12 Best Artificial Intelligence (AI) Stocks To Buy According to Analysts

Published on February 3, 2024 at 12:02 pm by Ramish Cheema in News

In this piece, we will take a look at the 12 best artificial intelligence stocks to buy according to analysts. If you want to skip our overview of the latest trends in the world of AI, then you can take a look at the 5 Best Artificial Intelligence (AI) Stocks To Buy According to Analysts.

When it comes to AI, the rapid rise in prominence of the technology is quite striking. If we rewind the hands of time to mid 2022, then few people would be regularly talking about the technology, and media coverage would be limited to a handful of players such as the firm behind ChatGPT, OpenAI. Yet, in just a year, AI is at the forefront of the media, investor, and even government attention as the advances in decision making offered by data science enable organizations to upscale their operations.

Since it led the stock market to rise in 2023, AI is naturally at the front of attention in 2024 as well. The first two months of a year are particularly important for markets as they provide them with the perfect data to set the tone for the rest of the year. These come in the form of earnings reports, and for the Q1 2024 earnings season, all that anyone can talk about is AI. The year started off with the Taiwan Semiconductor Manufacturing Company (NYSE:TSM) assuring investors during its earnings call that it was in a stable position to capture any growth in the demand for AI chips. Its CEO C.C. Wei shared that TSMC is working with all the major players in the global A.I. industry, as he shared:

The surge in AI-related demand in 2023 supports our already strong conviction that the structural demand for energy-efficient computing will accelerate in an intelligent and connected world. TSMC is a key enabler of AI applications. No matter which approach is taken, AI technology is evolving to use more complex AI models, as the amount of computation required for training and influence is increasing. As a result, AI model need to be supported by more powerful semiconductor hardware, which requires use of the most advanced semiconductor process technologies. Thus, the value of TSMC technology position is increasing and we are well-positioned to capture the major portion of the market in terms of semiconductor component in AI.

To address unassessable AI-related demand for energy-efficient computing power, customers rely on TSMC to provide the most leading-edge processing technology at scale with a dependable and predictable cadence of technology offering. At the same time, as process technology complexity increased the engagement lead time with customer also started much earlier. There is almost all the AI innovators are working with TSMC and we are observing a much higher level of customer interest and engagement at N2 as compared with N3 at a similar stage from both HPC and the smartphone applications. Our 2-nanometer technology will adopt narrow sheet transistor structure and be the most advanced semiconductor technology in the industry in both density and energy efficient when it is introduced in 2025.

After TSMC, it was Intel Corporation (NASDAQ:INTC)’s turn. The world’s largest chip designer and manufacturer, Intel has struggled to keep up the pace with the industry’s upgrade cycles and is now aggressively targeting rapid iteration and mass production of advanced semiconductor fabrication process node technologies. Leading the charge is Intel’s CEO Patrick Gelsinger, who highlighted that not only can AI become an industry that drives a “$1 trillion semiconductor TAM [TOTAL ADDRESSABLE MARKET] by 2030,” but also confidently asserted that “given our foundry and product offerings, we’re the only company able to participate in 100% of the TAM for AI Silicon logic.“

Shifting from the hardware side of the AI industry to the software, the next duo up on the earnings stage came in the form of Microsoft Corporation (NASDAQ:MSFT) and Alphabet Inc. (NASDAQ:GOOG). As rapidly changing as AI is, if there’s one thing that can be said with certainty about the software segment of artificial intelligence companies and stocks, it’s that Alphabet and Microsoft sit right at the top of the global AI food chain that some estimates say has as many as 57,000 companies. Of course, the definition of an ‘AI company’ depends on whether you also include companies that use AI for their business processes as well as counting others who make the hardware and software. Yet, even if we include the former bunch, Alphabet and Microsoft are still likely to come out on top since their deep expertise in all things data science naturally provides them with a competitive advantage.

Alphabet CEO Sundar Pichai led with AI and aimed right for the money when he explained during the firm’s earnings call for the fourth quarter that it is heavily invested in improving Search results with AI. These announcements came even as Google’s advertisement revenue failed to impress investors and led to a post earnings share price drop. Like Pichai, Microsoft’s Satya Nadella also talked about AI as he shared that the company had evolved from “talking about AI” to “applying AI to scale.”

