Navigating the Future: Top 10 Artificial Intelligence Stocks for C-Suite Executives in 2024

In the rapidly evolving landscape of technology, Artificial Intelligence (AI) continues to play a pivotal role in shaping the future of business. For C-suite executives seeking strategic investment opportunities, the year 2024 holds promise for those attuned to the potential of AI stocks. In this exclusive guide, we present the top 10 AI stocks to consider, combining expert analysis with market trends to aid in informed decision-making.

Continue reading to find out more about the AI revolution, the reasons for investor excitement, and which ten top AI stocks are best positioned to lead this rapidly developing sector.

1. Microsoft Corporation (MSFT)

As a stalwart in the tech industry, Microsoft’s Azure AI platform and investments in AI-driven solutions solidify its position. The company’s commitment to democratizing AI for businesses of all sizes showcases its potential for sustainable growth.

• Market capitalization: $2.73 trillion
• Stock price: $368.77
• Analyst price target: $392.93
• Last 12 months’ EPS: $10.45
• Analyst projected sales growth outlook: 13.9%

Microsoft, an immense company in the computer sector, has the size, reach, and clientele to fully capitalize on its artificial intelligence knowledge. CFO plus 0.1% According to Amy Hood, the corporation will make $10 billion in revenue from its AI products and relationship with OpenAI. While she did not provide a timeline, she did affirm that it is anticipated that the $10 billion mark would be reached really soon.

2. Taiwan Semiconductor (TSM)

The largest chip foundry in the world, Taiwan Semiconductor manufactures semiconductors under contract for well-known tech firms including Microsoft and Nvidia.

• Market capitalization: $520 billion
• Stock price: $100.39
• Analyst price target: $116.67
• Last 12 months’ EPS: $5.65
• Analyst projected sales growth outlook: 19.5%

Applications using AI and machine learning rely on more sophisticated CPUs. According to a 2021 McKinsey study, artificial intelligence (AI) helped semiconductor businesses generate between $5 billion and $8 billion in profits before interest and taxes (EBIT) yearly. According to the same study, those figures would rise to $85 billion to $95 billion a year.

TSM is well-positioned to benefit from this expansion, holding more than half of the worldwide market for semiconductor foundries.

3. Meta Platforms (META)

• Market capitalization: $834 billion
• Stock price: $324.54
• Analyst price target: $349.53
• Last 12 months’ EPS: $11.33
• Analyst projected sales growth outlook: 13.1%

Meta gains by putting user interaction first, much like Alphabet. Meta can sell more advertising inventory since users are spending more time on Facebook and Instagram. Longer session durations, more targeted advertising, and more engagement may all be achieved using AI analytics.

AI may potentially be used by Meta to expedite its virtual reality expansion. Generative AI has the potential to improve software development productivity and produce more customized metaverse experiences.

4. NVIDIA Corporation (NVDA)

NVIDIA remains a powerhouse in the AI industry, leading the charge with its advanced graphics processing units (GPUs). As the demand for AI-driven applications intensifies, NVIDIA’s cutting-edge technology positions it as a cornerstone for businesses embracing AI solutions.

• Market capitalization: $1.15 trillion
• Stock price: $467.85
• Analyst price target: $588.38
• Last 12 months’ EPS: $8.58
• Analyst projected sales growth outlook: 56.5%

Like MSFT, Nvidia has a solid track record with investors. Nvidia has generated average yearly returns of greater than 43% over the last fifteen years. Naturally, it hasn’t been an easy journey. However, the stock is up 226% in 2023 following a difficult 2022.

This year’s success of the stock comes from the increasing use of NVDA processors in AI applications. 95% of the graphics processing units (GPUs) used in machine learning applications are supplied by Nvidia, according to BBC.com.

5. Alphabet Inc. (GOOGL)

Google’s parent company, Alphabet, is not only a giant in internet-related services but also a frontrunner in AI development. With subsidiaries like DeepMind and Waymo, Alphabet continues to push the boundaries of AI innovation, making it a compelling choice for investors.

• Market capitalization: $1.66 trillion
• Stock price: $132.50
• Analyst price target: $147.53
• Last 12 months’ EPS: $5.21
• Analyst projected sales growth outlook: 11.3%

There are two ways Alphabet may profit from the AI revolution. Using more sophisticated AI analytics techniques to guide search results and ad placement provide the greatest immediate possibility. Increasing user involvement is the overarching objective of such initiatives. Increased advertising inventory results from a more engaged user returning time and time again to Google Search or Youtube.

Additionally, Alphabet will keep advancing the AI features of its Google Cloud platform. Scalable resources are needed for the development and training of AI models, and the cloud excels at scaling. AWS, Microsoft Azure, and Google Cloud will all gain as more businesses use cloud computing to take advantage of AI capabilities.

