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Best Artificial Intelligence Stocks to Buy
\Artificial intelligence (AI) is no longer a futuristic fantasy; it’s shaping every aspect of our lives, from healthcare and finance to entertainment and retail. Investing in the companies driving this revolution can be a lucrative venture, but navigating the dynamic AI landscape can be challenging.
This article dives into the top 15 AI stocks in the USA for 2024, providing insights into their current price, future growth potential, expert predictions, and investment considerations to help you make informed decisions.
Investment Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct thorough research and consult a financial advisor before making investment decisions.
1. Alphabet (GOOG, GOOGL):
- Current Price: $146.38 (GOOGL)
- Future Growth: Alphabet, a self-proclaimed “AI-first” company, reigns supreme in machine learning and deep learning through Google AI. Google Cloud, their cloud platform, is expected to see significant growth as companies integrate AI solutions. Diverse AI applications across advertising, search, and self-driving cars offer immense potential.
Expert Prediction: Morgan Stanley analyst Brian Nowak views Alphabet as a long-term winner due to its AI leadership and dominance in search and advertising. He recommends overweighting GOOGL for its attractive upside potential.
Investment Takeaway: Alphabet offers a diverse AI portfolio with a strong track record of innovation. Consider investing for long-term growth and exposure to various AI sub-sectors.
2. Nvidia (NVDA):
- Current Price: $594.68
- Future Growth: Nvidia’s dominance in high-performance graphics processing units (GPUs) makes it a cornerstone of AI computing power. The insatiable demand for AI processing, fueled by applications like autonomous vehicles and advanced robotics, positions Nvidia for continued explosive growth.
Expert Prediction: Tech analyst Mark Lipacis of Jefferies maintains a buy rating on NVDA, citing its strong moat in GPUs and potential in emerging AI markets like gaming and the metaverse.
Investment Takeaway: Nvidia’s leadership in GPUs and exposure to high-growth AI markets make it a high-risk, high-reward investment. Consider its volatility and evaluate your risk tolerance before investing.
3. Microsoft (MSFT):
- Current Price: $398.31
- Future Growth: Microsoft’s Azure cloud platform rivals Google Cloud, offering a comprehensive suite of AI services like Azure Machine Learning and Azure Cognitive Services. Their focus on enterprise AI solutions bodes well for future growth in the lucrative business sector.
Expert Prediction: Bank of America analyst Raimo Lenschow recommends buying MSFT, highlighting its cloud leadership and AI capabilities as key drivers of future growth.
Investment Takeaway: Microsoft offers a well-rounded AI portfolio within a stable and established company. Consider investing for solid growth and stability in the AI landscape.
4. Amazon (AMZN):
- Current Price: $149.93
- Future Growth: From personalized recommendations to Alexa’s evolving capabilities, AI permeates every aspect of Amazon’s business. AWS, their cloud platform, offers a wide range of AI and machine learning services, making them a key player in the cloud-based AI market.
Expert Prediction: Deutsche Bank analyst Ben Swinburne maintains a buy rating on AMZN, citing its dominant e-commerce position and continued investment in AI technologies.
Investment Takeaway: Amazon offers exposure to multiple AI applications within a dominant e-commerce company. Consider its focus on innovation and potential to benefit from AI-driven e-commerce growth.
5. Meta Platforms (META):
- Current Price: $384
- Future Growth: Formerly Facebook, Meta is heavily invested in generative AI, aiming to develop systems as powerful as OpenAI’s GPT-4. AI will play a crucial role in optimizing Meta’s advertising platforms, personalizing user experiences, and developing the metaverse.
Expert Prediction: Goldman Sachs analyst Eric Sheridan recommends buying META, emphasizing its potential in AI and AR/VR as long-term growth drivers.
Investment Takeaway: Meta offers exposure to cutting-edge AI research and the promising metaverse market. Consider its potential volatility and high dependence on successful metaverse implementation.
6. Upstart Holdings (UPST):
- Current Price: $32.8
- Future Growth: Upstart utilizes AI and machine learning to revolutionize loan underwriting, offering faster and more efficient lending processes. The company’s rapid growth and disruptive potential in the financial sector present exciting opportunities for investors.
- Expert Prediction: Jefferies analyst John Hecht recommends buying UPST, citing its strong execution in AI-powered lending and potential for market share expansion.
- Investment Takeaway: Upstart offers high-growth potential and exposure to AI-driven disruption in the financial sector. Consider its high valuation and potential regulatory hurdles before investing.
7. UiPath:
- Current Price: $22.09
- Future Growth: UiPath is a leader in robotic process automation (RPA), leveraging AI to automate repetitive tasks across various industries. As companies increasingly seek automation solutions, UiPath is poised for substantial growth in the years to come.
- Expert Prediction: Credit Suisse analyst Phil Winslow maintains a buy rating on UiPATH, highlighting its leadership in RPA and potential benefits from increased automation adoption.
- Investment Takeaway: UiPath offers exposure to the growing RPA market with a strong brand and track record. Consider its valuation and competition within the automation landscape.
8. Dynatrace (DT):
- Current Price: $57.14
- Future Growth: Dynatrace uses AI to provide real-time insights into digital performance, enabling businesses to optimize their cloud infrastructures and software applications. With the ever-growing complexity of cloud deployments, Dynatrace’s AI-powered solutions are in high demand.
- Expert Prediction: JMP Securities analyst John Pedicelli recommends buying DT, citing its leadership in AI-powered cybersecurity and strong recurring revenue streams.