So, as AI continues to remain the topic in technology and finance, we decided to see what AI stocks analysts believe are worth watching out for. Some top picks are The Trade Desk, Inc. (NASDAQ:TTD), Western Digital Corporation (NASDAQ:WDC), and Microchip Technology Incorporated (NASDAQ:MCHP).

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Our Methodology

To make our list of the best artificial intelligence or AI stocks to buy according to analysts, we used the holdings of the Invesco AI and Next Gen Software ETF and ranked the firms by their average analyst share price target upside. The top stocks were chosen as the best AI stocks.

For these best artificial intelligence stocks according to analysts, we have also mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

Best Artificial Intelligence (AI) Stocks To Buy According to Analysts

12. Alphabet Inc. (NASDAQ:GOOGL)

Average Analyst Share Price Upside: 3%

Average Analyst Share Price Target: $156.52

Alphabet Inc. (NASDAQ:GOOGL) is one of the biggest players in the AI industry and an example of how a company can lead in a sector and still not need to make money from it. Alphabet Inc. (NASDAQ:GOOGL)’s biggest business is its search engine, and during the firm’s latest earnings call, CEO Sundar Pichai was quick to comment on how his firm is using AI to improve Google Search results.

For their third quarter of 2023 shareholdings, 221 out of the 910 hedge funds covered by Insider Monkey’s research had held a stake in Alphabet Inc. (NASDAQ:GOOGL). Out of these, the firm’s biggest hedge fund investor is Ken Fisher’s Fisher Asset Management with a $5.7 billion investment.

Alphabet Inc. (NASDAQ:GOOGL) joins The Western Digital Corporation (NASDAQ:WDC), Trade Desk, Inc. (NASDAQ:TTD), and Microchip Technology Incorporated (NASDAQ:MCHP) in our list of the top AI stocks according to analysts.

11. Equinix, Inc. (NASDAQ:EQIX)

Average Analyst Share Price Upside: 4%

Average Analyst Share Price Target: $871.86

Equinix, Inc. (NASDAQ:EQIX) is a real estate investment trust that works with companies to set up their network and data centers. This means that the firm has exposure to potential growth in AI computer facilities. The shares are rated Buy on average, and Equinix, Inc. (NASDAQ:EQIX) secured upgrades from Truist and Wolfe Research in January 2023.

As of Q3 2023 end, 42 out of the 910 hedge funds part of Insider Monkey’s database were the firm’s shareholders. Equinix, Inc. (NASDAQ:EQIX)’s largest stakeholder among these is Philippe Laffont’s Coatue Management through its $457 million stake.

10. ANSYS, Inc. (NASDAQ:ANSS)

Average Analyst Share Price Upside: 4%

Average Analyst Share Price Target: $345.56

ANSYS, Inc. (NASDAQ:ANSS) is an engineering software company that enables engineers to design and develop complex products. This provides it with a key area to utilize AI in, and on this front, ANSYS, Inc. (NASDAQ:ANSS) announced in January 2024 that its Ansys SimAI software uses generative AI to expand access to users with limiting coding or programming language.

For their September quarter of 2023 shareholdings, out of the 910 hedge funds tracked by Insider Monkey, 32 had invested in ANSYS, Inc. (NASDAQ:ANSS). Ian Simm’s Impax Asset Management was the biggest investor as it owned 640,715 shares that are worth $190 million.

9. Marvell Technology, Inc. (NASDAQ:MRVL)

Average Analyst Share Price Upside: 5%

Average Analyst Share Price Target: $72

Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor firm that enables chip manufacturers to design and test their products. Its shares are rated Strong Buy on average, and the firm can benefit from any growth in global semiconductor manufacturing capacity due to AI demand.

By the end of last year’s third quarter, 57 out of the 910 hedge funds covered by Insider Monkey’s research were Marvell Technology, Inc. (NASDAQ:MRVL) shareholders. Out of these, the largest stakeholder was David Goel and Paul Ferri’s Matrix Capital Management courtesy of its $712 million investment.

