Yahoo Finance 3 AI-Backed Stocks That Could Return Magnificent Gains in 2024
Written by Stephanie Bedard-Chateauneuf, MBA at The Motley Fool Canada
Artificial Intelligence (AI) continues to reshape industries and redefine the way businesses operate. As we step into 2024, the potential for AI-backed stocks to deliver significant returns is drawing attention from investors seeking growth opportunities. In this article, I delve into three AI-backed stocks that show promise for big gains in the coming year.
NVIDIA
NVIDIA Corporation (NASDAQ:NVDA), a leader in the semiconductor industry, has positioned itself as a powerhouse in AI with its advanced graphics processing units (GPUs). These GPUs are not only driving innovation in the gaming industry but are also a crucial component in AI applications, particularly in machine learning and data processing.
In 2023, NVIDIA saw a surge in demand for its AI-focused products, contributing to its impressive financial performance. The company’s strong focus on AI, along with smart partnerships and acquisitions, has solidified its position in the rapidly growing AI market.
Looking ahead to 2024, NVIDIA is likely to benefit from the increasing use of AI in various areas such as healthcare, self-driving cars, and cloud computing. With a strong commitment to improving AI technology, NVIDIA seems well-prepared to offer good returns for investors interested in the expanding AI field.
Alphabet
Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, is a tech giant that has been incorporating AI into many of its products and services. From improving search results to making virtual assistants smarter, Alphabet has leveraged AI to improve user experiences and drive innovation.
In 2023, Alphabet showcased its AI capabilities through advancements in natural language processing and machine learning. The company’s subsidiaries, such as DeepMind, have made breakthroughs in AI research, further solidifying Alphabet’s standing in the AI domain.
As AI continues to be a crucial part of technological progress, Alphabet’s diversified portfolio positions it to benefit from the widespread adoption of AI across industries. The company’s commitment to ethical AI practices and ongoing investments in AI research make Alphabet an attractive choice for investors looking for significant gains in the AI sector in 2024.
IBM
IBM Corporation (NYSE:IBM) has been a big player in the tech industry for decades, and in recent years, the company has shifted its focus towards AI and cloud computing. IBM’s Watson, an AI-powered cognitive computing system, has been a key player in transforming industries by analyzing vast amounts of data and providing valuable insights.
In 2023, IBM’s focus on AI solutions for businesses gained traction, with organizations increasingly relying on AI-driven analytics to make informed decisions. IBM’s initiatives in hybrid cloud and AI integration have positioned it as a leading player in helping businesses adapt to the changing digital landscape.
Looking ahead, IBM’s emphasis on AI-driven innovation, cloud computing, and quantum computing technologies puts the company in a good position for growth in 2024. As businesses look to gain a competitive edge with AI, IBM’s expertise and comprehensive suite of AI solutions make it a stock to watch for investors expecting substantial returns in the AI sector.
Final thoughts
The combination of AI and the stock market offers exciting opportunities for investors seeking growth. Companies like NVIDIA, Alphabet, and IBM have established themselves as leaders in the AI space, with strong strategies and innovative solutions that help various industries with changing needs.
While investing always involves some risks, the potential for significant gains in AI-backed stocks in 2024 appears promising. As these companies continue to drive advancements in AI technology and capitalize on its widespread adoption, investors may find opportunities for significant returns by aligning their portfolios with the transformative power of artificial intelligence.
The post 3 AI-Backed Stocks That Could Return Magnificent Gains in 2024 appeared first on The Motley Fool Canada.
Should You Invest $1,000 In Alphabet?
Before you consider Alphabet, you'll want to hear this.
Our market-beating analyst team just revealed what they believe are the 10 best starter stocks for investors to buy in 2024... and Alphabet wasn't on the list.
The online investing service they've run for a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 32 percentage points. And right now, they think there are 10 stocks that are better buys.
Get Our 10 Starter Stocks Today * Returns as of 12/22/23
More reading
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Stephanie Chateauneuf owns shares of Alphabet and Nvidia. The Motley Fool recommends Alphabet, International Business Machines, and Nvidia. The Motley Fool has a disclosure policy.
2024