6. Super Micro Computer (SMCI)

• Market capitalization: $14.71 billion
• Stock price: $262.90
• Analyst price target: $336.38
• Last 12 months’ EPS: $11.83
• Analyst projected sales growth outlook: 25.9%

Supermicro has established itself as a pioneer in AI hardware because to its rapid bespoke solution development. As more companies use AI technology, there will be a greater demand for powerful yet affordable hardware. Supermicro is well-positioned to benefit from that surge in demand.

The business has been reporting increasing revenue from AI infrastructure over the last several quarters. Supermicro increased its net sales forecast for the fiscal year 2024 to a range of $10 billion to $11 billion in the first quarter of the year, which concluded on September 30. That’s a 40% to 54% increase in sales every year.

7. Micron Technology (MU)

• Market capitalization: $85.76 billion
• Stock price: $77.70
• Analyst price target: $79.86
• Last 12 months’ loss per share: $4.45
• Analyst projected sales growth outlook: 42.1%

In order to meet the increasing demand from AI applications, Micron has been transitioning its product line to high-capacity versions. AI algorithms need more RAM to handle ever-increasing data streams as their complexity increases. In order to store data inputs and outputs, they also require storage.

Despite being a lesser player in the semiconductor industry, Micron is a memory chip specialist. This creates an opportunity for the business to capitalize on the rising demand for DRAM with AI capabilities.

Additionally, Micron is utilizing AI internally to streamline its own procedures. Increasing demand combined with increasing efficiency positions MU for future financial success.

8. Amazon.com Inc. (AMZN)

Amazon’s foray into AI is not limited to its e-commerce prowess. With Amazon Web Services (AWS) leading the cloud computing space, the company’s AI offerings have gained traction, presenting an intriguing investment opportunity for executives eyeing the intersection of AI and cloud services.

• Market capitalization: $1.49 trillion
• Stock price: $144.95
• Analyst price target: $169.88
• Last 12 months’ EPS: $1.93
• Analyst projected sales growth outlook: 11.4%

Amazon holds a 32% market share in cloud computing. If AWS is able to maintain its competitiveness against Azure from Microsoft and Google Cloud from Alphabet, that is a significant chance to develop with the adoption of AI.

Amazon declared in June 2023 that it will provide $100 million to help its clients create generative AI. To keep up its position as the industry leader in cloud computing, the corporation is also expanding its own knowledge base in data science, computer engineering, and solution architecture.

9. Symbotic (SYM)

• Market capitalization: $28.97 billion
• Stock price: $51.90
• Analyst price target: $51.92
• Last 12 months’ loss per share: $0.37
• Analyst projected sales growth outlook: 45.4%

According to the firm, there is a $432 billion market for warehouse automation in the United States, Canada, and Europe. Furthermore, Symbotic and GreenBox Systems have joined together to provide warehouse space as a service. This expands the addressable market of Symbotic by an additional $500 billion.

Big box stores will increasingly need AI-driven distribution and storage solutions. Businesses that depend on manual processes going forward won’t be able to keep their competitive advantages. With the increasing need for automation, Symbotic will be discussed.

The low margins of Symbotic are one thing to be aware of. In its most recent quarter, SYM did claim margin improvement, which contributed to the company’s first adjusted Ebitda positive quarter.

10. Adobe Inc. (ADBE)

As digital transformation becomes imperative, Adobe’s integration of AI into its creative and marketing solutions propels it forward. C-suite executives looking to stay ahead in the digital marketing arena should consider Adobe as a strategic addition to their investment portfolio.

• Market capitalization: $282 billion
• Stock price: $620.58
• Analyst price target: $608.46
• Last 12 months’ EPS: $15.40
• Analyst projected sales growth outlook: 12.3%

Over the previous 15 years, Adobe, another well-known stock, has produced returns that have outpaced the market. The business is making significant investments to include generative AI capabilities in its product. While some of the other organizations on our list can provide businesses with AI capabilities, Adobe serves the entire spectrum of clients, from single individuals to large corporate marketing teams.

Generous AI features have already been released by Adobe in their Photoshop program. A program that uses text prompts to generate graphics and color palettes is also being beta tested by the firm. According to analysts, these features will propel Adobe’s subscription income in the future.

In conclusion, the realm of AI stocks in 2024 offers a landscape rich with potential for C-suite executives. While market dynamics may shift, the strategic adoption of AI is poised to remain a key driver of innovation and growth. By considering these top 10 AI stocks, executives can position themselves to navigate the evolving business landscape with confidence and foresight.

Note: This article is intended for informational purposes only and does not constitute financial advice. It is advisable to conduct thorough research and consult with financial professionals before making investment decisions.