SPECIAL REPORT The Top 7 Stocks for 2024

AI Powerhouses: 3 Top Artificial Intelligence Stock Picks

Advertisement

  • Embark on a journey with artificial intelligence stocks, navigating the frontier of innovation and monumental market growth potential.
  • Nvidia (NVDA): Dominating the AI domain with an 88% revenue spike and an eye on a potential $600 billion sector, Nvidia’s jaw-dropping 620% surge in the past five years underscores its unrivaled market command.
  • Adobe (ADBE): Beyond a robust Q3 profit, Adobe distinguishes itself with innovative AI tools and an ethical stance, harmonizing technology with art.
  • Axcelis Technologies (ACLS): Axcelis champions a 700% stock ascent over five years and initiates a robust $200 million buyback, affirming its pivotal imprint in the semiconductor sphere as AI flourishes.
Artificial Intelligence Stocks - AI Powerhouses: 3 Top Artificial Intelligence Stock Picks

Source: Alexander Limbach / Shutterstock

In the dynamic world of tech, artificial intelligence stocks have been spearheading things this year. From revolutionizing global business operations to driving innovations in autonomous vehicles, robotics, and machine learning, this pervasive technology is crafting a compelling narrative for savvy investors.

Furthermore, the AI’s global market valuation hit an impressive $454.12 billion last year. Looking ahead, experts predict a surge, with a compound annual growth rate (CAGR) of 19% from 2023 to 2032, potentially catapulting the industry to a worth of over $2.57 trillion. Significantly, regions including China and North America are poised to lead, expecting GDP boosts of 26% and 14.5%, respectively, by 2030.

Consequently, AI companies are emerging as more than just passing trends for investors worldwide. Although it’s still in its early stages, certain AI stocks have started to stand out, with their share prices notably increasing, some even seeing a threefold rise. Therefore, delving into these AI stocks could be a sensible move for those aiming to diversify their portfolios.

Nvidia (NVDA)

Nvidia corporation (NVDA) logo displayed on smartphone with stock market chart background. Nvidia is a global leader in artificial intelligence hardware.
Source: Evolf / Shutterstock.com

Nvidia (NASDAQ:NVDA) emerges as a guiding light in the dynamic sphere of AI, adeptly handling the complexities of generative AI with exceptional skill. Its exceptional proficiency in this field is validated by its impressive year-over-year stock surge of 250%.

The catalyst behind Nvidia’s remarkable growth is the high demand for its AI training and inference chips. Its HGX systems, essential for developing expansive language models and generative AI, have found their place in every major cloud service. This collaboration has been beneficial, contributing to an 88% increase in revenue quarter-over-quarter, reaching a high of $13.51 billion in the second quarter.

Moreover, reflecting on Nvidia’s future prospects, executive Manuvir Das anticipates the sector could burgeon to an impressive $600 billion. Consequently, shares of Nvidia have risen by over 620% in the past five years. With a substantial lead over its rivals in the AI domain, the company is in a robust position to capture a larger market share.

Adobe (ADBE)

Adobe logo on the smartphone screen is placed on the Apple macbook keyboard on red desk background. ADBE stock.
Source: Tattoboo / Shutterstock

Adobe (NASDAQ:ADBE), known for its premier creative software, is a staple among professionals worldwide. Its shift to a subscription model and expanded cloud services has strategically positioned it for continuous revenue inflow. In a bold move in September, Adobe introduced several AI-driven tools, substantially boosting its consumer product offerings.

Moreover, the company saw a notable profit of $4.09 per share in Q3, surpassing Wall Street’s $3.98 forecast. Highlighting its array of innovations, Adobe’s Firefly suite takes center stage, proudly featuring a groundbreaking text-to-image function that has generated two billion images this year alone. Furthermore, Adobe’s unwavering dedication to ethical AI practices, involving the use of licensed art for training, supports an anticipated 8% to 10% price hike for specific plans. All in all, it’s one of those artificial intelligence stocks to buy.

Furthermore, by seamlessly blending aesthetic excellence with digital prowess, Adobe actively maintains an ethical stance on AI, establishing a unique position in the field. Consequently, for investors, this strategy elevates Adobe to a prime contender within any AI-driven stock assortment.

Axcelis Technologies (ACLS)

Image of the Axcelis (ACLS) logo on a web browser amplified through the lens of a magnifying glass
Source: Pavel Kapysh / Shutterstock.com

Axcelis Technologies (NASDAQ:ACLS) is emerging as a key player in the semiconductor arena. Although it does not produce chips, it crafts essential tools used in transistor production, a fundamental component of electronics and AI. The company’s stock reflects its critical role, having soared 85% this year and an astounding 700% over five years.

Transitioning to the financials, ACLS is on robust ground. Its Q2 earnings showed a whopping 23.9% bump in revenue to $274.0 million, and net income rose by 39.3%, highlighting remarkable profitability. These staggering figures underscore the company’s remarkable position in the thriving investment sector. This makes it one of those artificial intelligence stocks to watch.

Moreover, ACLS turned heads with a recent announcement of a $200 million stock buyback, cleverly strategizing repurchases straight from its working capital. It is a blazing sign of confidence in its market and a compelling story for investors. As AI continues its upward trajectory, ACLS is one stock that investors should keep on their radar.

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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/ai-powerhouses-3-top-artificial-intelligence-stock-picks/.

©2024 InvestorPlace Media, LLC