Since 2023, the world has witnessed remarkable innovations in AI technology from OpenAI, Microsoft, and Google. Today, AI-powered cars and robots are being developed, and more innovations are expected in this field. Furthermore, AI is fast altering the way things are done, lowering labor complexity and enhancing productivity. There is a growing market in the AI industry and this will also impact the AI technology stocks.
Moreover, Forbes predicts a 37.3% increase in the artificial intelligence market between 2023 and 2030. This suggests that there is a significant market in the AI industry and that this technological revolution will have an impact on all sectors. AI stocks have been rising throughout the years, and this trend is unlikely to stop very soon. So, if you’re searching for a long-term investment, try laying some eggs in AI technology stocks.
In this post, we will explore the best Artificial Intelligence stocks to invest in 2024. Whether you’re an expert or an amateur in the stock market, this piece will show you how to start your investment journey.
Why Invest in AI Stocks?
AI technology is rapidly transforming how modern-day activities across many sectors are done, from business, healthcare, and finance, to autonomous vehicles. Likewise, as AI continues to advance, companies leveraging this technology may experience substantial growth. This will make their stocks attractive for investors seeking long-term potential and exposure to cutting-edge developments.
Moreover, we see popular companies such as Google, Meta, Amazon, and others using the technological revolution to create products and services. As a result, we may expect to see more organizations focus on artificial intelligence. Furthermore, the global AI business is likely to grow in the next few years, creating an attractive environment for investors.
Similarly, the increasing need for AI-driven solutions, combined with continued technological developments, makes AI stocks an appealing investment opportunity. Therefore, AI is the future. However, before making an investment decision, it is critical to carry out thorough research on the companies and industry.
How to Invest in AI Stocks
If you’re new to stock trading and want to invest in AI technology stocks, you should properly research the market before making any investment decisions. Meanwhile, you can follow these general steps, to invest in AI stocks:
- Research Companies: Identify companies involved in AI development, robotics, and related technologies.
- Select Stocks: Decide what kind of AI stock you want to invest in and identify companies that align with your investment goals.
- Choose an Investment Platform: Select a reliable brokerage platform to buy and sell stocks.
- Open an Account: Follow the platform’s instructions to open and fund your investment account.
- Buy Stocks: Invest in your selected stocks and regularly check the performance of your portfolio and individual stocks.
- Seek Professional Advice: Investing always carries risks, so, if you’re unsure of the specific stock to invest in, seek advice from a financial advisor for a good investment strategy.
10 Best AI Stocks To Invest in 2024
If you’re looking for some of the best AI technology stocks to invest in, you should look into the Nvidia stock. Nvidia has entered an incredible new AI-powered growth phase, and soaring demand made it the best-performing stock over the last year. Generally, Nvidia’s graphics processing unit (GPU) technologies are at the forefront of the AI revolution.
Likewise, Nvidia technology is playing a critical role in moving AI ahead, and the company is developing a software business that will offer AI computing as a service. All of these new approaches suggest that Nvidia may achieve substantial sales growth and very high margins, making the value of its stock rise more.
You can not talk about the best AI technology stocks without including Microsoft. Artificial intelligence is driving excellent performance for Microsoft, particularly in its Azure cloud computing business, with demand for cloud infrastructure services increasing as developers launch and grow AI applications. Furthermore, AI will remain at the forefront of breakthroughs in Microsoft operating systems, productivity software, search engines, video gaming units, and other industries. As a result, its stocks have highly promising potential.
#3. Palantir Technologies Inc.
Since it launched its Artificial Intelligence Platform (AIP), Palantir has had a focus on machine learning and AI technologies for over two decades. Likewise, its ability to collect and analyze useful data to generate simulations and recommend ideal courses of action has earned it a reputation in the field of data analytics.
Similarly, Palantir has been acquiring business clients over the years, and its new AI technologies appear to be set to propel growing private-sector growth. For long-term investors, this AI growth stock could be a big winner.
Generally, most of Amazon’s revenue comes from its e-commerce business, however, the vast bulk of its profits come from Amazon Web Services (AWS). Moreover, the demand for cloud infrastructure and other technologies for powering AI applications is likely to increase. As a result, Amazon’s most profitable division could see a significant increase in sales.
Furthermore, AI technology is paving the way for increased factory automation and autonomous delivery, which could significantly enhance margins in the online retail market. If that happens, profits from Amazon’s vast e-commerce business might skyrocket, resulting in incredible stock gains. So, if you’re seeking the best AI technology stocks to invest in, Amazon should be on your list.
Alphabet has big advantages in AI due to the extent of its software offerings and access to massive troves of valuable data. Since 2023, Alphabet stock has been on the rise and its stock looks like one of the best value buys in the AI space. Typically, Alphabet is renowned for its market-leading search and mobile operating system (OS) technology, a rapidly expanding cloud infrastructure company, communication and productivity tools, and YouTube streaming platform. Hence, it has numerous opportunities to succeed in AI.
