History Shows Nasdaq Will Skyrocket in 2024: 1 Stock Split Stocks You Should Buy Before It Does

There is no doubt that 2022 will go down as one of the toughest years in Wall Street history, but the market appears to have pivoted. After falling more than 35% in 2022, Nasdaq Composite It has bounced back in 2023, up 39% so far (as of Tuesday’s market close).

Investors who study history will know that the surge will continue. It dates back to 1972, the year the Nasdaq was first traded. attache Since the market rebound, technology-heavy indices have gained an average of 19%, suggesting the current rebound is likely to continue.

Moreover, the resurgence of stock splits in recent years has led investors to take a new look at companies that have done stock splits. That’s because these moves are usually preceded by several years of solid growth. One such company is Amazon (AMZN 1.73%). The stock has risen 677% over the past decade, leading the company to split its stock in mid-2022.

Despite recent challenges, Amazon has performed strongly and next year will be no different.

Image source: Getty Images.

Is the AI ​​race overdue or decades early?

Demand for generative artificial intelligence (AI) has spread like wildfire over the past year or so, with many companies scrambling to adopt these sophisticated algorithms to reap the expected productivity windfall. These AI models can be used to draft and summarize emails, search and compress content, mine data, generate original content, and even write computer code, saving users time and increasing productivity.

Much has been said about how Amazon was late to recognize these changes and the growing demand for its technology. This is an unusual and costly miscalculation. It has also been suggested that this has allowed competitors to jump on Amazon, but this is the exact opposite of decades of evidence.

Amazon has been implementing AI across a wide range of operations for several years. It uses AI to make product recommendations to customers, predict required inventory levels for warehouses and distribution centers, assist with product inventory and delivery (using AI-powered robots), and even establish the most efficient delivery routes.

Perhaps most central to the company’s efforts is Amazon Web Services (AWS), which has long offered a variety of AI products to cloud computing customers.

To suggest that Amazon is late to the AI ​​party defies logic, and recent developments suggest that the company is putting its years of expertise in the field to good use.

Amazon’s Broad Strategy

Recently, AWS has launched AI21 Labs, Anthropic, Cohere, meta platformStability AI, etc.

Of course, there’s also Amazon’s own Titan, which offers a suite of AWS-trained AI models to support a variety of use cases. For example, Titan Image Generator can generate raw images using voice guidance, similar to OpenAI’s DALL-E. These products help bring AI to the masses by giving cloud users everything they need to develop their own AI applications.

Last month, Amazon said it would provide access to the following services: nvidia‘s latest AI chip, the H200 Tensor Core graphics processing unit (GPU). Amazon also announced new, energy-efficient Trainium2 and Graviton4 AI processors. This gives cloud infrastructure customers access to a wide range of AI choices, from high-end options to more cost-effective options. The company also introduced Amazon Q, a generative AI-powered assistant designed to automate and streamline mundane and time-consuming tasks for businesses.

In addition to its cloud unit, Amazon is providing generative AI tools to sellers on its e-commerce platform to create accurate product listings, while also rolling out AI-based image generation capabilities for customers advertising on its e-commerce platform. Amazon is also deploying generative AI to improve customer purchase recommendations and the search process. Finally, Amazon took a page from Microsoft’s AI playbook by acquiring a $4 billion minority stake in AI startup Anthropic, a rival to OpenAI, to further expand its AI footprint.

Evidence shows that Amazon is using next-generation AI to maintain or improve competitive advantage across its best-in-class businesses.

Discover all its potential at a discounted price

Despite the stock’s significant rise this year, Amazon offers plenty of opportunity for a surprisingly reasonable valuation. The stock is currently selling at approximately 2.4 times the forward selling price, which is a significant discount compared to the seven-year average selling price of 3.5 times.

This gives smart investors the opportunity to purchase the full potential Amazon has to offer at a discount.