The artificial intelligence (AI) boom has single-handedly taken the stock market to new heights in the past year. However, the top AI stocks to buy have taken a breather in the past few weeks. Given the monstrous gains last year, many had predicted a more volatile second half of 2024 for AI stocks. Nevertheless, it would be unwise to abandon AI stocks hastily, given the market’s massive long-term potential.

That said, investing in the right AI stocks is likely to prove incredibly lucrative over time. In the past year, these three stocks discussed in the article have cumulatively added more than $600 billion in market value, with each witnessing at least a 50% jump in market capitalization. The amazing bump in value shows the significant impact of AI initiatives on their growth trajectories.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) has arguably been the biggest beneficiary of the AI revolution, with its market cap soaring more than 50% last year. With its comprehensive approach to integrating AI across its business, MSFT has positioned itself for tremendous long-term expansion ahead.

It all started with its hefty $10 billion investment in OpenAI, a collaboration spearheading the industry. Moreover, MSFT has effectively layered AI throughout its product offerings, which has already paid dividends for its business. Its recent performances reflect that notion, where in the past four consecutive quarters, it outperformed analyst estimates by $1.35 billion on average. 

Furthermore, it’s looking to monetize AI through its innovative new products, such as the Microsoft Copilot. With a subscription model for Copilot, the company expects a massive revenue boost, potentially adding more than $25 billion in incremental sales by 2025.   

Moreover, Microsoft’s AI initiatives effectively complement its powerful business units, such as its cloud-computing arm in Azure. Azure’s recent growth continues to outpace the company’s overall sales, and AI will likely cement the platform’s position among the ‘cloud czars’.

Amazon (AMZN)

Amazon’s (NASDAQ:AMZN) AI exploits are often overshadowed by its colossal retail empire and diverse business ventures. Its cloud computing behemoth, Amazon Web Services (AWS), plays a critical role in enabling the development of powerful AI applications that help improve customer engagement, streamline operations and foster innovation. Moreover, AWS provides the necessary firepower to run AI applications, offering a variety of industry-leading services and tools.

Furthermore, the eCommerce titan has strategically invested in Anthropic, one of the most promising AI labs advancing generative AI technologies. In fact, Anthropic claims that its Claude AI large language model (LLM) can beat the leading chatbots in ChatGPT and Gemini Pro across multiple benchmarks. Amazon hopes to leverage Anthropic’s transformative potential to help position AWS at the forefront of the public cloud market for years to come. Consequently, analysts at Tipranks, assign a ‘strong buy’ rating to AMZN stock, predicting a 12% upside from current price levels.

Synopsys (SNPS)

Chip-making giant Synopsys (NASDAQ:SNPS) is one of the most important companies that are advancing the AI industry. It develops the software critical to the development of semiconductor chips powering AI products and services. Over the years, it has positioned itself as a leader in the burgeoning electronic design automation (EDA) space, targeting semiconductor development.

Even before AI went mainstream, Synopsys was generating millions in profits, with revenues growing by double-digit margins. Now, with AI reshaping technology, the company is poised for a tremendous boost as it leverages its EDA expertise to meet the evolving AI demands.

Furthermore, it’s looking to expand its market share further with its $35 billion acquisition of Ansys. Driven by AI demands, the merger effectively combines Synopsys’s semiconductor design expertise with Ansys’s simulation capabilities, a combo that could take SNPS stock to new heights.

SNPS stock attracts a ‘strong buy’ rating from Wall-Street analysts, who expect a 12.50% upside from current prices.

On the date of publication, Muslim Farooque 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