2023 was the year that artificial intelligence (AI) stocks exploded. All as the emergence of generative AI and large language models propelled artificial intelligence into the mainstream. Nowadays, 2024 is shaping up to be a continuation of the massive growth experienced in 2023, which is great news for some of the best AI stocks on the market.
While investors fear that the artificial intelligence hype may be overblown, there’s still plenty of reason to remain bullish. After all, artificial intelligence is just starting to change life as we know it — another solid catalyst for some of the best AI stocks.
Let’s look at seven of the best AI stocks that could double this year.
By far, one of the best AI stocks to own is Nvidia (NASDAQ:NVDA). At the moment, it trades for about $625, with a target price of $1,100. That’s less than double, but it did start the year at $481.68.
Nvidia showed investors in 2023 that analysts – even bullish ones – underestimate its potential. All of 2023 was marked by extraordinary earnings beats from Nvidia. For example, in each of the last three quarters beginning in April of 2023, the company produced EPS and revenue results that exceeded estimates by double-digit percentage margins.
Nvidia benefits from having the largest and most capable supply chain in the AI industry per its admission. Yet despite its strengths, it continues to struggle to fulfill demand for its AI chips. That has led to incredibly high prices for its products. and with its h200 chips scheduled to be launched this year, that beneficial business mix is likely to persist. Those strong Dynamics continue to suggest that NVDA shares have all the potential to double this year.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) Is Nvidia’s primary challenger for the booming demand across enterprises for AI chips.
Recently, it was revealed that Microsoft and Meta Platforms (NASDAQ:META) gobbled up 60% of the 500,000 chips sold by Nvidia. Those firms are on record stating that they will switch to AMD as their chip provider. AMD’s M1 mi300x chips give the company a real shot at dethroning Nvidia and will certainly chip away at its lead if nothing else.
CEO Lisa Su believes in the continued opportunity in AI data centers. She sees the opportunity ballooning to $400 billion by 2027. According to NewStreet analyst Pierre Ferragu, even if that opportunity only reaches $200 billion, it could result in a tripling quadrupling of AMD’s price.
If rapid AI data center adoption continues to materialize, many believe AMD is the strongest way to benefit from that growth. Whether that results in a doubling of share price in 2024 remains to be seen But the future is indeed very bright for AMD.
Artificial intelligence continues to fundamentally change the future of workplace productivity. UiPath‘s (NYSE:PATH) software helps enterprises to streamline repetitive tasks. For example, RPA technology helps to reduce the time required when filling out a repetitive legal document as one example.
The company is particularly well regarded because its fundamentals are improving as demand for its technology grows. During the third quarter, revenues increased by 24% to $326 million. Sales are expected to increase to approximately $386 million during the fourth quarter.
Moving forward, generative AI is likely to play an increasing role in UiPath’s growth. The company will continue to grow and challenge other software firms including Salesforce (NYSE:CRM). When it comes to workplace automation and efficiency increases, UiPath is definitely a name to consider in 2024 and beyond.
SoundHound AI (SOUN)
SoundHound AI (NASDAQ:SOUN) is a stock to consider for. conversational AI.
Conversational AI refers to voice recognition tools that have wide application in industries from automobiles to fast food to banking and more. The company has partnered with firms across many of those Industries including Stellantis (NYSE:STLA), for example. Its technology is also used across the fast food industry with partners across many smaller but well-known brands.
Shares currently trade for $1.75 and have a low target price of $3.60. Those prices range to a high of $5 so there’s some real potential in SoundHound AI. The topic of conversational AI as an investment opportunity will continue to grow particularly because it has such important implications for firms.
Palantir (NYSE:PLTR) doubled throughout 2023 and continues to be a stock to watch in 2024.
Sure, Palantir continues to be maligned by much of the investment world. Specifically, Jefferies believes that the AI hype surrounding the firm is overblown. That assertion led it to downgrade its target price for Palantir to $13.
However, PLTR has plenty of bulls on its side, too. Many note the company has been delivering several quarters of profitability. Plus, its AI tools are being used by the U.S. military and government, which should continue to serve as a strong catalyst moving forward.
Microsoft (NASDAQ:MSFT) rocketed from $250 to $400 over the last 12 months. Forecasts suggest that those prices could rise to $600 throughout 2024. That is of course not a 100% return, and instead closer to 50%.
However, Microsoft has emerged as one of the leading two AI firms overall and it’s hard to discount it and its continued potential. The markets aren’t particularly impressed by the company’s fourth quarter earnings release. However, 18% Top Line growth is impressive particularly in consideration of Microsoft’s size.
CEO Satya Nadella notes that the company has implemented AI throughout its tech stack. Perhaps more importantly, Microsoft’s Cloud revenue increased by 24% during the quarter.
The marriage between cloud computing and artificial intelligence is of particular interest to investors and those interested in the wider economy. Microsoft’s Azure Cloud is one of the biggest competitors in that regard. The company is incredibly strong in AI Cloud applications and will continue to thrive due to its early investment in OpenAI.
Baidu (NASDAQ:BIDU) is China’s leading internet search provider and as such often draws comparisons to Google (NASDAQ:GOOG, GOOGL). Both firms continue to invest heavily in AI. That investment promises to result in stronger share prices for both moving forward.
In fact, Baidu’s AI investment is already bearing fruit. In the third quarter, the company provided unexpectedly strong results due to AI. Sales and earnings were higher than expected which was particularly welcomed by the firm given the slowdown currently affecting the Chinese economy.
Company management reiterated what so many other tech firms are stating in regard to AI: it will continue to invest heavily in generative AI in order to build out its artificial intelligence platform’s capability.
As negative sentiment continues to swirl over Chinese stocks Baidu has emerged as a strong contrarian opportunity. China’s tech leaders are very analogous to those in the United States. both will continue to seize the opportunity in AI through massive investment. That investment should help those large leading firms further consolidate their dominance over their respective geographies.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.