commerce services but it’s quickly becoming a name to be reckoned with when it comes to AI. Besides the features already mentioned, Amazon also offers a long list of AI applications to its clients, mostly through its AWS, including voice recognition, chatbots and speech-to-text tools that use AI to help developers create their own services.
Besides the features already mentioned, Amazon also offers a long list of AI applications to its clients, mostly through its AWS, including voice recognition, chatbots and speech-to-text tools that use AI to help developers create their own services. There are many other projects in which Amazon uses AI, including Amazon’s Prime Air delivery drones and fully automated grocery stores – Amazon Fresh.
Earlier, Amazon’s founder and former CEO Jeff Bezos had said about the technology: ”Much of what we do with machine learning happens beneath the surface. Machine learning drives our algorithms for demand forecasting, product search ranking, product and deal recommendations, merchandising placements, fraud detection, translations, and much more. Though less visible, much of the impact of machine learning will be of this type — quietly but meaningfully improving core operations.”
While Amazon’s Q1 2024 revenue report was below estimates (it was the first quarter that the tech giant has posted a net loss in at least four years), Amazon Web Services (AWS) revenue did exceed consensus estimates, seeing a 37% year-over-year (YOY) increase.
Meta Platforms Inc. (FB)
Meta (formerly Facebook) has started to put increased focus and investment on its augmented- and virtual reality products and services as part of its plan to build the metaverse. As part of this push, Meta has also doubled down on AI technology, building the AI Research SuperCluster (RSC), which was hailed by the tech giant as the world’s fastest AI Supercomputer. Meta uses artificial intelligence to power things such as advertising algorithms and news feeds.
As of 2024, the company breaks down its financial results into two segments: Family of Apps (FoA), which includes Meta’s main social media platform, Facebook, as well as Instagram, Messenger, WhatsApp, and other services, and Reality Labs (RL), which includes the company’s augmented- and virtual-reality products and services like the Quest VR headsets. Meta also recently announced it would be opening its first physical store – the Meta Store.
Meta reported year-over-year growth of just 7% in the first quarter of 2024, the slowest pace of expansion in Facebook’s 10-year history as a public company.
In its most recent earnings report last week, Meta forecast a potential year-over-year revenue drop in the second quarter. Despite the recent tumble, analysts still put Meta at the top of AI stocks to keep an eye out for in 2024.
International Business Machines Corp. (IBM)
IBM has a decades-long worth of research and development of AI applications, most notably its AI supercomputer Watson, which is currently a major competitor alongside other AI companies like Google, Microsoft and Amazon. As one of the best tech stocks to watch this year, the cloud and software firm works with top companies spanning a number of industries, from finance to healthcare law and academia, to improve software applications and data analytics. IBM also offers consulting and hybrid cloud infrastructure to clients.
In recent years, the company has placed great focus on becoming a leading provider in the hybrid cloud segment and AI which can be beneficial for companies looking to digitally transform their businesses. IBM reported a net income of $5.7 billion at the end of 2024, up 2.7% compared to the previous year. IBM is an AI stock you really want to keep on your list of potential investments in 2024.
Microsoft Corp. (MSFT)
No tech stock market can be complete without mentioning software giant Microsoft Corporation as it’s undoubtedly one of the top AI stocks in 2024. Continuing a trend seen in recent years, Microsoft has continued placing significant investments in AI and cloud computing services under the Azure platform. Microsoft’s cloud computing network was built with the objective of training AI models to produce complex AI infrastructures for developers and organizations. The company also runs Context IQ, an AI application targeted at Microsoft employees that helps search, predict and create suggestions. Microsoft’s third quarter 2024 financial results saw the company posting a revenue of $49.4 billion and a net income of $16.7 billion, beating expectations across the board.
Serial entrepreneur Peter Thiel’s Palantir is a software development and data-mining firm that specializes in leveraging big data and AI to provide insights and analytics for a wide list of clients The company’s primary business centres around secure data analytics software and management to the government and private organizations. Palantir’s Gotham platform collects and mines data for government agencies while Foundry provides similar services for large enterprise clients. Palantir also runs the Apollo, which has been crucial in using artificial intelligence in space exploration. Palantir Technologies reported fourth-quarter revenue that rose 41% to $1.54 billion at the end of 2024. Ridding the AI boom to the fullest extent, Palantir can be a promising investment when it comes to AI systems and AI data applications.
Like Nvidia, Intel is a leader in the graphics processing units and CPU industry. The company also develops systems for cloud servers, self-driving cars, and AI technology. In particular, Intel has invested in AI hardware and software, including the Nervana processor, which is a deep learning processor. The chipmaker also has another AI processor dedicated to developing neural networks and visual recognition – Movidius. All in all, the company offers clients an AI developer ecosystem that provides end-to-end software resources including optimized tools and frameworks for data analytics, traditional machine learning, and deep learning. Intel beat on the top and bottom lines for the first quarter of 2024, posting $18.35 billion in revenue. For all these reasons, Intel is among the top stocks to buy this year.
C3.ai, Inc. (AI)
C3.ai is an enterprise AI software provider, which develops artificial intelligence (AI) algorithms to help large organizations optimize and streamline operations. As a leader in the AI industry, C3.ai’s recent contracts include a five-year deal with the U.S. Department of Defense worth $500 million. In 2024, the company has announced an expansion of AI-based services that extend to finance, healthcare, agriculture, life sciences, manufacturing, and more.
The company’s tools have been recognised as some of the best for companies to become more efficient across the cycle of operations, including chain management, energy efficiency, and customer engagement. As a younger company compared to others on this list C3.ai is yet to turn a profit, but given its best-in-class offerings that have been adopted across many industries and the AI solutions it has developed, this is still one of the stocks to consider this year.
SentinelOne, Inc. (S)
Last but not least, we are highlighting SentinelOne as the company is a leader in the AI software market. In particular, the firm offers both on-premise and cloud-native cybersecurity to organizations, which puts it ahead of competitors with just one of those offerings like CrowdStrike. By making extensive use of AI, SentinelOne can reduce its dependence on human analysis and active internet connections to activate its solutions, while leaving powerful artificial intelligence algorithms and AI technology more broadly to stay ahead in the market. The approach appears to be paying off as the company reported a 120% jump in revenue to $204.8 million at the end of the first quarter of 2024.
For more such interesting article like this, app/softwares, games, Gadget Reviews, comparisons, troubleshooting guides, listicles, and tips & tricks related to Windows, Android, iOS, and macOS, follow us on Facebook, Instagram, Twitter, YouTube, and Pinterest.
Advertising statement: The external jump links (including but not limited to hyperlinks, QR codes, passwords, etc.) contained in the article are used to convey more information and save selection time. The results are for reference only. All Naijatechnews articles include this statement.