Nvidia (NASDAQ:NVDA) was by far the best AI stock of 2023. 2023 is over, but it was the year that artificial intelligence took off. AI stocks are facing something of a different environment in 2024. 

The evolution of the sector continues and investors continue to seek higher sales as the leading indicator of success. By the way, that’s why Nvidia did so well last year: Demand for its products spiked sales while many other firms have yet to see top line results from AI.

Yet, other AI stocks continue to have plenty of potential to not only increase sales but to rise in price for other reasons. This article is dedicated to those firms.

AMD (AMD)

Investors just got a great chance to pick up AMD (NASDAQ:AMD) stock at lower prices. 2024 has started with something of a correction, especially in regard to tech and AI shares. The result is that AMD shares have fallen from $150 to $137 as I write this.

Make no mistake about it, the so-called correction is primarily a result of investors securing gains immediately after the calendar tax year ends. It is not a reflection of the purported beginning of some long-term AI correction in 2024. That’s how I feel anyway and the fact that AMD shares are rebounding seem to confirm my suspicion.

I continue to argue that AMD is the number one contender in the AI space at the moment. The company will release its mi300 chips at some point in 2024. That will give the firm’s shares a very strong positive catalyst in their favor. It’s very evident that the top tech firms across Silicon Valley are interested in the chips as a way to reduce costs as an alternative to Nvidia’s highly priced h100 chips.

Broadcom (AVGO)

2024 promises to be a very good year for Broadcom (NASDAQ:AVGO) and owners of its stock. Like every other share on this list, Broadcom is cheaper at the moment than it was just a week ago. That’s obviously an opportunity for all investors and arguably a reason to pick up AVGO shares in and of itself.

That said, I would argue that investors should pick up Broadcom because its acquisition of VMware and the finalization thereof, promises to make 2024 very strong. Broadcom’s acquisition of VMware was finalized in November after much concern. Finalization of the deal was delayed three times. It’s very apparent that regulators worry about the potential of the company to become monopolistic in nature. Now that it’s been given approval and acquired VMware it should also be apparent that the company has been transformed.

That truth is reflected by the company’s guidance for the 4th quarter of a 40% increase in revenues, in part due to its VMware acquisition. The company is the leader in software infrastructure in the AI space, now has a much greater top line, and continues to pay investors a strong dividend that is growing rapidly.

Microsoft (MSFT) 

Microsoft (NASDAQ:MSFT) dominates many niches throughout the tech sector. The company carved out a spot in 2023 and into 2024 as a leader in AI. It’s hard to talk about AI stocks without mentioning Microsoft. There are dozens of reasons to potentially invest in Microsoft, AI being one of them. Here’s how I look at Microsoft in relation to artificial intelligence.

Of course, OpenAI has dominated the conversation in relation to Microsoft and AI. Microsoft’s investment and integration of ChatGPT across its services was and remains the major story. Yet, Microsoft doesn’t, or hasn’t yet, benefited much from its investments on a top line basis. 

Microsoft rebounded in 2023 with revenues up 13% and income increasing by 27% in the most recent earnings report. I think the increase in income is an important aspect to focus on. Microsoft has invested in applying AI to its suite of Office products which promises to increase efficiency at firms everywhere. That’s where I see the benefit of Microsoft’s AI prowess at the moment: the company helps other companies increase their efficiency thereby improving their respective bottom lines. In turn, that should increase Microsoft’s top line.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) drastically turned around in 2023 as the macroeconomic picture stabilized. Revenues are again strong across its family of apps business, which is the primary reason to invest in the company overall. Of course, interest rates are very likely to be slashed multiple times in 2024 and that again should pave the way for stronger ad revenues in the new year. In other words, there is a lot of reason for optimism around META stock currently.

One thing that arguably gets lost in the conversation surrounding Meta Platforms is just how much the company has invested in artificial intelligence. Make no mistake about it, the company has invested as much as anyone else in AI. 

It’s no secret that Nvidia’s h100 chips are in high demand. However, it may come as a surprise to understand just how much of that Supply Meta Platforms procured. Nvidia sold roughly half a million of those chips during the most recent quarter. Of that, Meta and Microsoft bought roughly 60%, with 150,000 chips each. 

Investors should expect the company’s Llama 2 large language model (LLM) to garner more and more attention in 2024. 

Intel (INTC)

A lot of times, Intel (NASDAQ:INTC) gets relegated to the tier of has been in relation to chips and AI stocks. It was overtaken by AMD In late 2022 and has been playing catch up since.

One of the primary reasons to believe that Intel will be able to make headway in that regard in 2024 relates to AI and personal computers. Both Intel and AMD are releasing AI-enabled processors for the PC market in 2024. Those chips include something called a neural processing unit (NPU) which is integrated into the CPU. 

Essentially, NPU chips are more powerful and better suited to AI applications and promise to bring a wave of AI capability to PCs this year. 

The release of those chips promises to make Intel interesting again after what was arguably a difficult 2023. During the most recent quarter, revenues slipped by 8%. Although the result was above guidance, it’s difficult to argue that declining revenues are a win. NPU chips promise to change that.

Snowflake (SNOW)

Simply put, Snowflake (NYSE:SNOW) stock continues to brim with massive potential as we move into 2024. I’d argue that as much as any other AI share, Snowflake has deep potential to provide massive returns.

Few other firms are comparable to Snowflake in regard to scale and growth potential. More succinctly, SNOW is very well positioned to benefit from the resurgence of growth stocks in 2024. That resurgence will be prompted by the Federal rate cuts, which almost always galvanize growth stocks higher.

Snowflake reported nearly $700 million in product revenue in the most recent quarter, rising by 34%. That’s an impressive rate of growth especially in consideration of the company’s size. Investors are well aware of the opportunity presented by the application of AI across data centers.

However, I think some may not be aware of how much this company’s shares have fallen during this macroeconomic cycle. Shares were about well above $300 in 2021. It’s easy to argue that they have the potential to return there as the macroeconomic environment shifts back in its favor.

Amazon (AMZN)

Amazon’s (NASDAQ:AMZN) approach to AI is heavily focused on training as many people as possible in artificial intelligence. Over the last few months a series of articles were written that all focus on the notion that Amazon is positioned to help prepare  the current workforce as AI evolves.

The company’s ‘AI Ready’ program aims to train 2 million people with the requisite AI skills necessary for the labor market by 2025. More information about that program can be found here. The purported benefits are expected to cut both ways: employers will get employees who are more able to adapt to the AI-dominated environments, and employees will be able to command greater salaries.

If you think about it, it’s a smart move that it could really move the needle for Amazon. The broader the net a company can cast, the better the potential returns are to the top line. Further, I think the most obvious potential of AI and the one that is nearest to fruition is the ability of AI to drastically improve efficiency of employees, not replace them.

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.