If You Can Only Buy One AI Stock in January, It Better Be One of These 3 Names


  • Wise investors consider three top AI names for 2024.
  • Advanced Micro Devices (AMD): Use its recent weakness as an opportunity to buy.
  • Qualcomm (QCOM): Pioneering AI-enabled chip technology, it’s set to revolutionize mobile computing.
  • Global X Robotics & Artificial Intelligence ETF (BOTZ): This company represents a solid way to diversify at a low cost.
AI stock picks - If You Can Only Buy One AI Stock in January, It Better Be One of These 3 Names

Source: shutterstock.com/Allies Interactive

The artificial intelligence (AI) boom shows no signs of cooling, creating significant opportunity for AI stocks. First, we have to consider tech heavyweights that are investing billions into it. Next, analysts at Next Move Strategy Consulting say the AI market, currently valued at about $100 billion, could grow twenty-fold by 2030 to more than $2 trillion.

Finally, according to analysts at UBS, “If the launch of the ChatGPT application is the iPhone moment for the AI industry, the recent rollouts of numerous applications like copilots and features like Turbo and vision from OpenAI in 4Q23 mean the App Store moment for the AI industry has arrived, in our view,” as noted by Business Insider.

Therefore, some of the top AI stocks are trading at a temporary discount. So, let’s explore them next.

Advanced Micro Devices (AMD)

Advanced Micro Devices, Inc. (AMD) logo in the building at CNE in Toronto. AMD is an American semiconductor company.
Source: JHVEPhoto / Shutterstock.com

Considering recent weakness in AI stocks, Advanced Micro Devices (NASDAQ:AMD) is an opportunity. 

For one, it’s technically attractive. After slipping from about $150 to $133, the tech stock appears to have caught strong support. From its current price of $138.58, I’d like to see it initially retest $150, and eventually run to $200. 

Also, AMD is a massive player in the AI market, especially with its new MI300X accelerator chip. That is expected to generate about $2 billion in revenue this year. Further, high-demand for AI chips should fuel a greater significant upside in tech stocks, like AMD. 

Even better, UBS analysts still have AMD listed as a top pick in the semiconductor space for the year. Also, analysts at Truist raised their price target on AMD to $154 from $98. Mizuho analysts raised their price target to $162 from $130, with a buy rating, as well.

Qualcomm (QCOM)

Source: nikkimeel / Shutterstock.com

Qualcomm (NASDAQ:QCOM) could see higher highs, too. 

After running from about $105 to a high of $146.89, QCOM did pull back recently, finding support at $135. From here, I’d like to see it retest that prior high and potentially head back to $150. Also, the company recently unveiled its Snapdragon 7 Gen 3. QCOM notes that its components “deliver across-the-board advancements to ignite on-device AI,” as quoted by Engagdet.com.

Analysts like QCOM at current prices, too. For example, Mizuho just raised its price target to $155 from $140. Also, Bernstein analysts raised their price target to $160 from 145, with an outperform rating. 

“Qualcomm is pioneering AI-enabled chip technology, a move set to revolutionize mobile computing,” as noted by Investorplace contributor Muslim Farooque. “Despite earlier challenges from sluggish phone sales and reduced 5G investment, the company’s rebound, backed by solid earnings, signifies market stabilization and resilience.”

Global X Robotics & Artificial Intelligence ETF (BOTZ)

Global X ETFs logo
Global X Funds logo. (PRNewsFoto/Global X Funds)

Or, maybe diversification among top AI names is best for you. At less cost, you can always invest in an ETF like the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ).

After slipping from about $28.50 to $26.84, the ETF appears to have caught strong support. In fact, it could rally higher from here. From its current price of $26.84, I’d like to see it initially test $31 a share.

With an expense ratio of 0.69%, the ETF invests in companies that could benefit from increased utilization of robotics and artificial intelligence (AI). And, that includes those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. 

Some of its top holdings include Nvidia (NASDAQ:NVDAIntuitive Surgical (NASDAQ:ISRG), C3.ai (NYSE:AI), and Upstart (NASDAQ:UPST) to name a few of the top ones.

The nice thing about an ETF, such as BOTZ, is that you’ll pay less for greater exposure. For example, one share of BOTZ will cost you $26.84. If you wanted 100 shares, it’s $2,684. Or, you can buy one share of NVDA for $491, or $49,100 for 100 shares.

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.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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