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10 AI stocks for investment in 2024

In 2023, the global AI market size was valued at $538.13 billion and is expected to hit around $2,575.16 billion by 2032
10 AI stocks for investment in 2024
The top AI stocks are so widely available that it is becoming very essential than ever to carry out research before

Artificial intelligence (AI) stocks are gaining momentum and investors are finding them a potential option to earn massive gains. In 2023, AI stocks were the most popular trends on Wall Street.

For investors, investing in AI stocks seems to be the best option in order to make large profits in the present market. AI-related firms have become a household name over the years. The rivalry among these companies has also increased to the point that investors have a wide range of potential AI stocks to choose from.

The top AI stocks are so widely available that it is becoming very important to carry out research before deciding which stock would best suit your portfolio.

Why to invest in AI stocks

In 2023, the global AI market size was valued at $538.13 billion and is expected to hit around $2,575.16 billion by 2032, progressing with a compound annual growth rate (CAGR) of 19 percent from 2023 to 2032, according to a report by Precedence Research. The North America AI market was valued at $167.30 billion in 2022.

Asia Pacific is expected to be the fastest growing AI market during the forecast period. The rising investments by various organizations towards the adoption of AI are boosting the demand for AI technology. Baidu Incorporation, a tech giant based in China, has entered into agreements with investors for the divestiture of financial services group providing consumer credit, wealth management, and other services related to business.

Moreover, the growing adoption of AI across various industries such as automotive, healthcare, retail, and food and beverages is propelling the growth of the AI market in the Asia Pacific region.

Key factors to consider before investing in AI stocks

AI stocks present investors with a potential prospect, considering that the AI industry is likely to grow manifold in the near future. However, before investing in stocks one should consider these factors:

Financials: Carefully review the AI company’s fundamentals before making an investment. Given the high cost of AI, the balance sheet and cash flow statement of the organization require thorough examination. To invest in AI research, businesses will need to have large budgets.

Diverse clientele: A business needs customers who are ready to pay for AI-powered solutions. This would enable the business to invest in hiring AI personnel.

Technical: Investing in an AI firm should be done with caution if its value is already extremely high. Prior to making an investment, one should consider additional aspects such as average movements, support, and resistance for each company.

Partnerships: Any firm wishing to explore the field of AI would benefit greatly from having a partner who is an expert in the field. Even working together with universities and research centres can be beneficial.

M&A capabilities: Many listed firms are interested in acquiring smaller AI startups both domestically and internationally. A business that has enough cash on hand to acquire these startups, or dry powder, will have an advantage over competitors.

Robotics: This area focuses on creating and using robots that use AI. These robots can increase productivity in a variety of areas, including healthcare, manufacturing, and others.

Internet of Things (IoT): This area of the AI market consists of networked devices with data collection and sharing capabilities. AI is put in use to evaluate this data and offer insights that can enhance goods and services.

Best AI stocks to watch out for

Here is the list of some AI stocks which investors should watch for gains:

Alphabet Inc

Alphabet, the parent company of Google and YouTube, uses AI and automation in almost every aspect of its operations, including Gmail spam filters, ad pricing, and content promotion. In March 2023, Google introduced its Bard AI chatbot. Google unveiled Gemini, its most powerful and all-purpose AI model, in December.

On March 6, 2024, the stock was trading at $131.4 per share. And, as on July 9, 2024, it was trading at $191.94 per share.

Amazon Inc

Every facet of Amazon’s operations, such as Amazon Web Services, marketplace search and recommendation algorithms, and targeted advertising, have AI embedded within them. For users of the AWS cloud, Amazon provides a plethora of AI and machine learning capabilities, including chatbots, automatic code reviews, and sophisticated text analytics.

On January 4, 2024, the stock was trading at $144.5 per share. And, as on July 9, 2024, it was trading at $199.96 per share.

ASML Holding NV

ASML manufactures processing equipment and photolithography systems in order to facilitate the production of semiconductors. It is the sole manufacturer of the extreme ultraviolet (EUV) lithography tools, which is helpful in creating cutting-edge AI circuits.

On January 3, 2024, the stock was trading at euro 645.4 per share. And, as on July 9, 2024, it was trading at euro 985.9 per share.

GeneDx Holdings Corp

This genetic testing firm offers exome and genome tests, which are used to expedite medication development and create personalised health regimens. GeneDx employs methods for machine learning to make its rare disease data collection easier to analyse.

On January 2, 2024, the stock was trading at $2.64 per share. And, as on July 9, 2024, it was trading at $28.75 per share.

Read more: 10 most expensive stocks in the world by share price

Immatics N.V

It is a German clinical-stage biopharmaceutical business that investigates possible immunotherapies for cancer therapy. Immatics employs their AI-powered immuno-informatics platform, XCUBE, to find and create treatments.

On May 23, 2024, the stock was trading at $9.82 per share. And, as on July 9, 2024, it was trading at $11.83 per share.

Meta Platforms Inc

Social media and online advertising pioneer Meta Platforms is the company behind Facebook, Instagram and other platforms. According to Meta, Meta AI is the most sophisticated AI assistant that is accessible for free. It was developed using its Llama 3 model and unveiled by the business in April.

On January 2, 2024, the stock was trading at $346.2 per share. And, as on July 9, 2024, it was trading at $532.44 per share.

Microsoft Corp

Microsoft has included ChatGPT into its Bing search engine and has invested $13 billion in OpenAI. Additionally, Microsoft has combined all of its AI copilots into a single AI programme known as Microsoft Copilot. Microsoft unveiled its first Surface PCs in March, which have a special Copilot AI button for quick access to an AI chatbot powered by OpenAI.

On January 5, 2024, the stock was trading at $367.75 per share. And, as on July 9, 2024, it was trading at $463.61 per share.

MicroStrategy Inc

With more than 214,000 tokens as of March 2024, MicroStrategy Inc is a provider of cloud services, mobile applications, and business solutions. It has emerged as one of the largest corporate Bitcoin holder globally in recent times. MicroStrategy owns approximately 1 percent of all Bitcoin tokens which are in circulation.

On January 24, 2024, the stock was trading at $450.99 per share. And as on July 9, 2024, it was trading at $1,294 per share.

Nvidia Corp

Nvidia Corp. is a semiconductor maker that offers chipsets, computer graphics processors, and related software. In June, for a brief period, its market capitalization made it the biggest firm in the world.

On January 4, 2024, the stock was trading at $47.99 per share. And, as on July 9, 2024, it was trading at $132.42 per share.

Super Micro Computer Inc

It is a global leader in AI servers and a manufacturer of computer hardware. It aims to promote the adoption and deployment of technologies that can reduce costs as well as the impact on the environment.

On January 2, 2024, the stock was trading at $285.45 per share. And, as on July 9, 2024, it was trading at $911.29 per share.

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