Skip to content

Buy alert: 2 AI stocks with ‘strong buy’ ratings for June 2024

Buy alert 2 AI stocks with ‘strong buy’ ratings for June 2024
Aneena Alex

The excitement surrounding artificial intelligence (AI) and its wide-ranging applications has been a major driver of the stock market rally this year. Conservative estimates place the market value of generative AI at around $1 trillion, with some projections even higher.

Companies at the forefront of AI technology, especially those providing semiconductors and servers, have experienced a surge in demand, significantly boosting their stock prices. 

This trend shows no signs of abating, making it a compelling time to consider AI-focused investments. Moreover, Wedbush anticipates that AI-related spending will constitute about 8% to 10% of IT budgets in 2024.

AI boom shows no signs of slowing down

AI’s influence extends beyond traditional tech companies. For example, Apple (NASDAQ: AAPL)  has recently embraced the AI boom, introducing new AI features, including upgrades to Siri, integration with OpenAI’s ChatGPT, and new writing assistance tools. This move shows  Apple’s commitment to leading AI innovation and highlights the pervasive impact of AI across various sectors.

Additionally, AI is transforming industries such as real estate investment trusts (REITs) that own data storage facilities. This widespread integration of AI technologies across diverse industries shows the sustained momentum in AI investment.

Nvidia’s market cap milestone

Nvidia (NASDAQ: NVDA)  has been at the forefront of the AI revolution, briefly becoming the world’s most valuable company by market capitalization. On June 18, 2024, Nvidia’s market cap reached an impressive $3.3 trillion, surpassing industry giants Microsoft (NASDAQ: MSFT) and Apple.

Although its market cap has since adjusted to about $3.1 trillion, this rapid growth highlights the significant impact of the AI boom and solidifies Nvidia’s position as a critical player in the AI market.

Nvidia’s recent rally prompted Finbold to look into the fundamentals and analyst ratings of its alternatives to determine stocks that show potential buy opportunities.

AI stocks with ‘strong buy’ ratings

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ: AMD)  has emerged as a top contender in the AI sector, earning a strong buy rating from numerous analysts. Analysts at Citi (NYSE: C) project that AMD could capture approximately 10% of the data center GPU market, valued at around $15 billion. 

AMD’s robust growth projections are bolstered by increasing demand for data center infrastructure. AMD’s AI chip sales are expected to reach about $4 billion this year, up from $3.5 billion projected in January, reflecting the surging demand for AI applications.

Under the leadership of CEO Lisa Su, AMD has significantly enhanced its competitive edge. Since taking over in 2014, Su has spearheaded the development of groundbreaking products such as Ryzen PC processors and Epyc server chips.

These innovations have positioned AMD ahead of Intel (NASDAQ: INTC) in several key areas, particularly in producing CPUs with smaller node sizes, leading to better speed and performance.

AMD’s growth is further supported by its expanding market share in CPUs for PCs and servers. According to Mercury Research, AMD’s unit share of PC processor sales increased to 20.6% in the first quarter, up from 17% a year earlier. Its share of the lucrative server CPU market rose to 23.6%, reflecting its competitive strength and market acceptance. 

Wall Street’s AMD  stock 12-month price target. Source: TipRanks

The current 12-month average price target for AMD stands at $191.03, with high estimates reaching up to $235 per share with a ‘Strong Buy’ rating  according to Wall Street analysts.

Micron Technology (MU)

Micron Technologies (NASDAQ: MU) stands out as another AI stock with strong buy ratings, benefiting from the AI boom and its strategic positioning in the semiconductor industry. Bank of America recently included Micron in its US 1 List, emphasizing its potential as a top investment pick. 

Micron has experienced significant stock price appreciation, rising from approximately $90 to $153.34 since March. Despite this surge, analysts suggest waiting for a pullback before investing, as the stock is currently considered overbought.

Micron’s growth prospects are closely tied to the expanding “Edge AI” market, where AI capabilities are integrated into on-device applications for phones and PCs. This trend offers several advantages, including faster performance, personalization, privacy, and reduced AI inferencing costs and energy demands.

Micron’s position in the high-bandwidth memory market is a key factor driving its investment appeal. The company is well-positioned to meet the growing demand for memory products essential for AI applications. Analysts are particularly bullish on Micron’s prospects due to its innovative approach and strategic market positioning. 

Wall Street’s MU stock 12-month price target. Source: TipRanks

The average price target for Micron is $150.58, with high estimates reaching $200 with a ‘Strong Buy’ rating according to Wall Street analysts

As AI technologies continue to transform various industries, these companies are well-positioned to capitalize on the expanding market, making them compelling options for investors looking to tap into the AI boom.

Buy stocks now with eToro – trusted and advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.