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Best AI Stocks you Should Know

Best AI Stocks you Should Know

AI technologies are revolutionizing many sectors and offering numerous investment opportunities. Since the launch of ChatGPT, AI stocks are once again particularly on the rise. Some have even seen their prices soar. 

The ChatGPT conversational robot has generated real excitement in recent months because it could be a revolutionary technological advance, comparable to the emergence of the Internet at the time. 

ChatGPT was developed by OpenAI, a company co-created by Elon Musk in 2015. The chatbot uses artificial intelligence to answer user questions.

Discover in this article everything you need to know to invest in AI: explanations, a list of ten actions of companies active in the development of artificial intelligence, and more particularly in technological innovation. They are therefore likely to perform well this year and benefit from the boom in artificial intelligence.

So, what exactly is artificial intelligence?

Artificial intelligence (AI) is an umbrella term for technologies that enable machines to understand, understand, decide, act and learn, either autonomously or with the help of humans . Machine learning is a form of artificial intelligence.

Artificial intelligence stocks to follow closely in 2024

We created our list of the top artificial intelligence stocks to buy, as recommended by analysts, by selecting from the Invesco AI and Next Gen Software ETF holdings. We ranked these companies based on their average analyst share price target upside. This approach led us to identify the top AI stocks.

Additionally, we included hedge fund sentiment in our analysis of these leading AI stocks. Over the past decade, hedge funds’ top 10 consensus stock picks have outperformed the S&P 500 Index by over 140 percentage points. 

This significant outperformance highlights the importance of considering hedge fund sentiment, an often overlooked indicator.

Discover our top 10 artificial intelligence stocks to watch in 2024 below.

Top 10 AI stocks in 2024

Apple Inc. $2,706.44 $172.07
NVIDIA Corporation $716.05 $289.53 
IBM Corp. (International Business Machines) $112.02 $123.36 IBM US4592001014
Intuitive Surgical Inc. $107.94 $308.05
Illumina $32.39 $204.85 ILMN 
Crowdstrike Holdings Inc $30.22 $135.55 CRWD 
The Trade Desk Inc 28.46 63.98 USD TTD
Splunk Inc $14.69 $88.75 SPLK 
Zebra Technologies Corp. $13.92 $270.70 ZBRA 
Twilio Inc. $8.26 $47.38 TWLO 

A selection among the top AI stocks

The performance of the following three stocks is particularly likely to attract many investors:

Nvidia: high-performance processors serving artificial intelligence

The American company Nvidia is one of the pioneers in the field of graphics cards (GPU). The company is today the world leader in computing and artificial intelligence, notably with its high-performance chips. 

In short, Nvidia offers solutions for data analysis, machine learning, conversational artificial intelligence and even advanced large language models.

NVIDIA expanded their partnership with Openai, a new advanced AI model more powerful than ChatGPT that connects 10 million NVIDIA AI GPUs.

NVIDIA’s growth rates have been impressive in recent years. For the entire fiscal year 2024, analysts expect average revenue growth of +58%, to reach $42.7 billion and net profit of $15.28 billion.

During the period between 2015 and 2021, Nvidia’s stock price increased by more than 6,800%, from less than $5 to $346.47. 

A correction followed in 2022, bottoming at USD 108 in the fall. What followed was another price rally in 2023. 

Today, Nvidia stock is certainly far from cheap, but it is a very profitable market leader that sets the tone with its technologically superior chips, and not just in the field of artificial intelligence. For those who want to invest for the long term, it is best to wait for a return to the moving average zone.

CrowdStrike: Intelligent protection against hacking and malware

CrowdStrike is a company specializing in cybersecurity services. CrowdStrike’s cloud computing and security solution uses cutting-edge artificial intelligence to detect malware on laptops, smartphones, tablets and other devices used to access corporate networks. 

Thanks to CrowdStrike’s various solutions, customers no longer have to worry about malware and can therefore concentrate on more important tasks.

When it comes to revenue, CrowdStrike saw a strong growth rate at the start of the decade. For 2023/24, a slight slowdown in growth is expected. 

According to analysts, revenue is expected to increase by +34% to reach $3 billion, while earnings per share are expected to increase by +51% to reach $2.33. For next year, market experts predict revenue of $3.9 billion (+29%) and earnings of $3.01 (+29%) per share.

CrowdStrike stock debuted in 2019 at $34 per share. The price then climbed to $298 in the fall of 2021, before falling like many technology stocks. But, at the start of 2023, a new moderate uptrend has formed.

The Trade Desk: effective online advertising thanks to artificial intelligence

Digital advertising has been a booming market for several years now and growth rates are often in the double digits. The Trade Desk offers automated tools that allow businesses to purchase digital advertising and optimize their returns. 

Trade Desk’s transparent AI applications identify the best channels for customers to buy and serve ads on. Ads are optimized based on target group, location, time of day, weather, ad format, current events and other factors, thereby constantly maximizing the success rate. 

The company is particularly strong in advertising in streaming and online television, one of the few areas in which Alphabet (Google) does not have a dominant position.

With its intelligent advertising platform, the company achieves high growth rates. =For 2023, the market consensus forecasts revenue of nearly $1.9 billion (+32%) and earnings per share of $1.12 (+8%). In 2024, revenue of $2.34 billion (+24%) is expected to generate earnings of $1.43 per share (+28%).

Artificial intelligence is becoming part of our daily lives

In recent years, artificial intelligence has experienced rapid development thanks to increasingly cheaper and more powerful processors but also thanks to the ultra-fast analysis of patterns in large quantities of data (big data). .

With virtual digital assistants such as Amazon’s Alexa, Apple’s Siri or Microsoft’s Cortana, AI entered our homes long before GPT chat. 

But AI is also already integrated into less visible applications, such as machine-learning translation and voice recognition programs or fraud detection software, which provide valuable services. In short, artificial intelligence is no longer science fiction, but is an integral part of daily life and economic activity.

Investing in AI stocks – In Conclusion

Artificial intelligence is one of the booming sectors of today and tomorrow. AI is entering an increasing number of areas of life. Computers making increasingly relevant decisions support processes and enable less workload and greater efficiency in an increasing number of areas of business and daily life. 

As the AI trend is still in its infancy, despite the boom of recent years, several of the AI companies featured are expected to experience tremendous growth over the next five to ten years. 

However, significant overheating occurred in 2021. The correction which affected all stocks in the ai industry somehow helped to calm things down and restore some order. Future winners are likely to include AI stocks that remained relatively stable during the correction or recovered quickly.

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