Artificial intelligence continues to drive innovation across the tech sector, offering numerous investment opportunities. To help you navigate this dynamic market, we have identified some of the best AI stocks to watch in 2024. These companies stand out for their significant advancements in AI technology and impressive financial performance.
NVIDIA Corp (NVDA)
NVIDIA remains a leader in the AI revolution, boasting a 262% increase in revenue from the previous year. The company excels in several areas:
- Graphics Division: Provides GeForce GPUs for gaming and PCs, along with GeForce NOW, a cloud gaming service.
- Compute & Networking Division: Focuses on data center computing, networking solutions, and AI platforms like NVIDIA DRIVE for automated driving. This division also includes AI Enterprise software and DGX Cloud services.
- NVIDIA’s products are integral to gaming, professional visualization, data centers, and the automotive industry, serving a diverse range of customers including OEMs, system integrators, and cloud service providers.
ServiceNow Inc. (NOW)
ServiceNow is a cloud computing solutions provider that is rapidly expanding its AI capabilities. The company has seen a 425% increase in earnings per share and a 24% annual revenue growth.
- Key offerings include:
- Cloud Services Segment: Features the NowPlatform, Customer Service, HR Service Delivery, Security Operations, and IT services.
- Technology and Operations Division: Provides IT Service Management (ITSM), IT Operations Management (ITOM), and IT Business Management (ITBM).
ServiceNow’s innovative use of AI in their software releases, such as the “Orlando” release, demonstrates their commitment to advancing IT operations.
MicroStrategy Inc. (MSTR)
MicroStrategy is notable for its bold investment in Bitcoin, which has significantly boosted its stock performance. The company specializes in business analytics and mobile application solutions:
- MicroStrategy Analytics Platform: Offers reporting, dashboards, ad hoc analysis, and mobile dissemination.
- MicroStrategy Server: Supports analytical processing and task management.
MicroStrategy’s strategic focus on integrating AI and blockchain technology has driven a 485% increase in its stock value.
SuperMicro Computer Inc. (SMCI).
Super Micro Computer has emerged as a key player in the AI server industry, with a 351% increase in its stock value.
- The company’s offerings include:
- Server and Storage Systems: Comprehensive solutions for data centers, cloud computing, AI, 5G, and edge computing.
- Customer Support Services: Provides integration, configuration, software updates, technical documentation, training, and ongoing maintenance.
Super Micro’s focus on modular and scalable server solutions positions it well for continued growth in the AI sector.
Applovin Corp. (APP)
Applovin has made a strategic shift towards AI-driven advertising, resulting in a 230% increase in its stock value.
- The company offers:
- SparkLabs: Enhances ad visibility in app stores.
- AppLovin Exchange: Connects advertisers with mobile and CTV devices through RTB exchanges.
- Array: Manages apps for mobile operators and users.
Applovin also develops free-to-play mobile games and provides enterprise software for compliance, risk management, marketing, and advertising.
Conclusion
Investing in AI stocks requires careful consideration of each company’s technological advancements and market positioning. NVIDIA, ServiceNow, MicroStrategy, Super Micro Computer, and Applovin have demonstrated strong potential in leveraging AI to drive growth and innovation. As AI continues to evolve, these companies are well-positioned to capitalize on emerging opportunities in 2024.
FAQs
Is NVIDIA a good long-term investment?
Yes, NVIDIA is considered a strong long-term investment due to its leadership in AI technology, robust financial performance, and diverse product offerings.
Who owns the most NVIDIA stock?
Institutional investors such as BlackRock Inc., Vanguard Group Inc., and Morgan Stanley hold significant shares in NVIDIA.
Is ServiceNow overvalued?
While ServiceNow’s stock has surged, its consistent revenue growth and innovative AI applications suggest it is well-positioned for continued growth.
What is the fair price for MicroStrategy stock?
MicroStrategy’s fair price is subject to market fluctuations, but its strategic investments in AI and blockchain technology make it a compelling option for growth-oriented investors.
Is Super Micro Computer a good stock to buy?
Yes, Super Micro Computer is a strong buy due to its significant growth in the AI server market and comprehensive product offerings.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please conduct your own research before making any investment decisions.