What are some good AI stocks?
Artificial intelligence (AI) has become a hot investment area, and investors are betting on tomorrow's winners. This has driven shares of technology companies active in this space to double- and triple-digit gains -- and helped the S&P 500 and Nasdaq-100 recently reach record highs.
| Company (ticker) | 1-Year Return |
|---|---|
| Nvidia (NVDA) | 269.9% |
| KLA (KLAC) | 89.6% |
| Amazon (AMZN) | 84.0% |
| Cadence Design Systems (CDNS) | 59.4% |
- Palo Alto Networks, Inc. (NASDAQ:PANW)
- Intuitive Surgical, Inc. (NASDAQ:ISRG)
- Snowflake Inc (NYSE:SNOW)
- Oracle Corporation (NYSE:ORCL)
- Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
- Adobe Inc. (NASDAQ:ADBE)
- Advanced Micro Devices, Inc. ...
- Salesforce Inc (NYSE:CRM)
Artificial intelligence (AI) has become a hot investment area, and investors are betting on tomorrow's winners. This has driven shares of technology companies active in this space to double- and triple-digit gains -- and helped the S&P 500 and Nasdaq-100 recently reach record highs.
- Alphabet Inc. (NASDAQ:GOOGL) Average Analyst Share Price Upside: 3% ...
- Equinix, Inc. (NASDAQ:EQIX) ...
- ANSYS, Inc. (NASDAQ:ANSS) ...
- Marvell Technology, Inc. (NASDAQ:MRVL) ...
- AMETEK, Inc. (NYSE:AME) ...
- Snowflake Inc. (NYSE:SNOW) ...
- Intuitive Surgical, Inc. (NASDAQ:ISRG)
Nvidia was the best-performing stock in the entire S&P 500 in 2023, and it's largely due to the company's AI exposure. Demand for Nvidia's high-end AI chips drove staggering 265% revenue growth and 768% net income growth for Nvidia in the fourth quarter.
Some of the best AI stocks that you can buy with less than $5 are Nerdy, Inc (NRDY), BigBear.ai Holdings (BBAI) and AudioEye, Inc (AEYE). These stocks are poised to see considerable growth in the future.
Nvidia has 0.24% upside potential, based on the analysts' average price target. Is NVDA a Buy, Sell or Hold? Nvidia has a conensus rating of Strong Buy which is based on 39 buy ratings, 2 hold ratings and 0 sell ratings.
Advanced Micro Devices has a conensus rating of Strong Buy which is based on 28 buy ratings, 6 hold ratings and 0 sell ratings. The average price target for Advanced Micro Devices is $201.26. This is based on 34 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Does Warren Buffett own any AI stocks?
Warren Buffett Owns This Artificial Intelligence (AI) Stock, but Should You? Billionaire investor Warren Buffett, who leads Berkshire Hathaway (NYSE: BRK. B)(NYSE: BRK. A), has made an artificial intelligence company the largest holding in Berkshire's $371 billion portfolio.
- Amazon stands to benefit handsomely from AI across both cloud and e-commerce.
- Nvidia partner Micron is on the cusp of an AI memory boom.
- Tencent is an AI leader in China and its stock is incredibly cheap.
Elon Musk's artificial intelligence company, xAI, has secured $500 million in commitments from investors toward a $1 billion goal, according to people with knowledge of the talks.
The five AI stocks Nvidia owns shares in
Recursion Pharmaceuticals, which is using AI to reshape drug discovery. Tusimple Holdings, which develops advanced autonomous self-driving technologies for the trucking industry. SoundHound AI (NASDAQ: SOUN), which develops voice recognition and conversational AI technologies.
JPMorgan CEO Jamie Dimon told CNBC recently that Nvidia is not a bubble, adding that the key difference from the dot-com era is that while the internet bubble was hype, AI isn't. Dimon's reasoning: AI can handle “a tremendous amount of stuff,” in areas such as cybersecurity and pharmaceutical research.
Adding AI to your investment strategy can open doors to the thriving tech market. AI funds and Tech ETFs let you invest in top-tier tech firms without choosing individual stocks, giving broad exposure while mitigating single stock risks.
Over the past month, the Zacks Consensus EPS estimate has moved 1.22% higher. Amazon is holding a Zacks Rank of #2 (Buy) right now.
Analyst sentiment toward AMD is overwhelmingly positive, with a “strong buy” consensus. Out of 33 analysts, 27 recommend a “strong buy,” 1 suggests a “moderate buy,” and 5 suggest a “hold.”
| Company Name | LTP | Market Cap |
|---|---|---|
| BLISSGVS Bliss GVS Pharma Ltd | 109.2 | 1083.03 |
| BOMDYEING Bombay Dyeing & Manufacturing Company Ltd | 146.85 | 2908.01 |
| OAL Oriental Aromatics Ltd | 316.4 | 1059.75 |
| ITDCEM ITD Cementation India Ltd | 293.65 | 4623.66 |
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the cheap AI stocks to buy in 2024, along with Rekor Systems, Inc. (NASDAQ:REKR), Symbotic Inc. (NASDAQ:SYM), and AeroVironment, Inc.
How to invest in AI?
This can be done by investing in individual stocks, or by investing in ETFs or mutual funds that focus their investments in AI stocks. There are widely held, well-known AI stocks, as well as much less known AI stocks, that may represent good investments.
Currently there's no upside potential for AI, based on the analysts' average price target. Is AI a Buy, Sell or Hold? C3ai has a conensus rating of Hold which is based on 3 buy ratings, 7 hold ratings and 3 sell ratings.
| STOCK | ACTION | TRADE PRICE |
|---|---|---|
| CGPOWER | BUY | 462 |
| BAJFINANCE | BUY | 6456 |
| ENGINERSIN | BUY | 187 |
| JSWSTEEL | SELL | 793 |
Global banking and investment firm Goldman Sachs estimates that global investment in AI could reach $200 billion by 2025 (next year!), double the amount invested in the field in 2022. Forecasts by Zion Market Research suggest that this total could more than double again to $422 billion by 2028.
| Ticker | Company | Performance (Year) |
|---|---|---|
| NVDA | NVIDIA Corp | 287.22% |
| SOUN | SoundHound AI Inc | 267.76% |
| SYM | Symbotic Inc | 177.62% |
| AVAV | AeroVironment Inc. | 79.01% |
