Top 10 AI Stock to buy in 2024 - Traders Union

How to invest in AI stocks in 2024?

With the increased demand for technology across various industries, the global artificial intelligence market is anticipated to expand significantly and a lot of companies that tap into this technology today stand to profit so much in the future.

In fact, many publicly traded companies are actively investing in AI recently and one of the best ways for you to join the moving AI train is to invest in these companies. You can do that by buying their stocks with the expectation of progress in integration and additional income.

Best AI stocks to invest in 2024

We will now focus on the top 10 artificial intelligence stocks that provide good opportunities for investment in artificial intelligence companies.

1. Microsoft Corporation (MSFT)

With applications in their Cortana virtual assistant, Bing search engine, Azure AI platform, and OpenAI, Microsoft has been investing in AI for a number of years. MSFT is without a doubt one of the top AI stocks to buy right now, thanks to Microsoft's recent investment in OpenAI’s ChatGPT.

Natural language processing and machine learning are combined in ChatGPT technology. Because of this, computers are able to interact with people more naturally and produce more accurate results. ChatGPT's widespread use gives Microsoft a distinct advantage even though other industry leaders like Google and Apple are at the forefront of AI developments.

Because of its potential to compete with Google's multi-billion dollar search business, ChatGPT makes Microsoft the best AI stock. Microsoft has always been a fierce competitor in the tech sector, but lately, its entry into the market for search engines hasn't been successful.

However, Microsoft could drastically alter this market with the integration of ChatGPT into Bing. Bing might even be able to surpass Google as the most popular search engine, increasing revenue and the value of the MSFT stock if it is successful. This innovative technology may mark a turning point for Microsoft and launch them as one of the best AI stocks on the market into the artificial intelligence era.

2. Alphabet Inc. (GOOGL)

While ChatGPT is receiving all the attention, Google also has an impressive array of AI capabilities. With applications in search, language processing, and self-driving cars, Google's parent company is a pioneer in AI research and development.

Additionally, they provide AI-related services like TensorFlow, an open-source machine learning software library, and Google Cloud AI. Google’s project LAMDA has been rumored to be able to perceive or feel things, demonstrating just how far Google's artificial intelligence abilities have come. As Google incorporates potent AI into its operations, it is impossible to predict what trends will manifest in the future.

Google's enormous data repository serves as a particularly advantageous starting point for its artificial intelligence initiatives. Google gathers a ton of data as the most popular search engine on the planet, which can be used to power software and AI models. Google has developed tools like predictive search and language processing using such resources, giving it a competitive edge in the AI field.

Google is undoubtedly in a prime position to implement cutting-edge artificial intelligence because they have access to vast amounts of data easily. One of the most undervalued stocks on the market is the GOOGL stock, which is currently trading below its most recent highs. Without a doubt, it is one of the top AI stocks to buy right now.

3. Amazon.com Inc. (AMZN)

When compared to the other AI stocks, Amazon has one of the most varied use cases for AI. With applications in their well-known voice assistant Alexa, product recommendations, and logistics, Amazon has heavily invested in AI. The way Amazon provides customer service has changed dramatically as a result of the use of artificial intelligence (AI) in its logistics operations. Amazon can anticipate customer orders thanks to AI algorithms that identify patterns in data flows, streamlining shipping procedures and drastically cutting lead times.

With the aid of this technology, customers can now make purchases more quickly and easily. As a result, customers can now enjoy the comfort and satisfaction of shopping online for their preferred products at the location of their choice.

Amazon has a distinct competitive advantage in terms of artificial intelligence (AI) because of its Amazon Web Services. Through Amazon Web Services (AWS), they additionally provide AI cloud services. The AI algorithms at the center of today's most cutting-edge technologies are fed by big data as input. Amazon can create and enhance AI-driven goods and services more quickly and efficiently than any other provider because they have access to vast amounts of customer data stored on their own servers. This fundamental dynamic will continue to define Amazon’s place in the market as one of the best AI stocks to invest in for superior returns.

4. NVIDIA Corporation. (NVDA)

NVIDIA is a leading provider of graphics processing units used for AI training and inference. NVIDIA is included on the list of the top AI stocks to buy because it belongs to a sector that supports the entire AI industry. In particular, artificial intelligence (AI) has been transformed by the development and invention of these chips.

Progress in AI would not be possible without these chips. As a result, numerous nations are engaged in a fierce geopolitical struggle for control of that technology. For instance, it is believed that this problem is at the heart of the current trade conflict between the US and China.

Companies developing cutting-edge graphics processing units are therefore well-positioned to prosper as AI gains popularity. NVIDIA stands to benefit from the AI boom thanks to its AI chips. They are one of the few businesses paving the way for a technology that is certain to have a huge impact in the future. Their ability to produce AI chips gives them a competitive advantage and enables them to deliver top-quality goods that clients can rely on.

