Home Business News AI play impacts key stocks: Buy signals imminent

AI play impacts key stocks: Buy signals imminent

by Thea Coates Finance Reporter
10th Apr 24 10:36 am

In 2024, Artificial Intelligence is like a tide that lifts all boats.

The AI bandwagon isn’t only impacting key tech stocks like Microsoft (MSFT) and ServiceNow (NOW) but also ensuring that players like Martin Marietta, XPO Logistics, and Axon Enterprise are getting the deserved investor attention, mentions Tradingbiz analyst Rahul Nambiampurath.

“While the outperformance of NVIDIA in 2024 doesn’t require any validation, the dark horses have been stocks like Medtronic and Stryker, highlighting the role of AI adoption in healthcare,” mentions Rahul.

Promising AI-driven stocks

MSFT, NVIDIA, and ServiceNow are some of the better-known players in the AI space and might have a limited amount of steam left in them, especially in the long run. Rahul has studied the market and picked a handful of players that can still surprise the traders, along with their year-to-date performances:

  • Palantir Technologies (PLTR): Up 38.58%
  • Intuitive Surgical (ISRG): Up 17.35%
  • Upstart Holdings (UPST): Down 36.44%
  • Darktrace (DARK.F): Up 24.59%
  • C3.ai (AI): Down 12.46%
  • Exact Sciences (EXAS): Down 4.80%
  • Martin Marietta (MLM): Up 26.15%
  • XPO Logistics (XPO): Up 50.99%
  • Axon Enterprise (AXON): Up 23.16%

Despite the stocks trading high and low, compared to the 2023 levels, AI usage makes them desirable enough.

Underrated players

Rahul believes that Darktrace PLC is among the more underrated players to flash buy signals. The company uses AI for threat detection, making it a credible low-cost stock for investors. Besides Darktrade, Martin Marietta (MLM) is also trading strong, despite hailing from the Construction and Materials Industry.

MLM chart: TradingView

MLM aims to use predictive analytics, automated processes, and market intelligence to make a compelling case to investors. Chart-wise., MLM is flashing a strong buy signal, courtesy of the shrinking Bollinger bands. A breach above the upper trendline of the ascending wedge can push the prices towards the $648 mark.

XPO daily chart: TradingView

Seaport Research has also hiked the price expectation of MLM to 670 from 520, a level that aligns with Rahul’s analysis.

Besides MLM, XPO looks poised for a surge to $140+, driven by Rahul’s analysis and Brian Ossenbeck’s — Analyst J.P. Morgan — assessment. XPO Logistics is using AI to optimize its supply chain management system.

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