Unlocking the Potential of Artificial Intelligence: Top AI Stocks to Watch in 2024
In the world of investing, staying ahead of the curve is essential for success. For those looking to capitalize on the growing trend of artificial intelligence (AI), there are exciting opportunities on the horizon. According to experts at Morgan Stanley, buying stocks with a rising exposure to AI could lead to significant outperformance later this year.
The AI revolution has been a driving force behind the current bull market rally, with companies like Nvidia leading the charge. Year to date, shares of Nvidia have surged 142%, following a 239% increase in 2023. But if you’ve missed out on the AI trade so far, don’t worry – it’s not too late to get in on the action.
Morgan Stanley’s team of strategists, led by Edward Stanley, have identified a group of stocks they call “the enablers” – companies where AI is beginning to play a larger role in their business. These core-to-thesis enablers have been outperforming moderately exposed enablers, returning over 100% since January 2023.
One standout company on Morgan Stanley’s list is First Solar, a solar technology firm whose shares have soared 59% this year. Analysts are bullish on the stock, with both Morgan Stanley and Goldman Sachs reiterating buy ratings. With potential tailwinds supporting higher average selling prices, First Solar is poised for continued growth.
Another AI enabler highlighted by Morgan Stanley is Broadcom, a semiconductor manufacturer that has seen a 25% rally this year. Analysts are also optimistic about Broadcom, with the average consensus price implying a 10% upside. Bernstein Research named Broadcom one of its best ideas, citing its strong AI portfolio and leadership in key segments.
Meta Platforms, the parent company of Facebook and Instagram, is also on Morgan Stanley’s radar as an AI enabler. Shares of the social media giant have risen nearly 41% this year, and analysts see further upside potential. With a leadership position in foundational GenAI building blocks, Meta Platforms could be a top pick for investors looking to capitalize on the AI trend.
Overall, investing in AI enablers could be a lucrative strategy for the remainder of 2024. As the AI revolution continues to shape the market, staying ahead of the curve with these top stocks could lead to significant outperformance. Keep an eye on companies like First Solar, Broadcom, and Meta Platforms as they harness the power of artificial intelligence for future growth.
At Extreme Investor Network, we’re dedicated to providing valuable insights and opportunities for investors looking to make informed decisions in today’s dynamic market. Stay tuned for more updates and expert analysis on the latest trends in investing.