From Nasdaq:

The S&P 500 made a strong recovery in 2023, rising 24% after a 19% plunge the previous year. The index hit a new all-time high in January of 2024, closing at 4,840 and officially entering bull market territory. Rising stock prices have been mainly attributed to a boom in artificial intelligence (AI). Companies are pivoting to the budding market, leading to a surge in AI interest and investment. With AI excitement likely to continue in 2024, now could be a good time to make a long-term investment in the sector.

Two hypergrowth AI stocks to consider buying in 2024 and beyond are Nvidia and Alphabet. Nvidia’s stock has already surged 24% year to date after soaring 239% in 2023. The company’s business has exploded over the last year, and its GPUs have become essential for AI developers. Nvidia’s quarterly revenue has climbed 200%, with operating income up 729%. Analysts are speculating if chip stocks could be in for a sell-off in 2024, but a long-term perspective is crucial. With the AI market projected to exceed $1 trillion, Nvidia could continue to see significant gains in AI GPUs for years.

Alphabet, Google’s parent company, is another compelling AI investment option. The company unveiled its highly anticipated AI model, Gemini, in December, which is expected to unlock numerous growth opportunities in AI for Google Cloud. AI’s potential to bolster the company’s digital ad business is especially promising, as advertising makes up over 80% of Alphabet’s revenue. With significant cash reserves and advanced AI tech, Alphabet is an attractive investment option in 2024 to hold indefinitely.

Investors may not want to buy stock in Nvidia without considering other options. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now, and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce significant returns in the coming years. Stock Advisor provides investors with a blueprint for success, including guidance on building a portfolio and regular updates from analysts. The service has more than tripled the return of the S&P 500 since 2002.



Read more: 2 Hypergrowth AI Stocks to Buy in 2024 and Beyond