The explosion of artificial intelligence (AI) stocks occurred in 2023, propelled by the advancements in big language models and the evolution of relational AI, which contributed to the widespread adoption of artificial intelligence. The momentum gained in 2023 is expected to continue into 2024 for some of the leading AI companies in the market.
While concerns exist among investors about potential hype surrounding artificial intelligence, there remains a strong basis for optimism. The transformative impact of artificial intelligence on our daily lives is becoming increasingly apparent, influencing some of the top AI companies significantly.
Here are seven AI companies poised for growth in the upcoming year:
Nvidia (NVDA)
Nvidia (NASDAQ: NVDA) stands out as a premier AI stock, currently priced around \(625 with a target price of \)1,100. In 2023, Nvidia surpassed expectations with notable earnings beats, showcasing its underestimated potential. The company’s strategic advantage lies in its superior AI infrastructure, although meeting the demand for its AI cards remains a challenge due to supply constraints. The launch of its h200 cards this year is expected to further enhance its market position.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ: AMD), Nvidia’s primary competitor in the AI chip sector, has gained traction with its M1 mi300x cards. The company’s CEO, Lisa Su, foresees a substantial growth opportunity in AI data centers, with analysts projecting a significant increase in AMD’s stock price if this trend continues.
UiPath (PATH)
UiPath (NYSE: PATH) specializes in software that streamlines repetitive tasks, particularly in enhancing work efficiency. The company’s revenue growth and potential expansion into conceptual AI indicate a promising future, positioning it as a key player in office technology advancements.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ: SOUN) focuses on conversational AI applications, catering to various industries such as banking, fast food, and automotive sectors. With partnerships with notable brands like Stellantis (NYSE: STLA), SoundHound AI presents a compelling investment opportunity in the realm of verbal AI technologies.
Palantir (PLTR)
Palantir (NYSE: PLTR) witnessed a significant increase in value in 2023 and continues to be a company of interest in 2024. Despite some skepticism in the market, particularly regarding the company’s AI initiatives, Palantir’s success in serving government and military clients underscores its potential for future growth.
Microsoft (MSFT)
Microsoft (NASDAQ: MSFT) has solidified its position as one of the top AI companies, with a stock price surge and a focus on integrating AI into its software offerings. The synergy between cloud computing and artificial intelligence presents a compelling investment narrative for Microsoft, particularly with its strong presence in AI cloud applications.
Baidu (BIDU)
As China’s leading search engine, Baidu (NASDAQ: BIDU) is making substantial investments in AI, mirroring the efforts of tech giants like Google. The company’s strategic focus on conceptual AI is yielding positive results, positioning Baidu for further growth and market dominance in the AI landscape.
InvestorPlace contributor Alex Sirois provides insights into these AI companies, highlighting their potential for growth and investment opportunities in the evolving AI market.
