For investors and traders, the right time to dive into AI stocks might be now. By investing in AI stocks, you're not just betting on a company's growth, but on the advancement of technology that could redefine industries.
Artificial Intelligence isn't just science fiction anymore. The global AI market is projected to grow to over $300 billion in 2024.
With that said, it's essential to conduct thorough due diligence and consider factors like competitive advantage, market potential, and the regulatory environment before jumping in.
Below, you'll learn about 10 AI stocks that could make moves in 2024 and why these assets may be worth your attention (and capital).
What are AI stocks?
AI stocks refer to stocks of companies that are involved in the development, application, or utilisation of artificial intelligence (AI) technology. These stocks are typically associated with companies that specialise in machine learning, deep learning, natural language processing, computer vision, and other AI-related fields. Artificial intelligence stocks have gained significant attention and popularity due to the rapid advancements and potential growth opportunities in the AI industry. Investors and traders in 2024 are keeping a close eye on these stocks as they offer the potential for substantial returns and are considered to be at the forefront of technological innovation. However, it’s important to be cautious and use proper risk management amid the hype and excitement in the space. So which are the top AI stocks worth considering in 2024?
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10 AI stocks to consider in 2024
- NVIDIA Corporation (NVDA.US): NVIDIA is no stranger to the world of AI and is well-poised to foster growth in 2024. Their graphics processing units (GPUs) have been at the core of AI, with applications in data centres, autonomous vehicles, and more. In 2024, they continue to power the most advanced AI platforms, setting the bar high for computing capabilities within the AI space. The recent acquisition of Arm Holdings promises to extend NVIDIA's AI architecture into a broader spectrum of applications, including smartphones, IoT systems, and edge computing devices. With a comprehensive and synergistic ecosystem, NVIDIA stands as a formidable AI stock in 2024 and beyond.
- CrowdStrike Holdings (CRWD): Cybersecurity is critical, especially as AI adoption increases, making CRWD an AI stock with exponential potential. As cyber threats evolve and become more sophisticated, CrowdStrike's AI-powered platform is a necessity for businesses worldwide. Their proactive approach and cloud-native architecture make it a preferred choice for enterprises scrambling to secure their digital infrastructure. The company's AI capabilities are not only robust but also adaptive, constantly learning from a massive dataset of threats to protect its users. In 2024, as the cyber threat landscape continues to intensify, investors can expect CrowdStrike's stock to soar.
- Arista Networks (ANET): Arista Networks has been a pacesetter in cloud networking and AI-driven solutions, with a sharp focus on integrating AI into the fabric of their products. As data centres and cloud services become more intricate, AI automation is a game-changer, offering intuitive operations and real-time analytics that drive network performance and security. ANET's portfolio enhancements in AI-driven operations and security, like their CloudVision platform, are gaining significant traction. As demand for cloud and network solutions surge, Arista Networks is an AI stock to watch for impressive growth in 2024.
- Microsoft Corporation (MSFT.US): Microsoft's commitment to AI technologies is imprinted across their suite of products and services, from Azure's AI infrastructure to the widespread adoption of machine learning in its software offerings. In 2024, they're pushing the boundaries even further, with AI being an intrinsic part of their business strategy. With a focus on democratising AI, Microsoft ensures that even non-technical users can leverage its power. Their ongoing investments in AI research, development, and ethical considerations cement MSFT's position as an AI stock with substantial growth potential.
- Salesforce.com (CRM.US): Salesforce's AI integration brings intelligent customer relationship management to the forefront of business innovation. Their AI platform, Einstein, embedded within the Salesforce ecosystem, empowers companies with predictive analytics, personalised recommendations, and automation, redefining the customer experience. In 2024, with a robust cloud-based architecture and a burgeoning AI-centric product line, Salesforce is poised to become an even more integral part of the digital transformation narrative, making it a strong contender among AI stocks.
- Amazon.com, Inc. (AMZN.US): Amazon's significant investment in AI, particularly in its e-commerce and cloud services, makes it a strategic choice for investors looking at AI stocks. With AI technologies fueling their fulfilment centres, recommendation systems, and voice-assisted devices, Amazon's customer-centric approach stands to benefit greatly from AI integration. In addition, their cloud computing arm, Amazon Web Services (AWS), offers AI and machine learning services, allowing businesses to adopt these technologies without the need for extensive in-house resources. As they continue to innovate and expand their AI capabilities, Amazon remains an AI stock likely to skyrocket in 2024.
- Alphabet Inc. (GOOGL.US): Alphabet, the parent company of Google, is synonymous with AI, with its search engines, autonomous driving ventures, and AI research through DeepMind. Google's unparalleled access to vast amounts of data allows them to develop and deploy AI models of immense complexity and precision, offering them an edge in the AI race. With AI adoption being widespread and a growing conversation around AI ethics and governance, Alphabet's diversified AI play makes it a stock with growth potential in 2024 and relevance in the long term.
