From Nasdaq: 2024-11-15 14:00:00

After Wall Street’s post-election rally for Trump’s second term waned, investors are weighing the impact of his economic policies like tariffs and tax cuts. The technology sector is wary of tariffs on chipsets and antitrust regulations. Despite this, the AI industry is expected to continue growing due to its importance in today’s world.

Five AI giants with strong Zacks Ranks are recommended for short-term investment opportunities. The tech sector’s remarkable rally in 2023 was largely due to the adoption of generative AI technology. Estimates project generative AI spending to reach $1.3 trillion by 2032. Major U.S. tech companies are expected to invest heavily in AI applications, driving further growth.

Alphabet Inc., with a Zacks Rank #2, is leveraging its strong AI portfolio to attract new customers and enhance the search experience. Google Cloud’s AI capabilities, including the powerful Gemini model, are driving growth. Analysts predict a 17.6% increase in the stock price with a maximum upside of 36.7%.

Meta Platforms Inc., also with a Zacks Rank #2, is set to benefit from NVIDIA’s new AI chip. The company’s AI-driven platform is improving ad delivery efficiency. Meta Platforms plans to invest billions in AI initiatives, with a max upside of 40.5% for its stock.

Taiwan Semiconductor Manufacturing Co. Ltd., ranked #1 by Zacks, is a key player in AI chip manufacturing. The company’s advanced technologies and multi-project wafer processing service are driving growth. Analysts forecast a 19.2% increase in stock price with no downside.

Adobe Inc., ranked #2, has implemented AI across its products like Photoshop and Acrobat. The company is expanding into digital marketing services and short-form video editing tools. Analysts expect a 14.4% increase in stock price with a max upside of 32.7%.

Broadcom Inc. is benefiting from strong demand for its networking products, especially in AI solutions. The acquisition of VMware has boosted its infrastructure software solutions. AI revenues are expected to reach $12 billion for fiscal 2024, with a max upside of 40.9% for the stock.



Read more at Nasdaq: 5 Must-Buy AI Giants for Double-Digit Returns in the Short Term