The Top 10 AI Stocks Worth Your Attention in 2024

Since ChatGPT took the world by storm in late 2022, attracting 100 million users in just two months, artificial intelligence has become THE investment narrative of 2024. But here’s the real question: which AI stocks should you actually buy?

Why AI Stocks Are Flying Right Now

The numbers tell the story. According to PitchBook, AI startup investments jumped 65% this year alone. Meanwhile, the Philadelphia Semiconductor Index has surged over 60%, crushing broader market returns. The global AI market hit $515.31 billion in 2023 and is projected to reach $2.74 trillion by 2032—that’s a 20.4% compound annual growth rate.

Translation: the AI boom is just getting started.

The 10 Best AI Stocks in 2024

1. NVIDIA (NVDA): The GPU King

Stock Price: $487.12 (±0.20%)

NVIDIA is basically the pickaxe seller in this gold rush. Q2 2023 revenue doubled to $13.5 billion, with data center AI chip sales reaching a record $10.32 billion. The company is guiding for 170% year-over-year Q3 revenue growth to $16 billion. That’s two consecutive quarters of doubling revenue. Goldman Sachs estimates NVIDIA’s stock has further upside as AI boosts corporate profitability across the board.

2. Microsoft (MSFT): The OpenAI Partner

Stock Price: $273.27 (±0.46%)

Microsoft invested $1 billion in OpenAI back in 2019, then doubled down with a $10 billion investment in January 2023. The company now has exclusive cloud provider rights. NewBing (powered by ChatGPT) launched in February 2023 and hit 100 million daily active users. Stock up 35%+ since year-start.

3. Alphabet/Google (GOOG): The Search Reinventor

Stock Price: $315.21 (±-0.07%)

Google’s original PageRank algorithm was already AI-based. The company has its own AI chips (Google Tensor) and launched the Bard chatbot in 2023. Stock up over 50% this year. Caveat: Bard’s early misstep cost Google $100 billion in market cap in one day, highlighting execution risk.

4. Amazon (AMZN): The Cloud Infrastructure Play

Stock Price: $232.06 (±0.04%)

AWS (Amazon Web Services) is the backbone of the AI revolution. Amazon’s significant strides in both AI and cloud services, combined with consistent financial growth, make it a solid 2024 pick. Stock up 78.23% over one year.

5. Advanced Micro Devices (AMD): The GPU Alternative

Stock Price: (Latest available)

AMD competes directly with NVIDIA in the GPU space. ChatGPT demand has driven up orders significantly, and Bloomberg reports future revenue is expected to continue climbing. Stock up 73% over the year.

6. Meta Platforms (META): The AI-First Pivot

Stock Price: $483.87 (±-0.24%)

Mark Zuckerberg said it plainly: “AI will be our biggest investment area in 2024.” Meta has invested heavily in the Llama family of large language models, Meta AI chatbot, and AI-powered smart glasses. Q4 ad revenue jumped 24% YoY to $38.7 billion. Stock up 104.18% over one year.

7. ServiceNow (NOW): The Enterprise AI Enabler

Stock Price: (Latest available)

ServiceNow committed $1 billion to its venture fund for AI and automation investments. Strategic partnership with Microsoft to integrate AI capabilities for enterprise use. Stock up 64.91% over one year.

8. Adobe (ADBE): The Creative AI Tools Player

Stock Price: (Latest available)

Despite slower-than-expected generative AI revenue integration, Adobe forecasts $21.4 billion in revenue for FY2024. The company is doubling down on innovation in generative AI, though monetization is still ramping up.

9. IBM (IBM): The Enterprise AI Infrastructure

Stock Price: $169.90 (as of 05/09/2024)

IBM’s acquisition of HashiCorp strengthens its AI infrastructure position. Strong free cash flow and 3.97% dividend yield make it attractive for income-focused AI investors. Stock up 39.38% over one year.

10. C3.ai (AI): The Pure-Play Enterprise AI Software

Stock Price: (Latest available)

C3.ai has released 40+ enterprise AI applications and partners with Google, Amazon, and Microsoft. CEO stated the company expects to hit positive cash flow and non-GAAP profitability in 2024. Stock up an impressive 183.9% over one year—but watch for profitability execution.

The Real Risks You Need to Know

Overvaluation Alert: Some AI stocks have doubled in value since late 2022, partly driven by speculation. The correction risk is real.

Regulation Incoming: Italy banned ChatGPT. Germany, France, and the US are considering stricter AI regulations. Future tightening could pressure valuations.

Execution Risk: Google’s Bard flub cost the company 7% in one day. One bad product launch or AI mistake can crater a stock fast.

How to Actually Invest in AI Stocks

Beyond buying individual stocks, you can:

• Buy AI-focused ETFs (lower risk via diversification)
• Use stock funds with active AI sector allocation
• Trade AI stocks via CFDs with leverage (5-10% margin, but increased risk)

What to Check Before Buying

1. AI Revenue %: Does this company actually make money from AI, or is it just hype? Check what percentage of total revenue comes from AI-related products.

2. Supply Chain Position: Is the company upstream (chips), midstream (manufacturing), or downstream (software)? Upstream plays like NVIDIA benefit most directly.

3. Fundamentals Matter: Strong revenue growth, healthy cash flow, and competitive advantages matter more than hype. Google and Microsoft have these; some pure-play AI startups don’t.

4. Monitor the Market: AI stocks move fast. Set stop-losses and don’t chase winners at all-time highs. The sector is growing, but timing matters.

Bottom Line

The AI revolution is real, and the data backs it up: $2.74 trillion market by 2032. But not all AI stocks are created equal. NVIDIA, Microsoft, Google, and Amazon offer the most stable exposure to AI trends. Smaller pure-play AI companies like C3.ai offer higher growth potential but with significantly higher risk.

Do your homework before investing. The upside is massive, but so are the pitfalls.