Investors seek AI stocks after release of new ChatGPT version, Nvidia and Palantir show gains

From Nasdaq: 2024-12-28 04:50:00

Investors are seeking top artificial intelligence (AI) stocks after the release of a new ChatGPT version in early 2023. Nvidia and Palantir have seen significant gains. Although finding the best AI stocks is challenging, AI is expected to drive future gains. Qualcomm, despite being overlooked, has advanced AI in its chipsets and diversified its revenue sources.

Alphabet, Google’s parent company, faces competition from ChatGPT and its own generative AI product, Google Gemini. However, with significant liquidity and investments in quantum computing, Alphabet remains innovative. The Willow quantum computing chip has shown promise in speeding up computations and reducing errors, positioning Alphabet for growth beyond Google Search.

Qualcomm’s revenue and net income have grown, with positive forecasts for fiscal 2025. Despite slower growth, Qualcomm’s low P/E ratio suggests potential for stock price growth. Apple’s departure may not impact Qualcomm as anticipated, setting up potential for upside surprises. Alphabet’s low P/E ratio and strong free cash flow make it an attractive investment opportunity.

The Motley Fool’s Stock Advisor team has identified 10 top stocks for investors to consider, excluding Alphabet. Stock Advisor has a history of outperforming the S&P 500 and providing valuable guidance for investors. Consider investing in these recommended stocks for potential high returns.



Read more at Nasdaq: 2 Top Artificial Intelligence Stocks to Buy in January