It is obvious why NVIDIA's products are growing in popularity on the market, given the ongoing development of computational models. The NVIDIA DGX system for deep learning, the NVIDIA Clara platform for medical imaging, and the NVIDIA DRIVE platform for autonomous vehicles are some of their AI-related products. It is easy to understand why NVIDIA is one of the best AI stocks to buy right now given their dedication to creating dependable and durable machines that use AI.

5. International Business Machines Corporation (IBM)

IBM has been making investments in AI for many years, and Watson, their natural language processing system, and their AI-powered cloud services are just a few of the applications. Through its Watson products, IBM sells AI and machine learning services that assist its clients in making wiser decisions and more money.

Watson AI applications that increase customer service while reducing costs, forecasting outcomes, and automating workflow procedures are all part of the Watson AI solution portfolio. They also provide products related to AI, such as an AI platform, integrated data, and IBM Cloud Pak for Data.

Enterprise clients can also create and scale their own AI applications using IBM's Watson Studio. Over the past few years, IBM has also acquired a number of AI companies, including Turbonomic, Instana, and Databand.ai.

6. Intel Corporation (INTC)

With products like the Intel Xeon and Intel Movidius Myriad Vision Processing Unit (VPU), Intel is a market leader in computer processors used for AI. Additionally, they provide libraries and software tools for AI, like the Intel Distribution of OpenVINO toolkit.

Intel Corp. develops, produces, and sells computer hardware and artificial intelligence (AI) technologies. It delivers computer, networking, data storage, and communications platforms. The business is divided into the Client Computing Group (CCG), Data Center and AI (DCAI), Network and Edge (NEX), Mobileye, Accelerated Computing Systems and Graphics (AXG), Intel Foundry Services (IFS), and All Other segments.

In 2023, Intel Corporation is anticipated to continue its upward trajectory in the AI market. The company's broad product portfolio, coupled with a relentless focus on innovation, positions it favorably to capitalize on the increasing demand for AI technologies.

Notably, Intel's advancements in AI-enhanced data center solutions, autonomous driving technology through Mobileye, and edge computing platforms are expected to drive substantial revenue growth. Moreover, Intel's strategic partnerships and consistent efforts toward expanding its AI capabilities make it a promising option for investors interested in AI stocks. Its commitment to delivering high-performing AI technologies underscores Intel Corporation's potential as a prudent investment choice in 2023.

7. C3 AI Inc. (AI)

C3 AI is a software company that provides enterprise AI applications for industries such as energy, manufacturing, and healthcare. C3 AI also provides SaaS (software as a service) applications to develop, deploy, and run enterprise-scale AI applications.

Offerings include purpose-driven software suites for supply chain optimization and energy efficiency, as well as industry-specific solutions for financial services and oil and gas.

Notably, C3 and Alphabet have a partnership. Utilizing the infrastructure and resources of Google Cloud, the two businesses collaborate to create new AI applications. Google Cloud also offers all C3 AI applications.

In 2023, C3 AI Inc. (AI) stands out among the companies with significant growth potential in the AI industry. With the increasing integration of AI across various sectors, C3 AI's focus on providing enterprise AI applications is poised for continued expansion. The company's emphasis on energy, manufacturing, and healthcare sectors aligns perfectly with the heightened demand for AI-driven solutions in these industries.

Furthermore, C3 AI's strategic partnership with Alphabet, Google's parent company, is a key driver of its potential success. By harnessing the vast resources and infrastructure of Google Cloud, C3 AI gains a competitive edge in developing and deploying innovative AI applications. This collaboration not only bolsters its technological capabilities but also enhances its market reach and access to potential clients.

Thus, investing in C3 AI offers a unique opportunity to gain exposure to various industries and their growing use of AI, making it a wise choice for investors seeking long-term growth potential with a promising outlook.

8. KLA (KLAK)

KLA Corporation (KLAK) is a noteworthy player in the field of artificial intelligence, making it a worthy addition to our list of the best AI stocks to consider in 2023. As a leading provider of process control and yield management solutions for the semiconductor and electronics industries, KLA is at the forefront of leveraging AI for improved efficiency and performance.

One of KLA's standout features is its ability to integrate AI into its inspection and measurement systems. This application allows semiconductor manufacturers to detect and address defects in real time with remarkable precision. This precision is essential in an industry where even the tiniest imperfections can lead to costly production errors.

Furthermore, KLA has demonstrated a strong commitment to innovation and research in AI technologies. They have made strategic acquisitions and investments in AI startups, positioning themselves to capitalize on the growing demand for AI-driven solutions.

