The year 2023 witnessed a significant boom in the artificial intelligence (AI) stocks market, driven by the emergence of generative AI and large language models that brought AI into the mainstream. The growth experienced in 2023 shows no signs of slowing down in 2024, which is great news for investors looking to capitalize on the best AI stocks available.
Despite concerns that the AI hype might be overblown, there are still plenty of reasons to remain bullish. Artificial intelligence has only just begun to change our lives, and this presents a solid catalyst for the best AI stocks in the market.
In this article, we will explore seven of the top AI stocks that have the potential to double in value this year.
1. Nvidia (NASDAQ:NVDA): Nvidia is undoubtedly one of the best AI stocks to own. Despite currently trading at around $625, with a target price of $1,100, its potential for growth is evident. Nvidia consistently outperformed analyst estimates throughout 2023, recording extraordinary earnings beats in each of the last three quarters. With its dominant supply chain in the AI industry and a constant struggle to fulfill the high demand for its AI chips, Nvidia is positioned for significant growth in 2024.
2. Advanced Micro Devices (NASDAQ:AMD): As Nvidia’s primary competitor in the AI chips market, AMD is poised to benefit from the booming demand across enterprises. With Microsoft and Meta Platforms already shifting their chip provider to AMD, its M1 mi300x chips have the potential to challenge NVIDIA’s dominance. CEO Lisa Su sees the opportunity in AI data centers reaching $400 billion by 2027, which could result in a substantial increase in AMD’s price.
3. UiPath (NYSE:PATH): UiPath offers software that helps enterprises streamline repetitive tasks and improve workplace productivity. The company’s fundamentals are constantly improving as the demand for its technology grows. With generative AI expected to play a significant role in UiPath’s future growth, it is poised to challenge other software firms, including the likes of Salesforce. For investors seeking automation and efficiency increases, UiPath is a name worth considering in 2024 and beyond.
4. SoundHound AI (NASDAQ:SOUN): SoundHound AI is a conversational AI stock that specializes in voice recognition tools. It has wide applications across industries such as automobiles, fast food, and banking. Having partnered with various firms, including Stellantis in the automobile industry, SoundHound AI has great potential. Its current share price of $1.75 and a target price range of $3.60-$5 make it an intriguing investment opportunity in the conversational AI space.
5. Palantir (NYSE:PLTR): While some in the investment world are skeptical about Palantir’s AI capabilities, the company continues to deliver quarters of profitability. Its AI tools are extensively used by the U.S. military and government, which serves as a strong catalyst for its future growth. Despite the skepticism, many investors believe in Palantir’s potential and are closely watching its performance in 2024.
6. Microsoft (NASDAQ:MSFT): Microsoft has emerged as one of the leading AI firms globally, with its share price soaring from $250 to $400 over the past year. Forecasts suggest that it could reach $600 in 2024. Microsoft’s implementation of AI throughout its tech stack, coupled with its strong presence in cloud computing through Azure Cloud, positions it for continued success. The marriage between cloud computing and AI is of great interest to investors, and Microsoft’s early investment in OpenAI further solidifies its position.
7. Baidu (NASDAQ:BIDU): As China’s leading internet search provider, Baidu draws comparisons to Google. Both companies heavily invest in AI and are expected to see their share prices rise as a result. Baidu’s AI investment has already yielded positive results, with higher-than-expected sales and earnings in the third quarter of 2023. The company plans to continue investing in generative AI to enhance its artificial intelligence platform’s capabilities. Despite negative sentiment surrounding Chinese stocks, Baidu presents a strong contrarian opportunity.
In conclusion, the AI stocks market is set for another year of growth in 2024. With companies like Nvidia, AMD, UiPath, SoundHound AI, Palantir, Microsoft, and Baidu at the forefront, investors have plenty of options to consider. However, it is essential to conduct thorough research and evaluate each investment opportunity carefully before making any decisions.
