The previous year in the stock market has allowed many investors to reap the benefits, as it brought gains. 2024 looks set to continue with good performance, especially in the tech sector, notably within the AI and semiconductor branches.
Considering last year’s performance, Finbold picked three stocks that look set to continue with their strong performance in the next 12 months.
Their shared dependence on AI forms a bond, and they place their bets on its imminent integration into numerous industries. This belief positions AI as a compelling case for investment in the foreseeable future.
Picks for you
Nvidia (NASDAQ: NVDA)
Last year has been nothing short of impressive for Nvidia (NASDAQ: NVDA), as its stock has experienced growth of over 200%, ranking it among the strongest performers in the last 12 months.
Further utilization by big names in the industry is a factor that can catalyze further growth of this stock. Mark Zuckerberg recently announced that Facebook, under the umbrella of Meta (NASDAQ: META), plans to deploy approximately 350,000 Nvidia H100s by the conclusion of 2024. This equates to an estimated aggregate computing power of around 600,000 H100 equivalents when factoring in other GPUs, per post on X from stock reporter Evan on January 21.
At the time of press, NVDA was trading at $598.73, with a gain of 0.37% since the previous closure and 6.30% in the last five trading sessions.
Advanced Micro Devices (NASDAQ: AMD)
As with its largest competitor, Advanced Micro Devices (NASDAQ: AMD), it has been one of the stronger performers in the past year, adding over 100% to its value.
The semiconductor industry and AI development are closely connected, with the companies that wish for further expansion into this domain needing to invest in the infrastructure of microchips. With the worries that Nvidia might not be able to meet supply demands, an opportunity arises for AMD.
Leading technology behemoths like Meta Platforms and Microsoft (NASDAQ: MSFT) have declared their shift towards utilizing AMD’s chips, marking a significant divergence from Nvidia’s chips. The availability of AMD’s latest AI chips offers an appealing alternative for companies opposed to enduring prolonged waiting periods associated with Nvidia chips.
At the time of press, AMD stock was trading at $168.42, posting an increase of 0.14% since the previous closure and a 6.18% gain in the last five trading sessions.
Amazon (NASDAQ: AMZN)
Delivery and e-commerce giant Amazon (NASDAQ: AMZN) had a strong 2023, adding over 60% to its stock value, thanks to the solid performance of its diverse sectors.
With its Amazon Web Services, advertising business, and Amazon Business being strong contributors to its revenue, it is no wonder AMZN wishes to expand AI applications further, and integrate it in most of its other sectors.
Likewise, the cloud computing sector exhibits favorable growth prospects due to the continuous transition to cloud services and the swift advancement of artificial intelligence technologies. AWS’s predominant market share strategically positions the company to leverage potential demand for established storage and computing services, while concurrently introducing innovative features and products aligned with emerging technologies.
At the time of reporting, AMZN stock was trading at a price of $157.80 rising 1.14% since the previous closure, and adding 3.21% in the last five trading sessions.
The ongoing hype and increased demand for AI-based services and industries seems to be in a full swing, without any signs of slowing down. With these stocks basing their success on these factors, or looking to expand into the sector (Amazon) they look poised to lead the industry.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
