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Long-term Growth: 3 High-Potential Stocks to Buy and Hold

Expect continued growth and thriving in the coming years for these three stocks

By Joel Baglole, InvestorPlace Contributor Dec 18, 2023, 9:22 pm EDT

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  • Here’s long-term growth with three high-potential stocks to buy and hold. 
  • Intel (INTC): The chipmaker has just unveiled a series of new microchips meant to compete directly against Nvidia and AMD. 
  • Broadcom (AVGO): Another AI chip winner whose recently completed acquisition of VMware should bolster its earnings and stock. 
  • C3.ai (AI): The start-up continues to be a big winner in the AI trade. 
stocks to buy for long-term growth - Long-term Growth: 3 High-Potential Stocks to Buy and Hold

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Growth stocks outperformed in 2023 led by companies associated with artificial intelligence (AI). Heading into 2024, it’s highly probably that growth stocks will continue leading the way.

The market rally has broadened in recent weeks after the U.S. Federal Reserve signaled three potential interest rate cuts in the coming year. Yet, Wall Street is unlikely to suddenly abandon growth. In fact, high-growth technology stocks could rally higher. The $1.19 trillion that has been sitting in U.S. money market funds continues to move into equities. More than $257 billion flowed into stocks between October 31 and November 30 as the rally gathered steam.

So, with the current stock market rally set to continue into 2024, let’s look at the long-term growth of three high-potential stocks to buy and hold.

Intel (INTC)

Close up of Intel (INTC) sign at entrance of The Intel Museum in Silicon Valley. Intel is an American multinational corporation and technology company.
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Challenge accepted. That was the message from Intel (NASDAQ:INTC) as the company introduced a new microchip for generative AI software. It directly competes against rivals Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD).

In fact, Intel’s new “Gaudi3” chip will be able to run big AI models that are energy intensive. Currently, they are driven largely by chips from Nvidia, which has a 70% global market share.

Specifically, the Gaudi3 chip is meant to challenge Nvidia’s H100 chip as well as AMD’s MI300X chip used in AI. Intel said that the Gaudi3 chip will start shipping to customers in 2024, though an exact date hasn’t been made public. Additionally, Intel announced new Core Ultra chips designed for Windows laptops, personal computers (PCs), and new fifth-generation Xeon server microchips. Those new chips include a specialized part called an “NPU” that can run AI programs faster.

Therefore, the new line-up of chips can be expected to serve as a catalyst for Intel and its share price in the year ahead. INTC stock is up 73% in 2023.

Broadcom (AVGO)

broadcom (AVGO) logo outside office building
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Sticking with microchip and semiconductor companies, we have Broadcom (NASDAQ:AVGO). AVGO stock has gained 25% since the company issued its latest financial results in early December.

The strong beat on both the top and bottom lines has investors feeling bullish about Broadcom and its year ahead. Several analysts have upgraded the stock since the latest quarterly print, including Bank of America (NYSE:BAC), which raised its price target to $1,250 a share from $1,200 previously.

In raising their ratings and price targets on AVGO stock, analysts have cited the application of generative AI across Broadcom’s products as a major catalyst for the stock. Also, they note that the company’s recently completed $69 billion acquisition of cloud computing firm VMware. This should immediately benefit the company’s financial results. Indeed, Broadcom said that for its fiscal 2024 year, it expects to generate revenue of $50 billion, well ahead of the $39 billion expected on Wall Street.

C3.ai (AI)

C3.ai (AI) logo on a smartphone with computer screen showing graph in background, symbolizing AI stock
Source: shutterstock.com/Below the Sky

For investors who have an appetite for risk and some patience, there’s C3.ai (NYSE:AI). Founded in 2009, the company specializes in enterprise AI. It is basically still a start-up and remains unprofitable.

But, C3.ai has promise and its stock has been a big winner in the AI trade over the past year. Closing out 2023, AI stock has increased 182% on the year. More gains can be expected as the company grows and matures.

C3.ai stock is prone to big swings higher or lower. Its stock recently plunged 12% after the company issued financial results that included weak forward guidance. The results themselves were better-than-expected, with C3.ai reporting an earnings per share (EPS) loss of 13 cents, which was better than the loss of 18 cents expected on Wall Street. Revenue totaled $73.2 million, up 17% from a year ago. The company has withdrawn a previous forecast to achieve profitability by the end of 2024, which has hurt AI stock.

Again, it’s not for every investor. But for those chasing growth, AI stock is a contender.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

Artificial Intelligence, Cloud, Semiconductor, Software, Technology

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