2024 is shaping up to be very similar to 2023 for artificial intelligence. Overall, enterprises continue to be very optimistic about the potential of AI, in particular generative AI. That being said, here are seven top AI stocks for 2024 that investors may want to consider today.

Nvidia (NVDA)

Discussion around AI stocks will continue to center on Nvidia (NASDAQ:NVDA). At the moment, NVDA is the biggest, it’s the best, and there’s little indication that it’s going to slow down.

Nvidia dominates the artificial intelligence space and has seen remarkable demand for its H100 chips. Demand for artificial intelligence and high-performance computing chips was very strong in the third quarter. Nvidia sold more than half a million of its H100 chips for these purposes. Research firms that track Nvidia and its sales expect that the company will again sell more than 500,000 of its H100 chips during the fourth quarter.

That suggests that the company’s performance in early 2024 will continue to be strong, bolstering share prices. Beyond that, Nvidia has also announced its H200 chip to supersede the H100. All indications are that it will continue to lead technologically which will continue to make Nvidia the top dog in the artificial intelligence space. 

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is another top AI name to know. The stock has performed very well recently rising from $110 to nearly $140 since early November.

The company announced its MI300 chips as direct competitors to Nvidia’s H100 chips. So far, companies such as Meta Platforms (NASDAQ:META)and Microsoft (NASDAQ:MSFT) have stated that they would buy AMD’s chips. That being said, AMD has a real opportunity here.

Palantir (PLTR)

Palantir (NYSE:PLTR) has a strong and deep connection to the defense industry and continues to deepen relationships therein. The stock is much more than government revenues and relationships. Palantir’s commercial growth, at 23%, outstripped its government revenue growth of 12%.

The point being investors can choose to characterize palantir however they want. but at the end of the day, Palantir continues to grow and reached its fourth consecutive quarter of profitability. To be clear, the public side still accounts for the majority of the company’s revenues. Government revenue reached $308 million in the most recent quarter while commercial Revenue reached $251 million. 

The company has invested heavily in artificial intelligence. That is one of several reasons that investors continue to be highly interested in Palantir. Further, CEO Alexander Karp continues to be very outspoken regarding divisive and influential political topics today. That has the potential to positively, or negatively, influence share prices. 

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) will remain one of the top AI stocks heading into the new year.

In 2023, Microsoft got out to a very early lead in the generative AI battle for dominance. The company invested heavily in open AI which has helped to make it a leading game in the artificial intelligence space. Every indication is that it has been a strong investment overall and will continue to be.

The reason I think that investors should consider Microsoft in relation to its AI prowess is simple.  The company fully expects that AI will Propel it into another level of dominance that is pretty difficult to comprehend at the moment. What I mean is this:  in the most recent 12 months, Microsoft has reported just over $218 billion in revenues. 

Satya Nadella is on record stating that he intends to push Microsoft to $500 billion in annual revenues by 2030. Microsoft AI investment will bring it to that level I believe. the only thing that’s realistically going to stop Microsoft is an anti-monopoly judgment that drastically reduces its power.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOG, GOOGL) is headed in the right direction in 2024. The stock continues to rebound with strengthening ad revenues. Generally speaking, its shares look good for that reason and because the macroeconomic picture is strengthening. Rate Cuts expected in 2024 will serve to push shares higher but Google is also worth buying for AI as well.

Helping, Alphabet recently unveiled Gemini Pro for enterprise purposes in direct competition to Microsoft/OpenAI. The combination of all those factors is going to continue to make Alphabet a standout AI winner in 2024.

Snowflake (SNOW)

Snowflake’s (NYSE:SNOW) recent earnings report is one of the strongest reasons to invest in the company headed into 2024. The data center stock has not only performed better than expected, but it’s also in a prime position to benefit from cyclical macroeconomic shifts.

For one, Snowflake just noted that revenues grew by 34%, reaching $698.5 million. Not only was that above Wall Street’s expectation of $670 million, but it was also above the high end of company guidance at $675 million.

Snowflake has 436 customers who have provided it with more than $1 million in revenue over the last 12 months. What’s more, Snowflake boasts net revenue retention of 135%. That’s a strong indication that once the company has a customer it provides them value that leads to increasing sales.

Taiwan Semiconductor Manufacturing (TSM)

In regard to AI, it’s just about impossible to argue against Taiwan Semiconductor Manufacturing (NYSE:TSM) stock as 2023 ends. 

For one, TSM is the largest pure-play foundry and continues to produce chips for leading firms that other companies cannot produce. Two, the metrics behind the company are all quite strong. In particular, Taiwan Semiconductor Manufacturing boasts an attractive P/E ratio of about 18.

On the date of publication, Alex Sirois 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.