**AI Stocks to Invest In for 2024 and Beyond: The Best Picks**
Hello readers and fellow investors! Are you looking to ride the AI wave to potential riches in 2024? Well, look no further! We’ve got the inside scoop on the three best AI stocks to invest in for the new year.
First up, let’s talk about Nvidia (NASDAQ: NVDA). This AI pioneer was on fire in 2023, with a 206% increase in revenue during their third fiscal quarter. Looking ahead, CEO Jensen Huang predicts continued growth through 2025, making Nvidia a hot semiconductor stock to watch. With their data center segment sales expected to soar, Wall Street analysts expect nearly $91 billion in revenue for next year, more than a 50% increase. Shares are trading reasonably for a stock with such potential, at 25 times earnings per share.
Next, IBM (NYSE: IBM) may not be the first company that springs to mind when you think of AI, but don’t count them out just yet. Big Blue is making waves in AI research and development, positioning themselves as an essential player in the AI game. With a dedicated development platform for enterprise-scale businesses and a $500 million investment fund for AI startups, the company is primed for gains in the AI sector. Trading at just 2.4 times trailing sales and 12.3 times free cash flow, IBM’s stock is a steal.
And finally, ASML Holdings (NASDAQ: ASML) is another top pick. While the stock underperformed compared to other AI stocks in 2023, 2024 could be its time to shine. ASML’s EUV machines were in high demand during the pandemic, resulting in a production bottleneck that stretched into this year. However, as chip stocks look ahead about a year, 2025 is predicted to be a big growth year for ASML as several new leading-edge fabs come online. With 2023 revenue growth of about 30%, it could outperform its peers going into 2025.
So, there you have it – the top three AI stocks to watch in 2024 and beyond. Which one will you invest in? Are there any other AI stocks that you have your eye on? Let us know in the comments below and let’s talk AI stocks!
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