Investing in artificial intelligence (AI) stocks is a wise choice in today’s market. While there are not many pure-play AI companies available, several companies with deep integration of AI solutions offer great investment opportunities. Here are the top AI stocks to consider for 2024 and beyond.
1. Super Micro Computer
Super Micro Computer (NASDAQ: SMCI) is a solid choice in the AI space. It sells highly configurable servers needed to run heavy workloads like AI applications. With a close relationship with Nvidia, Super Micro Computer can maximize the performance of Nvidia’s GPUs within its servers. As more companies invest in new equipment to support AI workloads, Super Micro Computer is poised to benefit.
In fiscal year 2024, Super Micro Computer projects a 47% increase in annual revenue, reaching approximately $10.5 billion. Considering its affordable price, trading at just 16 times forward earnings, Super Micro Computer provides an attractive alternative to Nvidia.
2. Taiwan Semiconductor
Taiwan Semiconductor (NYSE: TSM) is the leading player in chip manufacturing, powering the equipment used in AI servers. With its contract manufacturing status, it exclusively produces chips for clients, positioning itself alongside its clients’ competitors. Moreover, Taiwan Semiconductor is known for producing the smallest chips in the world, with full-scale production of 3nm chips set for this year and plans for 2nm chips in 2025.
Despite the current supply glut, management expects a recovery in 2024, making Taiwan Semiconductor an appealing choice for investors.
3. Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), the parent company of Google, has been a pioneer in AI investments. Its latest AI model, Gemini, outperforms human experts in language understanding tests. This breakthrough technology positions Alphabet to monetize its AI models as developers seek the most accurate tools for generative AI platforms.
Additionally, Alphabet’s Google Cloud offers robust AI cloud computing services, catering to a wide range of companies. With a solid foothold in this market and improvements in the advertising sector, Alphabet is a no-brainer AI investment for 2024.
In conclusion, Super Micro Computer, Taiwan Semiconductor, and Alphabet are top AI stocks that are expected to outperform the market in the coming years. These companies’ deep integration of AI solutions and their competitive advantages make them attractive options for investors looking to capitalize on the AI revolution.
The source of the article is from the blog elektrischnederland.nl