AI stocks have surged in 2024, led by Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN), despite previous concerns over an economic slowdown. Nvidia’s revenue jumped 69% to $44 billion, and the stock trades at 33 times forward earnings estimates. Apple experienced a 20% decline year-to-date due to tariff threats, while Amazon is down 3% amidst similar concerns but is expected to rebound with its cost structure and Prime Day on the horizon.
Nvidia’s recent performance improved following positive earnings and optimism about potential tariff impacts. Apple’s manufacturing challenges, specifically regarding iPhone production, pose risks but also present buying opportunities. Amazon’s cloud computing unit AWS has achieved a $117 billion annual revenue run rate, positioning it well for future growth in AI technologies.