- International Business Machines Corporation (IBM.US): IBM, a stalwart in the computing industry, is undergoing a significant transformation with AI at the heart of its strategy. Watson, IBM's AI platform, is a prime example of their commitment to AI, with applications spanning healthcare, financial services, and beyond. IBM's focus on hybrid cloud and the integration of AI into enterprise solutions are positioning it for substantial growth. As the global economy looks toward digital transformation and efficiencies, IBM's expertise and offerings make it an AI stock with upward mobility.
- Intel Corporation (INTC.US): Intel's AI stock story in 2024 is an exciting one, especially considering the company's resurgence in AI innovation. Intel AI technologies are revolutionising the industry through inference accelerators, learning-based data analytics, and more, making AI an intrinsic part of its semiconductor strategy. With the demand for AI chips and processors skyrocketing, Intel's advancements in this space are primed to yield significant returns. Their collaborations with industry leaders and startups further solidify their position in the AI ecosystem, making INTC a stock to watch in the AI realm.
- Baidu (BIDU.US): As one of the most influential AI and internet companies in the world, Baidu’s stocks are a testament to its AI prowess. Its reach spans autonomous driving technology, facial recognition, and even smart speakers. With deep investments in AI R&D, Baidu is a key player in this list that investors will want to monitor closely throughout 2024.
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Why should investors keep AI stocks on their radar?
Investors should keep artificial intelligence stocks on their radar for several compelling reasons:
- Potential growth: The AI industry is experiencing great growth, with AI applications infiltrating various sectors, including healthcare, finance, and e-commerce. As AI continues to evolve, it offers enormous potential for financial gains.
- Innovation and efficiency: AI enhances innovation and operational efficiency, which could lead to increased profitability for companies. It enables automation, data analysis, and predictive capabilities, ultimately reducing costs and improving productivity.
- Disruption and transformation: AI has the power to disrupt traditional industries and drive transformation. Companies that effectively incorporate AI into their operations could gain a competitive edge, making them attractive investments.
- Scalability: AI solutions are scalable, making them accessible to both large corporations and smaller startups. This scalability ensures that artificial intelligence stocks offer diverse investment opportunities.
- Long-term prospects: AI is not a short-term trend; it's a fundamental technological shift. Investors who adopt a long-term perspective could benefit from the sustained growth potential in the AI sector.
- Diversification: Adding AI stocks to a portfolio could diversify risk. The sector spans multiple industries, providing stability in times of market volatility.
- Global reach: AI's impact is global, providing investment opportunities in various geographic regions.
Potential advancements in 2024
In 2024, the potential advancements in AI are vast and exciting. One area of focus will be the continued development of autonomous vehicles, with advancements in computer vision, deep learning, and sensor technology. This will bring us closer to a future where self-driving cars become more prevalent on the roads. Additionally, natural language processing and conversational AI will see significant progress, allowing for more seamless interactions between humans and AI-powered virtual assistants. AI-powered healthcare solutions will also continue to evolve, enabling more accurate diagnosis, personalised treatment plans, and improved patient outcomes. Overall, 2024 holds immense potential for AI to drive innovation and reshape various industries.
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FAQs
1. What are AI stocks?
AI stocks refer to shares in companies that are heavily involved in the development and application of artificial intelligence technologies. These can include tech giants, startups, or established companies in various sectors that are integrating AI into their operations.
2. Why should I consider investing in AI stocks?
Investing in AI stocks offers the potential for high returns as the demand for AI technology continues to grow across industries globally. The AI market is predicted to experience significant growth, making it a potentially promising sector for investment.
3. What are some examples of AI stocks?
Some examples of AI stocks include tech giants like Alphabet (Google's parent company), Amazon, and Microsoft, which are leading players in AI research and development. Other examples include NVIDIA and Advanced Micro Devices (AMD) which produce the powerful GPUs often used in AI computations.
4. How can I start investing in AI stocks?
To start investing in AI stocks, you will need to open a brokerage account or use a CFD broker like Skilling, where you speculate on the price of an underlying asset without owning it. You can then research AI companies, choose the ones you want to invest in.
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5. What are the risks associated with investing in AI stocks?
Like any investment, AI stocks come with risks. These can include the volatility of the tech market, regulatory changes, and the fact that many AI applications are still in their early stages of development. It's important to do thorough research and consider seeking advice from a financial advisor.
6. What should I look for in an AI stock?
When evaluating AI stocks, investors should consider factors like the company's growth prospects, its position and reputation in the AI field, its financial health, and the potential impact of its AI technology on its overall business.
7. Are AI stocks likely to grow in the future?
While no one can predict the future with certainty, many industry experts believe that as AI technology continues to advance and be adopted across a wide range of sectors, companies involved in AI are well-positioned for growth. However, as with any investment, potential future growth doesn't guarantee success, and it's important to do your own research.