- Investment Takeaway: Dynatrace offers a niche in AI-powered IT monitoring with a recurring revenue model. Consider its limited market size compared to broader AI companies.
9. Palo Alto Networks (PANW):
- Current Price: $337
- Future Growth: Palo Alto Networks leverages AI to enhance cybersecurity with threat detection, incident response, and fraud prevention. With cyber threats becoming increasingly sophisticated, PANW’s AI-powered solutions offer a valuable safeguard for businesses of all sizes.
- Expert Prediction: Mizuho analyst Greg Bragg recommends buying PANW, citing its leadership in endpoint security and potential for market share expansion.
- Investment Takeaway: Palo Alto Networks offers a solid AI cybersecurity play with a strong track record and recurring revenue. Consider its relative maturity compared to newer AI players.
10. Okta (OKTA):
- Current Price: $210.03
- Future Growth: Okta utilizes AI to personalize identity and access management (IAM) solutions, improving security and simplifying user experiences. As the digital workplace evolves, OKTA’s AI-powered IAM solutions are becoming increasingly essential for enterprises.
- Expert Prediction: Needham analyst Alex Henderson maintains a buy rating on OKTA, citing its unique platform and potential to benefit from increased demand for business process automation.
- Investment Takeaway: Okta offers a unique AI play in the identity management space with a focus on user experience. Consider its potential vulnerability to broader IT security trends.
11. CrowdStrike (CRWD):
- Current Price: $290.11
- Future Growth: CrowdStrike employs AI to provide endpoint security solutions, protecting devices from malware, ransomware, and other cyber threats. The company’s aggressive growth strategy and commitment to AI innovation ensure strong future prospects.
- Expert Prediction: UBS analyst John DiFucci recommends buying CRWD, highlighting its leadership in e-signatures and potential to expand into adjacent markets.
- Investment Takeaway: CrowdStrike offers high-growth potential in the cybersecurity space with a focus on AI-powered endpoint solutions. Consider its valuation and potential competition in the expanding endpoint security market.
12. C3.ai (AI):
- Current Price: $24.81
- Future Growth: C3.ai specializes in developing enterprise AI software for predictive analytics and optimization across various industries. With a focus on pre-built AI applications, C3.ai simplifies AI adoption for businesses, making it a promising player in the democratization of AI.
- Expert Prediction: Baird analyst William Power maintains a buy rating on AI, citing its differentiated approach to enterprise AI and potential for long-term growth.
- Investment Takeaway: C3.ai offers exposure to a specific niche within enterprise AI with a focus on user-friendly solutions. Consider its limited track record and competition within the broader AI analytics space.
13. Appian (APPN):
- Current Price: $32.21
- Future Growth: Appian offers a low-code AI platform that enables businesses to build and deploy intelligent applications without extensive coding expertise. This user-friendly approach to AI development could potentially accelerate AI adoption across various sectors.
- Expert Prediction: Piper Sandler analyst Matt Thornton maintains a buy rating on APPN, citing its innovative platform and potential to benefit from increased digital engagement.
- Investment Takeaway: Appian offers a unique value proposition in the AI development space with a focus on low-code solutions. Consider its early stage of development and potential competition from established players.
14. DocuSign (DOCU):
- Current Price: $63.20
- Future Growth: DocuSign leverages AI to automate and streamline document workflows, making the signing process faster and more secure. As paperless transactions become increasingly prevalent, DOCU’s AI-powered solutions are poised for continued growth.
- Expert Prediction: Morgan Stanley analyst Erik Woodring recommends buying DOCU, citing its leadership in cloud monitoring and potential for market share expansion.
- Investment Takeaway: DocuSign offers a strong play in the digital document space with a focus on AI-powered automation. Consider its dependence on e-signature adoption and potential competition in the broader document management market.
15. LiDAR Systems (LAZR):
- Current Price: $2.21
- Future Growth: LiDAR Systems develops high-resolution LiDAR sensors crucial for autonomous vehicles and robotic applications. The company’s innovative technology and partnerships with major automakers position it at the forefront of the autonomous driving revolution.
- Expert Prediction: Wedbush Securities analyst Daniel Ives recommends buying LAZR, citing its leading technology and potential for significant growth in the autonomous vehicle market.
- Investment Takeaway: LiDAR Systems offers high-risk, high-reward exposure to the burgeoning autonomous driving market. Consider its early stage of development and the uncertain timeline for widespread autonomous vehicle adoption.
Beyond the Top 15:
The AI landscape is constantly evolving, with new players emerging and established companies expanding their AI offerings.
Keep your eyes on promising names like Palantir Technologies (PLTR), GlobalFoundries Inc. (GFS), and iRobot Corp. (IRBT) as they continue to innovate and leverage AI for growth.
Conclusion:
Investing in AI stocks demands careful analysis of each company’s specific AI focus, execution strategy, and competitive landscape.
The top 15 AI stocks highlighted here offer a diverse range of opportunities across various sub-sectors of AI, making them worth considering for a well-rounded portfolio focused on the future of technology.
Remember, thorough research, a diversified approach, and careful risk assessment are crucial for success in any investment venture, including the exciting and dynamic world of AI stocks.
This comprehensive guide has equipped you with valuable insights into the top 15 AI stocks in the USA for 2024.
Use this information to inform your research, analyze investment opportunities, and embark on your successful journey into the AI investment landscape.