Additionally, through its Waymo subsidiary, Alphabet is a leader in autonomous vehicle technologies, and it stands to benefit significantly as AI-powered self-driving technology improves. Thus, Alphabet stock is an excellent choice for investors looking for growth at a reasonable price.
One of the increasing disruptive technological trends in this era is the use of AI technology to create and deploy cyberattacks. Thankfully, top cybersecurity companies are using sophisticated AI technologies to combat the rise of cyber threats. Today, CrowdStrike Holdings, Inc. is one of the leaders in AI-powered cybersecurity software.
Similarly, the adaptive technologies offered through CrowdStrike help businesses and institutions prevent breaches of their networks through linked computers, mobile devices, servers, and other hardware. Hence, if you’re looking to profit from these world-shaping trends, you should look at the CrowdStrike stock.
#7. Meta Platforms
You can’t talk about the best AI technology stocks without talking about Meta as many Meta Platforms utilize artificial intelligence for most of it activities. Generally, content feeds, ad targeting, and cost-cutting efficiency attempts are driving a significant revolution in Meta Platforms. Today, meta-social networks are among the most popular social media platforms, with billions of users worldwide.
Furthermore, Meta’s revenues have steadily increased over the years, and as its customer base grows, so will its earnings. Interestingly, Meta is still in the early phases of monetizing chatbots and leveraging AI to further its metaverse goal. With its enormous worldwide user base, data access, and extensive technological resources, the company is well-positioned to continue pulling up long-term wins.
#8. Snowflake Inc.
Snowflake Inc. is among the best artificial intelligence stocks to invest in for 2024 because of its robust growth potential. The cloud-based data platform provider outperformed revenue and earnings expectations in the third quarter of 2023, with revenue increasing 34% year over year and adjusted free cash flow increasing 78%. Today, Snowflake Inc. revenue is projected to increase beyond the previous year and this is due to its increased AI adoption as a driver of demand for its data cloud products. Therefore, Snowflake Inc. stocks are projected to rise in the long run.
#9. Palo Alto Networks, Inc.
Palo Alto Networks, Inc. ranks on the list of top AI technology stocks to buy in 2024 because it is expected to benefit the most from AI technology. Typically, the share price of Palo Alto Networks, Inc. has increased 110% in the last twelve months and it anticipates a 17% increase in revenue in 2024 over the previous year. So, if you are looking for prospective AI stocks to invest in, you should consider adding Palo Alto Networks, Inc. stock to your list.
#10. Oracle Corporation
Oracle Corporation provides products and services that address enterprise information technology (IT) environments. The company’s products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models.
Furthermore, Oracle Corporation operates in three segments: cloud and license business, hardware, and services. We believe that Oracle’s cloud infrastructure product, OCI 2.0, will continue to demonstrate strong revenue growth over several quarters. Also, we believe that Oracle stock will continue to experience an uptrend as companies seek to implement generative AI for productivity and efficiency.
Frequently Asked Questions About the Best AI Stocks To Invest in 2024
What is the future of Artificial Intelligence?
The future of Artificial Intelligence (AI) will be characterized by transformational advances across multiple industries. As technology advances, AI is predicted to play a significant role in transforming industries like healthcare, banking, and transportation. Hence, AI will increasingly be integrated into everyday products, potentially leading to more seamless and tailored user experiences. However, this progress will be accompanied by challenges, such as ethical concerns about AI decision-making, potential job displacement, and the need for strong legislation to ensure responsible AI development and implementation.
Is it advisable to invest in AI?
AI technology is the future, thus, investing in AI can be a promising idea, as it has the potential to drive technological advancements across various sectors. However, like any investment, it comes with risks. Hence, it’s crucial to conduct thorough research, consider the specific AI companies or sectors, and assess your risk tolerance before making any investment decisions.
How do I invest in AI for the future?
To invest in AI, consider diversifying across AI-related sectors like technology, healthcare, and finance. Look into companies developing AI technologies, AI-focused stocks, and ETFs, or invest in established tech giants with significant AI initiatives.
What jobs will AI replace in the next decade?
AI is expected to impact various jobs in production, data entry, customer service, and sales. However, AI is unlikely to replace jobs requiring creativity, emotional intelligence, and complex problem-solving. So, adaptation and learning new skills will be critical in navigating the evolving work setting.
Finally, AI technology is the future and every invention that revolves around artificial intelligence is also going to be impacted. Moreover, top artificial intelligence stocks have delivered incredible returns and crushed the market over the previous year and the trend looks poised to continue in 2024. So, if you’re yet to purchase an AI technology stock, you’re still early. However, ensure you carefully research the stock market and potential companies before you make any investment decision.