The demand for artificial intelligence (AI) stocks has surged in 2024, with key players like Nvidia, Palantir Technologies, and Micron Technology witnessing substantial jumps in their stock prices. Nvidia has seen a remarkable 154% increase, followed by Palantir Technologies at 58% and Micron Technology at 54% in the first half of the year. In comparison, the Nasdaq-100 Technology Sector index has only gone up by 16%.
Investments in AI hardware continue to remain robust in 2024, reflecting in the strong growth reported by Nvidia and Micron Technology in their recent quarterly results. Nvidia’s revenue for the first quarter of fiscal 2025 saw a 262% year-over-year increase, while Micron’s top line grew by 81% in the third quarter of fiscal 2024. Both companies are optimistic about sustaining this growth momentum.
Nvidia is dominating the AI graphics processing unit market with a 94% share, projecting $87 billion in AI chip sales for 2024. On the other hand, Micron Technology is gaining ground in memory chip spending, with a forecasted 66% increase in sales in 2024. The demand for AI-specific high-bandwidth memory (HBM) indicates significant revenue growth potential for Micron.
Palantir Technologies, focusing on AI software, reported a 21% year-over-year revenue increase in the first quarter of 2024. The company’s Artificial Intelligence Platform (AIP) software is gaining traction among commercial customers, leading to a promising future revenue pipeline. Analysts project an 85% annual bottom line growth rate for Palantir over the next five years.
Overall, the outlook for these AI stocks remains positive due to the increasing demand for AI technologies across various sectors. Nvidia and Micron Technology are poised for sustained growth in the semiconductor industry, while Palantir Technologies is well-positioned to capitalize on the expanding AI software market. Investors may find these top AI stocks attractive for potential growth opportunities in the second half of 2024 and beyond.
