This year’s tech stock surge mirrors the dot-com bubble of the late 1990s, marked by rapid price increases and inflated valuations. Today, AI is driving similar excitement, revolutionizing industries from cloud computing and office software to automotive and e-commerce. Many companies are now investing heavily in AI capabilities, as this technology’s potential to reshape our daily lives provides meaningful long-term upside for companies that adopt early.

In 2024, the U.S. stock market has been going on endless rallies thanks to a number of high-profile AI stocks. Companies at the cutting edge of either creating their own AI models or integrating AI technology into their existing products and services are winning. At least some companies are seeing truly outsized top and bottom-line gains.

Here are three companies I expect could continue to see outsized gains from these trends in the coming quarters. For those expecting another leg higher in the AI trade, here are the AI stocks to buy and hold right now.

Amazon (AMZN)

Amazon’s (NASDAQ:AMZN) Q2 operating income exceeded expectations, but revenue missed slightly. Despite EPS coming in 22% above estimates, shares dropped 10% due to higher-than-expected AI-related capital expenditures of $17.6 billion. CFO Brian Olsavsky signaled increased AI spending in H2, aligning with industry trends.

In 2023, Amazon launched AI-generated reviews to help customers quickly assess products. This feature summarizes customer opinions, highlighting positive, neutral and negative feedback. Accessible on both the web and app, clicking the five stars on a product page leads to an overview starting with “Customers say.” This summary offers insights into product features like quality, value and ease of use, marked with a green check for positive feedback, an orange minus for negative and gray for neutral mentions.

Moreover, the company’s Austin chip lab tested a new server design on July 26, as executive Rami Sinno highlighted its use of Amazon’s AI chips to challenge Nvidia (NASDAQ:NVDA). Developing its processors to avoid Nvidia’s costly chips, Amazon aimed to lower costs for AWS’s AI cloud business. This initiative, mirroring efforts by Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), sought to enhance affordability and competitiveness in cloud computing and AI.

Apple (AAPL)

Surging 5% after releasing its Apple Intelligence announcement, Apple (NASDAQ:AAPL) stock is now up roughly 10% year-to-date. This move includes the recent sharp dip courtesy of Warren Buffett, who recently announced he slashed his stake in the iPhone maker in half.

Apple’s slowing growth has caused a problem for many investors, and Buffett appears to be sniffing out some material valuation discrepancies for top tech stocks right now. Buffett has famously bought Apple stock in the 10 to 15-times earnings range. But with that multiple now closer to 30 times, fundamentals-first investors are clearly taking a step back on this name.

The question is whether this recent dip is one worth buying. Bulls will point to positive sentiment created by Apple’s preview of Apple Intelligence. The suite won’t debut with iOS 18 but in iOS 18.1 and other updates, likely launching in October. Apple’s design team is also being reorganized, and the iPhone 16 is anticipated before the new features.

In other news, Apple opted for Google’s chips over Nvidia’s for its AI infrastructure, surprising many since Nvidia dominates the market. This choice aims to reduce hardware dependency and diversify Apple’s tech sources, though Apple hasn’t officially confirmed avoiding Nvidia. Apple’s AI training utilized Google’s TPUs, deploying 2,048 TPUv5p and 8,192 TPUv4 chips in large clusters. Unlike Nvidia’s GPUs, Google’s TPUs are only accessible via Google Cloud, requiring software development within its ecosystem.

Meta Platforms (META)

Despite focusing on its LLaMa model and Ray-Ban smart glasses, Meta Platforms (NASDAQ:META) has been overlooked in AI investment discussions. While Nvidia leads in AI hardware and Microsoft and Alphabet vie for AI dominance, Meta has gained significant traction. The stock surged as ChatGPT sparked the AI race, outpacing rivals like Microsoft and Alphabet, with a 22% revenue increase and a 58% rise in operating income to $14.9 billion in Q2.

Meta Platforms recently reported robust digital ad growth but saw profits hit by heavy spending on AI and the company’s metaverse ambitions. Meta raised its 2024 spending forecast, with capital expenditures up 33% due to a $10 billion infrastructure investment in AI.

Importantly, Zuckerberg announced that Meta AI can skyrocket past ChatGPT and will become the most trusted AI assistant in 2024. ChatGPT has been dominating the generative AI space, but Meta AI will emerge as a strong contender. Unlike Alphabet or Microsoft, Apple has a strong user base across its social media platforms, giving it a strong edge in AI adoption. Moreover, Zuckerberg has great vision and ambition for Meta’s future in the AI space.

On the date of publication, Chris MacDonald 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 InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor held a long position in AMZN and GOOG.