Investing in KLA offers exposure to AI's application in semiconductor manufacturing, a sector that continues to thrive with the increasing demand for advanced electronics. While it may not be a pure-play AI company, KLA's involvement in the AI ecosystem, combined with its strong industry presence, makes it an intriguing choice for investors looking to benefit from the AI revolution in 2023.

9. Symbotic Inc (SYM)

Symbotic Inc. (SYM) operates in a unique niche of the AI industry, focusing on robotics and automation in the logistics and supply chain sectors. As the world continues to embrace e-commerce and the demand for efficient and cost-effective distribution systems grows, Symbotic's AI-driven solutions become increasingly relevant.

This company's key strength lies in its ability to transform warehouses and distribution centers with advanced robotic systems. These systems leverage artificial intelligence to optimize inventory management, order fulfillment, and transportation, resulting in reduced operational costs and enhanced productivity. Their autonomous robots can navigate complex, multi-dimensional spaces, making them ideal for modern, high-capacity fulfillment centers.

With the global logistics industry facing unprecedented challenges and a constant need for improved efficiency, Symbiotic’s AI-powered solutions are well-positioned for significant growth. As they continue to expand their footprint and collaborate with major players in the supply chain industry, Symbotic offers investors a unique opportunity to capitalize on the AI revolution's impact on logistics and warehousing.

10. Synopsys (SNPS)

Synopsys (SNPS) is a leading player in the artificial intelligence industry, making it a compelling choice among the top AI stocks to consider for investment in 2023. This company specializes in providing electronic design automation (EDA) software and hardware for semiconductor design and manufacturing, which plays a crucial role in the development of AI chips and systems.

Synopsys has been a key enabler in the advancement of AI technologies by offering tools and solutions that help semiconductor companies design and optimize AI-focused hardware. Their EDA software and IP offerings are instrumental in creating high-performance, energy-efficient chips that power AI applications, from autonomous vehicles to deep learning algorithms.

As the demand for AI accelerates across various industries, the need for cutting-edge semiconductor designs grows in tandem. Synopsys is well-positioned to benefit from this trend, as they continue to innovate and adapt their tools to meet the evolving requirements of AI developers and chip manufacturers.

Investing in Synopsys provides exposure to the foundational technology that underpins AI growth, making it an essential addition to any AI-focused investment portfolio. While the AI sector may appear focused on end-user applications, Synopsys's role in shaping the AI hardware landscape should not be underestimated, making it a valuable choice for investors looking to ride the AI wave in 2023.

What are the factors that significantly affect the price of stocks?

Stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to supply and demand at that point in time in the market.

Are investments in artificial intelligence profitable?

Yes. AI is one of the fastest-growing aspects of the market today, with a compound annual growth rate of 37%. With the excitement that ChatGPT has triggered in the market, there is a good chance that AI stocks will not only do well in 2023 but are also good long-term stock investments. For instance, most AI stocks were in the green when we published this article.

Best brokers to buy AI stocks

RoboForex

RoboForex Review

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RoboForex is one of the leading brokers globally, offering a wide range of financial trading instruments, including forex. With small spreads and leverages up to 1:2000, it offers some of the most competitive currency pairs (over 40).

RoboForex is particularly ideal for automated trading, i.e., copy trading, as it implements trading strategies almost instantaneously. The company has a reliable infrastructure that delivers good speed. Pair that with price alerts, and you have yourself a platform you may actually make profits off.

The broker uses MT4, MT5, and Web Trader platforms. It also provides negative balance protection, which is one way to mitigate risk in automated trading.

DEGIRO

DEGIRO Review

DEGIRO is a Dutch investment company operating since 2008. The broker has been providing online services since 2013. Today DEGIRO is headquartered in Amsterdam and has offices in 18 European countries. Its activities are controlled by the Financial Conduct Authority (FCA), as well as regulators in the Netherlands: Financial Markets Authority (AFM) and Central Bank (DNB). DEGIRO was awarded over 86 international awards: financial publications of Germany, France, Denmark, and the Netherlands have repeatedly recognized the company as the best stock market broker.

Interactive Brokers - Best for Active Stock Trading

IBKR Review

The Interactive stock brokers platform is an online stock trading platform with many tradable securities and low margin rates. The platform belongs to Interactive Brokers Group, Inc. The platform's IBKR Lite version provides ETFs and commission free trades on stock. The Interactive brokers platform is attractive to active trading members who often have low per-share pricing.

Unlike most brokers, Interactive Brokers doesn’t charge annual fees, account transfer fees, or closing fees. Stock trade commissions start at $1 and go up to 1% of the total value of the trade, plus exchange and regulatory fees.