Without a doubt, breakthrough innovations can move stocks tremendously.
For example, in the last 16 years, the advent of streaming boosted Netflix (NASDAQ:NFLX) stock tremendously. The iPhone’s launch lit a fire under Apple (NASDAQ:AAPL) stock. And the success of the cloud business of Amazon (NASDAQ:AMZN) boosted its name a great deal.
More recently, Nvidia (NASDAQ:NVDA) has gotten a huge lift from the tremendous success of its artificial intelligence chips. In addition, Tesla (NASDAQ:TSLA) shares have exploded higher because of the strong demand for its innovative electric vehicles.
Going forward, AI, AI chips, and autonomous vehicles are among the technologies that could push some stocks much higher in 2024. Here are three stocks that can rise a great deal in 2024 due to their companies’ tech innovations.
Microsoft (MSFT)
In an investor note Oct. 30, investment bank Piper Sandler contended that Microsoft’s (NASDAQ:MSFT) new AI assistant, CoPilot, can produce an “iPhone moment” for the software gorilla.
With a Nov. 1 launch date, it is supposed to simplify computer programming while providing assistance with a variety of other IT tasks. Also, CoPilot will make many projects easier to complete, according to the firm.
Piper believes that MSFT’s AI projects can generate annual revenue of $10 billion within three years. If the company’s sales from AI soar in 2024, the shares could get a significant boost.
The bank kept a $425 price target and an overweight rating on the shares.
GitLab (GTLB)
GitLab’s (NASDAQ:GTLB) platform enables users to develop software. Last May, the company launched an alliance with Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL).
Under the deal, Gitlab will utilize Google Cloud to provide “new AI-assisted features” that will help firms more easily develop software with “high quality” features, Investor’s Business Daily reported recently.
Also, after Alphabet bought shares of GTLB twice earlier this year, it now owns 2.5% of GTLB. This serves as a clear indication that the search giant has high hopes for GitLab. If the adoption of GitLab’s new offerings take off in 2024, GTLB stock could soar.
Intel (INTC)
Intel (NASDAQ:INTC) is developing chips that enable users to exploit localized AI, also known as Edge AI. In other words, instead of utilizing the AI from computers at far-away data centers, consumers and companies will be able to obtain information produced with the AI of their own devices. And, many of the latter devices will be powered by Intel’s chips.
This localized AI is viewed as faster, cheaper, and more secure. It enables users to perform more tasks than datacenter-based AI. Therefore, Intel’s AI chips look poised to surge high next year as many consumers and companies exploit the advantages of localized AI.
Indeed, Intel CEO Pat Gelsinger reported on a recent Q3 earnings call that the company has several chips which enable localized AI, including its Xeon semiconductors. The CEO added that the overall demand for the Xeon chips had surged significantly, “with over one-third of 4th Gen Xeon shipments directly related to AI applications.”
Further, Intel is developing its Grand Rapids chips, expected to be two to three times more proficient at AI inferencing than the fourth generation Xeon semiconductors. These new chips could be breakthrough innovations for Intel.
Meanwhile, the demand for the chip giant’s Gaudi offerings, which are used to create AI, are booming. The overall orders for those chips doubled in the 90 days that ended on Oct. 26, Gelsinger reported.
A new version of the Gaudi chip, Gaudi 3, is expected sometime in 2024, according to another InvestorPlace columnist Alex Sirois. These Gaudi 3 chips could become another breakthrough innovation for Intel in 2024.
On the date of publication, Larry Ramer held a long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
