From Nasdaq:

In 2023, the Dow Jones and S&P 500 saw double-digit gains, but the Nasdaq Composite stood out with a remarkable 42% return. The growing fascination with artificial intelligence (AI) contributed to the momentum in tech stocks. Investors are now eyeing three companies poised to succeed in 2024, Microsoft, Amazon, and Alphabet.

Microsoft (MSFT) has made significant inroads in AI investment, committing $10 billion to OpenAI in early 2023. This has led to integration of AI-enabled applications, such as ChatGPT, and a positive outlook for CoPilot with forecasts for $100 billion in revenue. Analysts are bullish, with a three-year price target of $600 for Microsoft.

Not as quick to embrace the AI trend, Amazon (AMZN) recently invested $4 billion in AI through its partnership with Anthropic. This deal is set to revitalize Amazon’s cloud business, particularly with Bedrock, a managed service that offers various generative AI applications, rendering Amazon a potential bargain in the market at $150 per share.

Alphabet (GOOG) has also ventured into the AI space, introducing its own competitor to ChatGPT called Gemini, integrated across its suite of products and services, emphasizing the potential role of AI in its ecosystem. With a low forward P/E multiple, Alphabet is seen as a major buying opportunity trading at around $140 per share.

In conclusion, investors are looking at these “Magnificent Seven” stocks to potentially capitalize on the growing momentum in AI and its impact on various businesses, particularly in the tech sector as they prepare for 2024.



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