Investing in AI stocks gives the same rush as seeing a historic sporting event – anticipation, excitement, and of course, the thrill of potential victory. The year is February 2024, and the quest for the best AI stocks unfolds against a backdrop of accelerated technological revolution. The companies making the cut are pioneering tech that promises to shake up daily life and the way work gets done. Here’s a closer look at three top contenders to ride the AI wave.
Nvidia (NVDA): The Unstoppable Force in AI
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Nvidia Corporation (NASDAQ:NVDA) stands at the frontier of AI with its powerful GPUs. The A100 and the revolutionary H100 Tensor Core GPU are the bedrock for training advanced artificial intelligence models. In particular, the H100’s Hopper architecture brings scalability and computing efficiency crucial for massive AI workloads. As a result, government bodies and cloud services are queuing up for this cutting-edge tech, echoing good news for Nvidia stocks.
While competitors like Advanced Micro Devices (NASDAQ:AMD) vie for market share, Nvidia’s commitment to next-gen tech keeps it firmly in the lead. The recent launch of the Hopper GH200 and the upcoming Black GB200 promise even faster, more precise training of sophisticated AI models.
Yet Nvidia’s value as an AI stock goes beyond hardware offerings. Its CUDA computing software is fast becoming developers’ go-to platform for training enterprise-level AI models. Although Nvidia stock has surged more than 40% since the year’s start, it remains a formidable AI stock. Analysts predict EPS growth of 268% in FY2024 and 68% in FY2025.
With a forthcoming conference call to discuss its financial results and robust product cycles on the horizon, Nvidia looks set to reap the rewards of AI’s expanding influence across diverse industries.
Accenture (ACN): Pioneering the AI Revolution
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Accenture plc (NYSE:ACN) is at the forefront of driving enterprise AI from experimentation to real-world implementation. With a $3 billion investment in its AI division, it’s empowering customers to leverage AI for enhanced productivity.
Boasting around 1,450 AI patents with more in the pipeline, Accenture is using its expertise to assist clients across industries in scaling their operations using AI. Its specialized services focus on personalization in generative AI, giving enterprises the ability to modify foundational models to suit their specific needs.
Seeing impressive results, recent sales figures for generative AI reached $300 million last year and have already surpassed $450 million in bookings this year. With plans to double its AI specialist workforce to 80,000, Accenture’s distinct offerings position it well to play a pivotal role in transforming global business through generative AI.
IBM (IBM): Driving AI Innovation
The Rise of IBM Corporation: A Beacon of AI and Quantum Computing
IBM’s Strong Position in AI and Quantum Computing
IBM Corporation (NYSE: IBM) is a significant force in the provision of cloud and quantum computing solutions. With its continuous innovations in AI, IBM has developed robust AI systems such as Watson, which are extensively utilized across various industries for data analysis, natural language processing, and decision-making.
IBM’s Predictions and Financial Outlook
IBM has defied expectations by forecasting a growth of approximately 5% in its sales for 2024, excluding currency impacts. Additionally, the company anticipates generating approximately $12 billion in free cash flow this year, a remarkable feat within the industry.
Market Demand for IBM’s AI Systems
The surge in customer adoption of AI systems has driven the demand for IBM’s software and services. Remarkably, IBM’s projected free cash flow of $12 billion for 2024 has exceeded the estimates of top experts, surpassing their initial expectations of between $11 billion and $11.5 billion.
Promising Investment Opportunity
With a price-earnings ratio of 18.3, analysts believe that investors can capitalize on the current advantageous position. IBM’s promising future prospects and favorable valuation position it as one of the top AI stocks to monitor in February 2024.
On the date of publication, Joel Lim 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.
