One of the best ways to make strong stock predictions is to look for solid momentum stocks to buy. These include stocks trending higher technically or stocks benefiting from powerful news trends, such as artificial intelligence (AI). It’s also important to target companies that have powerful fundamentals, proven staying power, and the ability to survive just about any market.
Based on those standards, I predict these are the best three momentum stocks to buy for the remainder of 2023 — and New Year 2024.
Nvidia (NVDA)
One of the strongest momentum stocks of the moment is Nvidia (NASDAQ:NVDA). Since the year began, NVDA has exploded from about $143 to a high of $502.66, thanks to the artificial intelligence boom and incredible earnings.
NVDA’s adjusted EPS of $2.70 a share was well above expectations of $2.08. Revenue jumped 101% year-over-year to $13.5 billion, which was also above expectations of $11.2 billion. For the current quarter, the company expects to see revenue with a midpoint range of about $16 billion, which is also ahead of expectations. NVDA also announced plans to buy back $25 billion in stock.
Even at its current highs, I expect NVDA to push even higher with the AI story.
Even better, Goldman Sachs just added NVDA to its Conviction Buy list. The firm noted NVDA will be the principal “shovel supplier” in the AI “gold rush,” as noted by Seeking Alpha. Analysts at KeyBanc also just raised their price target on NVDA to $750 from $670 a share.
Micron Technology (MU)
Micron Technology (NASDAQ:MU) could see higher highs, too. After all, the company–which develops dynamic random-access memory (RAM), flash memory, and USB drives–helps make AI possible. The company is currently seeing big demand for its memory chips because of AI.
“This [AI] will transform the world and guess what? Memory will be at the heart of it because without data there is no artificial intelligence… And more data means a need for more memory,” said company CEO Sanjay Mehrotra. He also added that this demand will help memory and storage companies grow faster than the rest of the semiconductor industry in the near future.
MU’s earnings have been solid, too. In its Q3, the company beat earnings expectations with revenue of $3.8 billion, non-GAAP EPS of -$1.43, and operating expenses of $866 million.
Additionally, Citi just reiterated a buy rating on the stock, with a $85 price target compared to its current $69 price tag. The firm cited a recovery in DRAM for the rating. The firm initiated a “90-day positive catalyst watch” in September, as well.
Li Auto (LI)
I also want to look at electric vehicle momentum stocks, like Li Auto (NASDAQ:LI). I mentioned Li Auto just this week but wanted to add it here, too, given the explosive momentum. Since the year began, LI ran from about $22.50 to $47.50. And while it has since backed off to $35.17, the momentum here is far from over. Chinese demand for electric vehicles is still accelerating.
So far, that demand helped Li Auto deliver about 664% YoY delivery growth in August and 212.7% YoY growth in September. While the LI stock has since pulled back from recent highs, I’d use that weakness as an opportunity to buy more. Remember, EV demand is only accelerating as the world fights to go green. Initially, I’d like to see the Li Auto stock again challenge $47.50 near term.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
