NVIDIA has surpassed Microsoft to become the world’s most valuable company, thanks to its booming AI offerings. NVIDIA’s stock has nearly tripled over the past year, reflecting the company’s pivotal role in AI technologies.
For investors, the rapid growth of AI presents numerous opportunities. The stock market experts at City Index have identified the top five AI stocks to watch in 2024.
Nvidia (NVDA)
NVIDIA had a record year in 2023, profiting from the boom of OpenAI’s large language model software, ChatGPT. The company’s graphics cards, essential for AI processing, have driven its valuation past $3.34 trillion as of June 2024, far outpacing competitors AMD and Intel.
Altair Engineering (ALTR)
Altair Engineering posted strong revenue figures in 2023, with a 12.3% increase year-over-year and nearly tripled its free cash flow. The company released an updated AI-powered data analytics tool, RapidMiner, in November 2023, positioning it well for future growth.
C3.ai (AI)
C3.ai’s stock price has fluctuated, falling from last year’s high of $44.49 to under $30 at the start of 2024. Despite this, analysts project revenue growth of 19.8% this year and 23.6% in 2025. The company is expected to reach profitability by the end of its 2025 fiscal year.
Palantir (PLTR)
Palantir enjoyed a successful 2023, with its stock price rising from $6.40 to a high of $20.27. Both its revenue and earnings per share are expected to grow by about 20% this year, driven by continued demand for enterprise AI solutions.
Upstart (UPST)
Upstart, an AI-powered lending assistant, had a challenging 2023 due to high US federal interest rates. However, with expected rate cuts in 2024, Upstart’s services may see higher demand, boosting its revenue potential.
Matt Weller, Head of Market Research at City Index, commented on the promising landscape for AI stocks in 2024. “Companies like Nvidia and Altair Engineering have demonstrated exceptional innovation and strategic vision. AI’s ability to swiftly process information and enhance predictive analytics offers investors a tactical advantage in navigating the market.”
The integration of AI into the stock market has revolutionized trading, with algorithmic trading and predictive analytics leading the charge. AI-powered algorithms enable rapid trade execution, while predictive analytics forecast stock prices and market trends through in-depth historical data analysis.
Investors looking to capitalize on the AI revolution can consider trading these top AI stocks through the AI index available on City Index. However, it’s crucial to understand the complexities and risks involved, particularly with CFDs, which are complex instruments with a high risk of losing money rapidly due to leverage.
