7 Cutting-Edge Tech Stocks That Will Define 2024

After the massive gains artificial intelligence companies saw in 2023, there are additional gains to realize by investing in AI in 2024. You can use the Portfolio Grader to find the best AI stock picks for the new year.

The AI space will be worth roughly $207.9 billion in 2023. That’s a huge number. But when you look ahead you see it’s only a drop in the bucket. But by 2025, AI should be a $420.4 opportunity, doubling in just two years. By 2030, we’re looking at a projected $1.84 trillion market size for AI.

Clearly, there are massive opportunities in investing in these AI stock picks. Artificial intelligence is a disruptive technology that is changing how the world operates as we speak.

There are great AI stock picks across the board in customer service and healthcare, or transportation, manufacturing and finance. Companies are scrambling to incorporate AI into their platforms to operate more efficiently, automate processes and serve customers better.

AI also leads to even more transformative technologies such as robotics, the Internet of Things, machine learning and blockchain.

There are hundreds of companies that either have or are developing AI processes. But the Portfolio Grader is your best option to pick those that have the best chance to profit in 2024. These are seven stocks that are highly ranked as we head into 2024.

Nvidia (NVDA)

Any list of AI stocks to buy for 2024 has to start with Nvidia (NASDAQ:NVDA). The Wall Street darling soared in 2023, rising 237% to reach a market capitalization of $1.2 trillion. That makes Nvidia the sixth-largest company in the world by market capitalization.

Nvidia is one of the top AI stock picks because AI wouldn’t be possible today without its graphics processing chips. I mean, you could have AI, but it wouldn’t be taking the form and function that you see today.

Nvidia’s A100 chip has provided the computational power that drives many AI programs. According to Citigroup, Nvidia has roughly a 90% market share in the AI GPU market, and that’s expected to remain stable for the next couple of years.

Consider Nvidia’s massive revenue growth, up 206% in the last year, to $18.12 billion in the most recent quarter. I’m not worried at all about Nvidia topping out any time soon. It gets an “A” rating in the Portfolio Grader

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is on a good run, with the stock price up 125% this year, including a 43% charge higher since late October.

Its new Instinct MI300X accelerators look to rival Nvidia, able to handle the power required of today’s AI workloads. The MI300X series is expected to be useful for large-scale cloud computing projects.

AMD CEO Lisa Su says that the company has an adequate supply of chips on hand, with a market value of more than $2 billion. So there shouldn’t be any supply chain issues for AMD to get these chips to customers.

And there is reasonable concern that AMD stock may be fully valued at this point, I think there’s some reason for bullishness. AMD recently increased its total addressable market estimate for its AI processors from $30 billion to $45 billion. That’s a huge jump.

Earnings for the third quarter were $5.8 billion in revenue, up from $5.5 billion a year ago. Income was $299 million and 18 cents per share, versus $66 million and 4 cents per share in the same quarter last year.

AMD stock gets an “A” rating in the Portfolio Grader.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) is another huge company that’s gotten even bigger through AI. Just more than a year ago, Microsoft’s investment and partnership in OpenAI opened the world’s eyes to the potential of generative AI through ChatGPT.

The company’s partnership with OpenAI is even drawing the attention of regulators in the U.S. and the U.K., who are looking at Microsoft’s role in the firing and rehiring this fall of OpenAI founder Sam Altman.

But I’m not concerned. Nor am I overly concerned about the New York Times’ lawsuit against OpenAI and Microsoft over copyright infringement, even though Microsoft is entitled to 49% of OpenAI’s profits through its investment.

Microsoft stock is up 55% in 2023. Its revenue for the first quarter of fiscal 2024 (ending September 30, 2023) was $56.5 billion, up 13% from a year ago.

“We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers,” CEO Satya Nadella said.

MSFT stock gets an “A” rating in the Portfolio Grader.

Coinbase Global (COIN)

Coinbase Global (NASDAQ:COIN) is a top digital wallet. It allows users to buy, sell or hold 230 different cryptocurrencies and manages billions in trades of digital assets every quarter.

Coinbase uses AI and machine learning to validate users and recognize anomalies that show fraud. For instance, it uses a face-similarity algorithm that extracts faces from previously loaded IDs and compares them to new applicants.

Since scammers often use the same photo for multiple IDs, Coinbase is able to detect a forged ID more effectively.

Coinbase also has products like Coinbase Advanced, allowing users to use AI and automated strategies to trade and evaluate digital assets.

If you’re looking to invest in blockchain and cryptocurrencies without actually buying a token, there are few better choices than a company like Coinbase. COIN stock is up an astounding 420% this year, including a gain of 159% in the last three months. It gets an “A” rating in the Portfolio Grader.

Riot Platforms (RIOT)

Riot Platforms (NASDAQ:RIOT) is another way to dive into the crypto market through the back door. The Texas-based company is a top Bitcoin (BTC-USD) mining company.

It has over 95,900 miners and a hash rate of 10.7 exahashes per second (an exahash is 1 quintillion hashes, or 1,000,000,000,000,000,000 hash computations).

As a result, Riot owns and operates the largest Bitcoin mining facility in the U.S. In November alone it produced 552 Bitcoin, up from 458 in the previous month and up from 521 in November 2022.

The company now holds over 7,350 Bitcoin, and that’s after selling 540 of the tokens in November at a price of $19.6 million, up 142% from a year ago.

Riot is profiting handsomely from Bitcoin’s advance in price. It sold the tokens at an average price of $36,278 in November, up from $18,000 a year ago.

The company’s RiotX algorithm uses AI and machine learning to optimize mining and increase profits by automatically adjusting mining parameters according to network conditions and resources.

RIOT stock is up 411% this year. It gets an “A” rating in the Portfolio Grader.

Meta Platforms (META)

Meta Platforms (NASDAQ:META) is one of the biggest turnaround stories of 2023. After falling 64% in 2022, Meta jumped by nearly 200% this year and is closing in on an all-time high set in September 2021.

AI has a lot to do with it. Artificial intelligence is helping Meta monetize its mammoth Facebook and Instagram platforms. It’s rolling out products like Imagine, a standalone AI image generator. Its Meta AI product is an advanced conversational assistant that’s usable in the WhatsApp, Messenger and Instagram platforms.

It’s also launching 28 additional AI programs with their own interests and personalities, with some of them played by influencers such as Snoop Dogg, Kendall Jenner and Naomi Osaka.

While it could take some time for AI to be a serious contributor to Meta’s bottom line, this type of work could trigger some serious long-term growth for the company’s bottom line.

META stock gets an “A” rating in the Portfolio Grader.

Uber (UBER)

I love Uber (NYSE:UBER) as one of my top AI stock picks right now. The company completely transformed the tax industry by becoming the biggest and best rideshare company. Then it expanded into food delivery with its Uber Eats app.

Uber is also the newest member of the S&P 500 as it joined on December 18.

Uber uses artificial intelligence to detect crashes and guide its drivers to improve GPS. It also uses AI to help approve new driver’s licenses, improve customer recommendations on its Uber Eats app, and optimize advertisements.

Revenue in the third quarter was up 11% to $9.3 billion, and gross bookings were up 21%.

UBER stock is up 155% in 2023 and gets an “A” rating in the Portfolio Grader.

On the date of publication, Louis Navellier had a long position in NVDA and MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

The InvestorPlace Research Staff member primarily responsible for this article had a long position in NVDA. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.