From Nasdaq:

The Nasdaq Composite index has seen robust recovery following a 43% gain in 2023, suggesting a promising year for investors in 2024. Artificial intelligence (AI) development is expected to drive market gains, with generative AI projected to add up to $4.4 trillion to the global economy annually. Top AI stocks to consider include Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Palantir Technologies, and Tesla.

Nvidia has become an industry leader in AI innovation with its graphics processing units (GPUs) that are standard chips in various AI use cases. Despite competition, Nvidia remains ahead and is expected to continue triple-digit percentage year-over-year growth into 2024 while remaining undervalued.

Microsoft made a significant investment in ChatGPT creator OpenAI, integrating the technology into its Bing search engine and cloud-based offerings. Its AI assistant, Copilot, could generate up to $100 billion in revenue by 2027. With a forward price-to-earnings ratio of 35, Microsoft’s growth potential remains attractive.

Alphabet has integrated AI into its products and is the world’s third-largest cloud infrastructure provider, with Google Cloud offering AI systems to its customers. As the rebound in digital advertising continues, Alphabet’s valuation of 27 times earnings looks like a good investment.

Amazon has been deploying AI to improve its customer experience and has been utilizing AI in its cloud infrastructure service, AWS, by offering generative AI models. As more consumers and businesses patronize Amazon, AI is primed to boost its fortunes.

Meta Platforms leverages AI for various purposes, such as identifying people in photos and surfacing relevant content on its social media platforms. Despite not offering a cloud infrastructure service, Meta has made its AI models available on major services and provides free AI-powered tools to help advertisers succeed.

Palantir Technologies has placed a high focus on data analytics and AI services, adding generative AI models to its portfolio and experiencing a high demand for its new Artificial Intelligence Platform. As demand for these services rebounds, the stock is worth considering as its PEG ratio reflects a relatively undervalued stock.

Tesla has achieved massive recognition in the EV industry and anticipates its future prosperity to be strongly linked to AI, especially with its “full self-drive” system. With an estimated 2.7 million vehicles on the road collecting data, Tesla could hold a significant edge in autonomous driving if it succeeds. The stock remains reasonably valued at 6 times forward sales.



Read more: History Suggests the Nasdaq Will Surge in 2024: My Top 7 Artificial Intelligence (AI) Growth Stocks to Buy Before It Does