The 3 Best AI Stocks to Buy in April 2024


  • The best AI stocks to buy in April that offer growth at a reasonable price.
  • Arista Networks (ANET): It’s experiencing surging demand for its back-end networking and ethernet solutions for AI applications.
  • Dell Technologies (DELL): Has an AI server backlog of $2.9 billion and will profit from AI PC adoption.
  • Oracle (ORCL): It is benefiting as demand for AI infrastructure to train models continues to surge.
Best AI Stocks to Buy in April - The 3 Best AI Stocks to Buy in April 2024

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Artificial intelligence (AI) isn’t just a buzzword. According to Goldman Sachs, this transformative technology will disrupt industries and boost global economic growth. Considering the potential, let’s discuss some of the best AI stocks to buy in April that could have multi-year growth.

It has become clear that AI will boost productivity across many industries. First, it will automate routine tasks like customer service and data entry, saving labor costs and freeing up employees for other tasks. Already, this is happening. For example, Klarna recently disclosed that its AI chatbot does the work of 700 customer service agents.

Secondly, it will spur innovation across industries. Today, the technology is enabling molecule discovery in medicine, accelerating autonomous driving and preventing fraud in finance. Artificial intelligence will only become more capable in the future.

The following are the best AI stocks to buy in April. They are already benefiting from AI tailwinds. Their revenues are accelerating as demand for AI kicks in. Buy them for their considerable upside going forward.

Arista Networks (ANET)

Image of Arista Networks (ANET) logo on the side of a building
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Arista Networks (NASDAQ:ANET) is a core AI holding because its back-end networking and ethernet solutions are crucial for AI implementation. Its networking hardware and software are critical for AI data centers.

Generative AI has kicked off a multi-year upgrade cycle in the data center. According to Nvidia (NASDAQ:NVDA) CEO Jensen Huang, over $1 trillion will be spent over the next four years. While chips will consume a significant portion, networking equipment providers will also benefit.

Arista Networks is one of the best AI stocks to buy in April since AI needs Ethernet at scale. Typically, AI workloads are data and compute-intensive and need superior Ethernet for successful flows to GPU clusters. Customers like Microsoft (NASDAQ:MSFT) are using Arista’s 400 and 800 gigabit Ethernet in their AI back-end GPU clusters.

It’s worth noting that management has outlined a goal of $750 million in AI networking revenue in 2025. What’s more, it is gaining share against Cisco Systems (NASDAQ:CSCO) in the data switching market.

This networking innovator is well-positioned for the age of AI networking. Besides, it’s working with the Ultra Ethernet Consortium to provide solutions that improve job completion times for AI workloads. Buy ANET stock due to its high exposure to AI and cloud networking.

Dell Technologies (DELL)

Dell (DELL) Technologies Display and Logo
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While Dell Technologies (NYSE:DELL) is renowned for its computer hardware, it’s also an artificial intelligence play. Investors have recognized its potential and DELL stock is surging, up 49% year-to-date.

So why is DELL stock one of the best AI stocks to buy in April? The company is experiencing significant demand for its GPU-based server solutions. AI server orders represented 25% of server revenue in the recently concluded fiscal year 2024.

Per Q4 FY2024 results, Dell delivered $800 million in AI shipments, with AI-optimized server orders increasing 40% quarter-over-quarter. What’s more, AI backlog was approximately $2.9 billion on a five-quarter pipeline.

Analysts are even more bullish and see an upside to Dell’s AI revenues. Evercore ISI expects at least $5 billion in FY2025. Even better, they expect the momentum to continue. Citi’s Asiya Merchant forecasts $10 billion in AI revenues by FY2026, with a potential upside in the range of $12 to $15 billion.

Lastly, according to Canalys, AI personal computer adoption will increase, accounting for 60% of PCs shipped by 2027. The research firm expects 19% of total PC shipments in 2024 to be AI-capable. The adoption of AI-capable PCs will increase the total addressable market of the PC market, benefiting Dell Technologies.

Oracle (ORCL)

A photo of an Oracle (ORCL stock) sign outside a building.
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At 22 times forward earnings, Oracle (NYSE:ORCL) is one of the best AI stocks to buy in April. As recent Q3 FY2024 results revealed, the company is one of the top AI beneficiaries.

Oracle is at the forefront of AI selling infrastructure to train AI models. Furthermore, it’s redesigning its industry-specific applications to fully leverage generative AI. For instance, in healthcare, it has reengineered the Ambulatory Clinic System to include a Clinical Digital Assistant with voice interaction capability. It can listen to doctor consultations, then automatically generate prescriptions or parse doctor notes and update a patient’s electronic health records.

Oracle Cloud Infrastructure (OCI) is experiencing revenue acceleration due to AI demand. The service has the upper hand over competitors due to its superior capabilities. Besides integrating AI into Fusion and Industry Cloud applications and autonomous databases, it enables and refines AI models using customer data.

The AI momentum continues, with Oracle signing several large infrastructure contracts spurred by demand for artificial intelligence. For example, in Q3 FY2024, it entered into a big Generation 2 cloud infrastructure contract with Nvidia.

Indeed, OCI’s growth momentum is accelerating due to AI. While total cloud revenue in Q3 FY2024 grew 24% year-over-year, OCI grew 49%. OCI consumption revenue growth was 63% and would have been higher if not for some supply constraints. These trends prove Oracle is an AI beneficiary that will continue to march higher.

On the date of publication, Charles Munyi did not hold (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 Publishing Guidelines.

Charles Munyi has extensive writing experience in various industries, including personal finance, insurance, technology, wealth management and stock investing. He has written for a wide variety of financial websites including Benzinga, The Balance and Investopedia.

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