From Nasdaq:

Artificial intelligence (AI) was a top investing theme in 2023, with many stocks involved in the sector experiencing substantial growth. Three standout performers were Nvidia, C3.ai, and Tesla, all doubling in value. However, questions now arise over whether these stocks can sustain their growth and if they are wise investments for the future.

Nvidia, as a chipmaker, experienced significant growth in 2023 and posted sales of $38.8 billion for the nine-month period ending Oct. 29, reflecting an 86% increase compared to the previous year. With a net margin of 45%, the company remains highly profitable and well-positioned for continued success as AI adoption continues to grow.

C3.ai, the second-best-performing stock, gained 157% in 2023. However, its revenue has remained flat, with revenue totaling $73.2 million for the period ending Oct. 31. Rising losses also raise concerns about the company’s long-term growth prospects, making its performance in 2024 uncertain.

Tesla, though not an AI chip manufacturer, has seen significant stock growth, rising by 102% last year. However, the company’s margins have declined, and it has been cutting prices to remain competitive in the electric vehicle market. Economic conditions in 2024 will likely impact the stock’s performance, with expectations for more modest gains in the year ahead.

Investors considering Nvidia must assess its future performance carefully. Growth prospects for the stock and the AI sector as a whole must be carefully analyzed, especially given the changing economic landscape. Ultimately, the decision to invest in Nvidia or other AI stocks should be made based on a thorough understanding of market trends and long-term industry potential.



Read more: These 3 AI Stocks Doubled in 2023. Will They Have Repeat Performances This Year?