History Shows Nasdaq Will Soar This Year: Artificial Intelligence (AI) Growth Stocks I Should Buy First

that much Nasdaq Composite The index has had a good year so far, and 2024 is just a few months away. Technology stocks that dominate the index are on the rise as investors favor growth and innovation, including artificial intelligence (AI) stocks, chip designers and technology stocks. Cloud computing player. As a result, the index hit an all-time high, confirming that it had reached a bull market.

And if history is any guide, the Nasdaq’s winning streak may not be over. Over the past six stock market rally periods starting in 1990, the Nasdaq has gained an average of 64% in the first two years of positive performance. The index is up about 43% last year and is up 8% so far this year. So if it follows historical patterns, the Nasdaq could skyrocket this year. Here are the best AI growth stocks to buy before you buy them.

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Amazon

Amazon (AMZN 2.82%) The stock is up 20% so far this year, and this top stock run may be just getting started. Because Amazon is an ideal AI stock to buy. Amazon is using the technology to improve its e-commerce operations and sells AI products and services to cloud computing service customers through its Amazon Web Services (AWS) division. So we are benefiting from AI on two fronts.

For example, Amazon uses AI to streamline fulfillment center operations and select the shortest delivery routes. This is important because it can reduce the company’s service costs.

And AWS has made it a priority to address AI needs at all levels, providing customers with basics like chips for training and inference programs as well as fully customizable large language models (LLMs) for their own use. We provide managed services. . Considering that AWS is the world’s leading cloud service provider, it already has a huge number of customers and is ready to launch AI projects.

So, it’s clear that AI can have a significant impact on Amazon’s revenue growth over time by streamlining e-commerce processes, reducing costs, and increasing AWS revenue.

Today, Amazon stock is trading at 43 times forward earnings estimates, which seems like a reasonable price, especially for a growth stock with a solid profitability picture and a compelling AI strategy.

intel

intel (INTC -2.57%) It has struggled to keep up with the AI ​​race, but recently the tide may have turned. Late last year, the chip company launched a portfolio of AI products that could improve gaming performance and drive a new era of growth. An example is the Intel Core Ultra mobile processor family, a key step in ushering in the AI ​​personal computer era. These are high-power computers that can perform many AI tasks.

Intel also announced its latest Intel Xeon processor family with AI accelerator and Gaudi 3 AI accelerator. I don’t expect these innovations to threaten the giants of the chip market. nvidia‘s leadership, but it’s okay. Considering the opportunity (the AI ​​market size is expected to exceed $1 trillion within 10 years), there is room for one or more companies to take market share and profit. Intel could be one of them thanks to its new and upcoming innovations.

In addition, Intel’s move to open its manufacturing network to others, with the goal of becoming the world’s second-largest foundry by 2030, could accelerate growth. It’s a big bet, but one that could bring big rewards down the road. Intel has already secured commitments from four customers for the 18A process and signed five advanced packaging contracts.

Intel is trading at 29 times forward earnings estimates, which factors in the company’s AI and foundry outlook and analyst estimates of double-digit annual growth over the next five years. So, Intel is poised for a rebound and now is an ideal time to jump into the tech giant.