AI Stocks with big money have transitioned from niche chatters to mainstream investing circles. The results are palpable with organizations harnessing this transformative power to revamp operations and boost productivity. Moreover, the metrics are compelling. The global AI market was valued at a whopping $454.12 billion just last year with all signs pointing to a meteoric rise toward $2.57 trillion by 2032.
Moreover, the AI market’s bullish trajectory has just begun. Grand View Research projects a tempting $1.81 trillion opportunity by 2030. Echoing this optimism, Goldman Sachs believes that the stock market could surge as businesses further integrate AI, potentially nudging the Standards and Practices (S&P) 500 to record highs at 4,884.
However, some may question if the momentum behind AI stocks has waned. On the contrary, the sector is just getting warmed up.
Nvidia (NVDA)
Nvidia (NASDAQ: NVDA) is a behemoth in the AI stock market, leading the charge with considerable aplomb. The company’s recent accolades are incredibly compelling, including a third-quarter sales projection that confidently overshadows analyst predictions. It also has an assertive $25 billion share buyback annoucement, indicating confidence in its trajectory.
While big money confidently bought 91.6 million shares and parted with only 76.4 million, the company’s second-quarter financials were the real eye-catcher. With an earnings-per-share of $2.70, up an astounding 429% year-over-year, Nvidia comfortably soared past analyst estimates. The sales for the same quarter doubled to $13.51 billion, surpassing the $11.2 billion analyst benchmark.
Furthermore, its forward third-quarter guidance teases a potential $16 billion revenue, significantly above prior estimates. The insatiable demand for Nvidia’s AI microchips attributes to this enormous bump . With the NVDA stock tripling year-to-date, the future seems remarkably bright for Nvidia.
Tesla (TSLA)
Institutional investors continue to back EV juggernaut Tesla (NASDAQ: TSLA), scooping up 70.8 million shares in its most recent quarter. Financial juggernauts, including State Street (NYSE:STT) and Morgan Stanley (NYSE:MS), braced their portfolios with $4.4 million and $5.86 million shares, respectively.
Although earnings were mixed, the $24.9 billion revenue surpassed the expected $24.47 billion. The 91-cent earnings-per-share also beat the 82-cent forecast. The 9.6% operating margin was a letdown. However, I see this as a short-term setback with TSLA stock rebounding from deeper lows before.
Moreover, while Nvidia leads AI chip supply, Tesla is working independently to run AI-centric hardware for its FSD software. It is also making major strides into the Dojo supercomputing platform for advanced AI applications. Additionally, with its market cap hovering at a whopping $850 billion and predictions of AI adding a potential $15 trillion to the global economy by 2030, Tesla stands to benefit immensely.
Microsoft (MSFT)
Big money scooped up a net 7.5 million shares of Microsoft (NASDAQ: MSFT) last quarter as Vanguard and State Street took confident leaps, purchasing 3.7 million and 1.5 million shares, respectively.
Microsoft has been on quite the run this year, propelled by the buzz surrounding its investments in generative AI bellwether Open AI. Furthermore, MSFT was recently highlighted by Wells Fargo as one of the prospective “megacap” stocks poised for a large surge in the back-end of the year. Additionally, Microsoft’s fourth quarter showcased astonishing momentum as operating profits remarkably surged 18% to $24.3 billion, and sales grew by a remarkable 8% year over year to an eye-catching $56.2 billion.
Microsoft’s innovative AI Co-Pilot initiatives could bolster this growth, which could add another layer of growth across both lines of its business. Additionally, with Azure’s robust 22% market share, Microsoft’s dominance in the cloud industry remains absolutely unmatched. Therefore, MSFT remains among the best tech stocks to capitalize on the burgeoning AI wave.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
