These companies aren’t the best known but are well-positioned to soar in 2024.
With 2023 almost behind us, investors are looking ahead to 2024. There have been some exciting trends that have emerged this year. But most people will remember it as the year artificial intelligence (AI) took over. Since OpenAI launched ChatGPT in November 2022, this revolutionary technology has taken off astoundingly, transforming many different industries. It also minted a new class of stock market winners, taking previously unknown companies to new heights. Chipmaker Nvidia (NASDAQ:NVDA) made history when it reached a trillion-dollar market cap in 2023. Now, as investors look toward a new year, they ponder an important question. What will be the trillion-dollar AI stocks of 2024?
One expert on both AI and growth stocks sees great days ahead for the sector. InvestorPlace senior analyst Luke Lango has been bullish on AI stocks since before ChatGPT took them to new heights. As he sees it, the rise of AI could be as transformational to the U.S. economy as the evolution of the internet proved to be. The hunt for the next trillion-dollar AI stocks isn’t as cut and dry as simply identifying the best companies, though. Lango predicts that each sub-sector of the AI industry will have its time to shine in the 2020s AI Boom.
While Nvidia turned heads with its impressive growth last year, companies are starting to move away from using Nvidia’s chips, Lango noted. This shift creates an opportunity for new companies to thrive. Among the potential winners, Lango highlights British chipmaker and licensing firm Arm Holdings (NASDAQ:ARM). With opportunities to license products to tech giants and a list of high-profile clients, Arm is well-positioned to benefit. Lango also sees Taiwan Semiconductor Manufacturing Company (NYSE:TSM) as a likely winner due to its role as a foundry player. Companies like TSMC not only create the necessary infrastructure for others to build their own chips, but they also design the technology around it, allowing others to leverage their expertise.
Lango is also highly bullish on the electronic design automation (EDA) software market. With companies like Meta and Amazon joining the game, he predicts EDA software companies will have a massive customer base expansion and substantial revenue growth in the coming years. Synopsys (NASDAQ:SNPS) and Cadence Design Systems (NASDAQ:CDNS) are his top picks for this field, as they currently dominate their market shares.
While these companies are not the only potential trillion-dollar AI innovators, Lango believes they are the best positioned to benefit from the upcoming trends in 2024. Investors should keep a close eye on these stocks as the new year unfolds.
In the rapidly changing landscape of AI, it’s crucial for investors to recognize that former winners may not retain their positions. The next trillion-dollar AI stocks will likely be the companies that can ride the wave of emerging trends and capitalize on the evolving market. As AI continues to shape our world, investors must analyze the sub-sectors and potential winners to make informed decisions.
As we approach 2024, all eyes are on the AI industry and the stocks that could reach trillion-dollar valuations. While predicting the winners is no easy task, staying informed and knowledgeable about the various sectors within AI can help investors navigate the market. With experts like Luke Lango providing insights and analysis, investors have valuable guidance as they seek to capitalize on the AI revolution.
Investors should remember that investing always carries risks, and thorough research and consultation with financial professionals are essential for making informed investment decisions. However, with the rise of AI, the potential for trillion-dollar stocks in 2024 is an exciting prospect that captivates investors around the world.
