From Nasdaq: 2024-06-30 07:40:00

The tech bull market fueled by generative AI innovations in 2023 continues into 2024, with the Nasdaq Composite Index yielding nearly a 19% return. As investors eye the second half of the year, three Motley Fool contributors recommend watching stocks like Alphabet, Meta Platforms, and Advanced Micro Devices for potential growth and strong financial performance.

Alphabet, parent company of Google, stands out for its AI potential and financial results. With Google Assistant leading the way in AI tools and a massive user base from Google’s dominance, Alphabet is well-positioned for future growth. Its established businesses like Google Cloud and YouTube provide additional stability and investment potential.

Meta Platforms, which includes Facebook and Instagram, has seen a 45% rise in stock value since January and a 326% increase since 2023. With a growing user base and strong advertising performance, Meta benefits from the shift towards digital advertising and AI-driven ad efficiency. Analysts predict continued earnings growth, suggesting Meta stock remains undervalued.

Advanced Micro Devices (AMD) may be a significant player in the AI chip space, as the industry is expected to grow at a 38% CAGR through 2032. With Nvidia facing demand challenges, AMD’s more affordable semiconductors could attract customers. AMD’s recent data-center revenue growth aligns with Nvidia’s historical revenue trends from AI chip sales, hinting at future potential and valuation advantages compared to competitors.



Read more at Nasdaq: 3 AI Stocks for the Second Half of 2024