As artificial intelligence (AI) continues to dominate headlines, investors are keeping a close eye on the market for the next big opportunity. While some AI stocks have proven to be all hype and no substance, there are still lucrative options available for those who can differentiate between the winners and the losers.
Three AI stocks that are currently experiencing a slight price dip but show promising potential for growth in 2024 are:
1. SMCI: Super Micro Computer Inc. recently reported record highs in FY 23, with a 37% year-over-year increase in revenue, reaching $7.12 billion. The company’s President and CEO, Charles Liang, attributes this success to the unprecedented demand for AI and other advanced applications. Despite a recent 11% price dip in QTD, SMCI stock is up nearly 210% YTD, presenting an opportunity for investors to buy shares before a potential bull run.
2. SoundHound AI: SoundHound offers AI-powered voice and speech recognition technology through its Houndify platform. The company saw a commendable 47% year-over-year increase in revenue in FY 23, reaching $45.9 million. While still operating at a net loss, SoundHound is confident in its growth prospects for 2024, with a mid-point revenue outlook of $70 million. With SOUN stock currently down 13% QTD but up 143% YTD, investors might consider entering the market before the stock resumes its upward trajectory.
3. Palantir Technologies: Palantir specializes in counter-terrorist and investigative software that utilizes AI for pattern identification. The company reported a 17% year-over-year revenue increase in FY 23, reaching $2.23 billion. With a recent turnaround in earnings and strong growth projections for 2024, Palantir’s stock (PLTR) is down 8% QTD but up 26% YTD, indicating a potential buying opportunity for investors seeking exposure to the AI market.
Overall, these three AI stocks show promise for investors looking to capitalize on the growing demand for artificial intelligence technology. Despite recent price dips, the underlying fundamentals and growth prospects of these companies suggest that they could be top performers in 2024.
