Leading artificial intelligence (AI) stocks have surged in value over the previous year and produced amazing gains. It looks likely that this trend will continue in 2024. 

Why is this happening? 

Simply explained, this is a result of companies across all sectors developing business efficiency or enhancing the performance of their products with new AI technologies. According to Forbes, the worldwide AI market is expected to expand at a compound annual growth rate of 37.3% between 2023 and 2030. 

In light of this, investors should position themselves to benefit most from the AI revolution by purchasing stocks in the market of AI leaders today. In this article, we will cover the top 5 AI stocks to invest in 2024 and we will explain to you why investing in these very resourceful, market-leading businesses is a terrific idea if you want to take advantage of AI advancements this year.

Oracle Corporation (NYSE: ORCL)

Oracle Corporation (NYSE: ORCL) saw a 30% increase in share price in 2023, resulting in strong profits for investors. With businesses looking to use generative AI for efficiency and productivity, this company seems to be the greatest artificial intelligence stock to purchase in 2024. Oracle's AI products and services are designed to help companies automate tasks, improve decision-making, and gain insights into their data.

As of the conclusion of the September quarter, they had signed more than $4 billion in contracts to sell its AI training capacity in the Generation 2 cloud, more than tripling the amount inked the year before. For the December quarter, Oracle Corporation (NYSE: ORCL) predicts a 29% to 31% increase.

 

Nvidia (NASDAQ: NVDA)

Nvidia made it to the list this year too! The AI revolution is centered on Nvidia's (NASDAQ: NVDA) graphics processing unit (GPU) technologies. The market leader in semiconductors holds almost 90% of the market for powerful GPUs, which are used to power AI applications, data centers, and other forms of accelerated computing. Due to strong demand and the company's recent entry into an amazing new AI-powered growth phase, it has been the best-performing stock over the past year.

In addition to a rock-solid demand outlook for its GPUs, Nvidia is building out its software business and offering AI computing as a service. Profits are expected to continue, with its hardware serving as an essential component in the advancement of AI and new commercial efforts being ready to bring in significant sales growth and high margins.

 

Amazon (NASDAQ: AMZN)

While most of Amazon's (NASDAQ: AMZN) revenue comes from its e-commerce business, the large majority of its profits come from Amazon Web Services (AWS). Sales growth for Amazon's fastest-growing business segment may begin to reaccelerate as a result of the anticipated spike in demand for cloud infrastructure and other technologies that support AI applications.

However, AI is probably going to drive even bigger improvements for the company's online store. The online retail industry may witness significant gains in margin as a result of AI technology enabling more automated manufacturing processes and self-driving delivery vehicles. If this takes place Amazon's enormous e-commerce revenues might skyrocket, driving extraordinary gains for the stock.

Alphabet (NASDAQ: GOOGL)

Because of the range of products it offers and the vast amounts of useful data it has access to, like other major tech companies, has a significant advantage in AI. 

Between its market-leading search and mobile operating system (OS) technologies, fast-growing cloud infrastructure business, communication and productivity software, and YouTube streaming platform, Alphabet has many avenues to win in AI. On another note, this leading software business is also an expert in autonomous car technology through its Waymo business and is set to benefit from enormous rewards as AI-powered self-driving technology advances.

This stock seems to be a fantastic choice for investors looking for growth at a fair price because of its many AI profit opportunities and affordable stock prices.

 

Meta Platforms (NASDAQ: META)

AI-enhanced content feeds, ad targeting, and cost-saving efficiency initiatives are powering a major resurgence for Meta. The company's revenue increased by 23% year over year to exceed $34.1 billion in the third quarter. The leader in social networking concluded the year with an astounding 3.05 billion members across Facebook, Instagram, WhatsApp, and other platforms, and its earnings per share increased by 168% over that time.

Meta is still in the early phases of monetizing chatbots and utilizing AI to further its metaverse vision, but it should be able to achieve more AI-driven victories with its content feeds and ad platforms. With its extensive global user base, data accessibility, and sophisticated technological resources, the business is well-positioned to continue achieving sustained success.

Conclusion

Each of these companies demonstrates a commitment to leveraging AI across diverse sectors, from cloud services to social networking, signaling the potential for continued growth and innovation. However, while these stocks present exciting opportunities in the AI realm, investors should conduct thorough research, considering their risk tolerance and long-term investment goals before making decisions.