Artificial intelligence (AI) promises to reshape nearly every industry over the next decade. After a comparative analysis of over 75 publicly traded AI companies, these are the top 4 AI stock options traders should consider buying in 2024.
“AI is rapidly moving from promise to reality as companies integrate these technologies into their products and services,” says Tobi Opeyemi Amure, an analyst with Trading.biz.
“The top AI stocks have made smart early bets and investments in AI that are starting to pay off. As these companies land major partnerships and roll out new AI-powered offerings, 2024 could be a breakout year for their stock prices as revenues ramp up. I expect the top 4 AI stocks we’ve identified to outperform the broader tech index and deliver exceptional returns to investors over the next 12 months.”
Let’s look into their financial strength, advancements in products leveraging AI, partnerships, total addressable market size, and more.
1. Nvidia Corporation (NASDAQ: NVDA)
- Year range: $140.34 – $505.48
- Market cap: 1.20T USD
- Avg Volume: 37.57M
Nvidia’s graphics processing units (GPUs) enable bleeding-edge AI capabilities. With $44.870B, a 57.07% increase year-over-year, and a $26.974B annual revenue for 2023 Nvidia has the financial firepower to cement its dominance in AI hardware.
New GPUs like the H100 purpose-built for AI and Investments in AI startups signal Nvidia will lead innovations in natural language processing. Experts forecast over 25% upside for Nvidia stock in 2024 posing a viableposing viable Call option opportunity.
2. Amazon.com, Inc. (NASDAQ: AMZN)
- Year range: $81.43 – $155.63
- Market cap: 1.51T USD
- Avg Volume: 46.42M
The e-commerce leader employs AI across its businesses from recommendation engines that increase sales conversions to robots that optimize warehouse logistics. Amazon leverages its leading cloud platform AWS to offer robust enterprise AI capabilities as well. Even after rallying nearly 27% in 2022, Amazon Call options could still hold a 20% upside in 2024.
Some factors that may contribute to this upside in 2024 include the new capabilities like Amazon CodeWhisperer to aid developers in writing code more efficiently. Furthermore, AWSmachine learning courses and partnerships seek to expand Amazon’s lead in cloud-based AI.
3. C3.ai, Inc. (NYSE:AI)
- Year range: $10.48 – $48.87
- Market cap: 3.34B USD
- Avg Volume: 10.90M
C3.ai operates a respected enterprise AI software suite utilized by industry leaders like Shell and the U.S. Air Force. Following 17% year-over-year revenue growth to $73.2 million, comparative valuation analysis shows C3.ai has significant upside in 2024 and beyond, which would be best for call options.
After surging over 159% in 2023, the C3.ai stock price remains 85% below its all-time peak, presenting investors with 74% total upside potential in 2024. This could be a result of new products serving massive markets like manufacturing operations ($13 billion by 2027).
4. Palantir Technologies Inc. (NYSE:PLTR)
- Year range: $6.09 – $21.85
- Market cap: 35.89B USD
- Avg volume: 54.92M
Palantir Foundry enables customers to integrate siloed data sources and leverage AI capabilities to unlock insights and optimize decisions. Its AI strengths attracted commercial customers like BP, representing 42% of revenue in the latest quarter.
A good reason Palantir is on the list is because it continues to land more lucrative government contracts (61% of revenue) thanks to geopolitical instability. Also, new partnerships expand Palantir’s reach, such as collaborations with pioneering AI labs. Palantir stock already rallied nearly 20% in 2023. Experts suggest it could reach 30% upside in 2024.
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