From Nasdaq:

Interest in artificial intelligence (AI) has skyrocketed this year thanks to the launch of OpenAI’s ChatGPT in November 2022. The AI market is estimated to reach over $1 trillion before the decade’s end, growing at a rate of 37% annually through 2030.

Both Nvidia and Microsoft have made significant strides in AI. Nvidia has seen a 237% stock increase and a 206% revenue growth in fiscal 2024. The company’s expected earnings per share could reach $24 within two fiscal years.

Microsoft, on the other hand, has invested $1 billion in OpenAI and offers lucrative AI solutions across its cloud platform and productivity services – generating $63 billion in free cash flow this year.

Given their respective positions, Nvidia’s stock has the potential to rise by 95% in the next two fiscal years, while Microsoft’s could increase by 32%. Therefore, Nvidia could be the better AI stock for 2024 and beyond.

Before investing in Nvidia, investors should consider the 10 best stocks identified by The Motley Fool Stock Advisor team, which currently excludes Nvidia. The Stock Advisor service has consistently outperformed the S&P 500 since 2002.



Read more: Better Artificial Intelligence (AI) Stock for 2024: Nvidia vs. Microsoft