8. AMETEK, Inc. (NYSE:AME)

Average Analyst Share Price Upside: 7%

Average Analyst Share Price Target: $177.23

AMETEK, Inc. (NYSE:AME) is an engineering products company headquartered in Berwyn, California. While AI has become popular in 2023, the firm has been working with the technology for more than four years now. AMETEK, Inc. (NYSE:AME)’s precision electronics have been powering up deep learning servers since 2019, and have laid the path to generative AI that’s on its way to becoming commonplace now.

Insider Monkey dug through 910 hedge funds for their September quarter of 2023 shareholdings and found that 38 had bought a stake in the company. AMETEK, Inc. (NYSE:AME) ‘s biggest hedge fund shareholder is Phill Gross and Robert Atchinson’s Adage Capital Management as it owns $159 million worth of shares.

7. Snowflake Inc. (NYSE:SNOW)

Average Analyst Share Price Upside: 7%

Average Analyst Share Price Target: $220.79

Snowflake Inc. (NYSE:SNOW) is a cloud computing company whose analytical business model stands to be one of the biggest beneficiaries of any advancements in AI. The firm has been doing well on the financial front as of late since it has beaten analyst EPS estimates in all four of its latest quarters.

As of September 2023 end, 71 out of the 910 hedge funds covered by Insider Monkey’s research were Snowflake Inc. (NYSE:SNOW)’s investors. Brad Gerstner’s Altimeter Capital Management was the largest investor through its $2.3 billion stake.

6. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Average Analyst Share Price Upside: 8%

Average Analyst Share Price Target: $405.59

Intuitive Surgical, Inc. (NASDAQ:ISRG) is a robotics company that enables surgeons to use surgical medical assistants during their operations. It seeks to use AI to improve surgical decision making, and despite a commanding position in its market, Intuitive Surgical, Inc. (NASDAQ:ISRG) is racing to launch its new surgical robot as soon as the FDA gives the go ahead.

78 out of the 910 hedge funds profiled by Insider Monkey during Q3 2023 had invested in the robotics company. Intuitive Surgical, Inc. (NASDAQ:ISRG)’s biggest shareholder is Ken Fisher’s Fisher Asset Management as it owns 4.4 million shares that are worth $1.2 billion.

The Trade Desk, Inc. (NASDAQ:TTD), Intuitive Surgical, Inc. (NASDAQ:ISRG), Western Digital Corporation (NASDAQ:WDC), and Microchip Technology Incorporated (NASDAQ:MCHP) are some AI stocks that analysts cannot stop gushing about.

Click here to continue reading and check out 5 Best Artificial Intelligence (AI) Stocks To Buy According to Analysts.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on December 13, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

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Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

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This is the #1 Gold Stock for your 2025 watch list

Published on December 16, 2024 at by Insider Monkey Staff

Brace yourself.

There’s no question that thanks to Washington’s disastrous policies – and out-of-control spending – the outlook for the U.S. economy now appears dire.

And with the U.S. national debt now rising by a staggering $1 trillion every 100 days…there are no easy solutions to help get the nation back on track.

While Jay Powell and the Biden-Harris White House sweat out a federal debt that has reached $35.5 trillion – and climbing – many investors have raced to the sidelines with their cash.

But the truly savvy investors laugh while Jay Powell frets, because they understand that this ridiculous spending has also triggered a nearly unprecedented bull market for gold.

Just look at this chart for the yellow metal.

After testing the $2,000/ounce mark in August 2020 and February 2022, gold traded down to near $1,600/ounce in October 2022.

Since then, gold prices have been on an absolute tear and currently sit above $2,600/ounce, a $1,000/oz increase in just two short years.

But the surge in gold prices that we’ve seen over the past few years could pale in comparison to what’s on the horizon. As shocking as it may sound, with no end in sight for the Fed’s money printing, we could see the price of gold increase by many multiples in the years ahead.

With soaring inflation, the dollar stands to lose more and more of its value, which means you’ll need a lot more dollars to buy gold.

According to legendary investor Peter Schiff, today’s seemingly-high gold price of $2,600/oz. “could soar to $26,000/oz. — or even $100,000/oz. There’s no limit because gold isn’t changing — it’s the value of the dollar that’s decreasing.”[i]

Meanwhile, as profitable as gold has been, select gold mining stocks have really kicked into high gear, handing investors even bigger profits.

Click to continue reading…

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