In this article, we'll take a look at 10 AI stocks that are skyrocketing. If you want to skip the AI industry overview and recent trends, read below. 5 AI stocks that are skyrocketing.
If you were to rewind time 18 months ago, not many people would be so excited about artificial intelligence. To the average person, the term belongs to the realm of science fiction, and to industry insiders, AI becoming a global phenomenon will seem like a distant future.
But now, after the first quarter of 2024, AI is already a global phenomenon, not just the stuff of science fiction. The ball, which started rolling with the public launch of ChatGPT in late 2022 to early 2024, has now increased the stock price of chipmaker NVIDIA Corporation (NASDAQ: NVDA) by a whopping 518% since the end of 2022. is also soaring. , Dozens of companies have emerged that claim to use large-scale language models to help users in their daily lives. These companies are joined by companies that sell video and image generation software to industries whose computing needs are expected to reach billions, if not trillions of dollars. .
These computing needs are also at the heart of a fundamental transformation of the semiconductor industry. But before we get to that, it's important to understand what AI actually is. In layman's terms, AI is a set of mathematical formulas that attempt to generate a conclusion to a query or problem based on patterns gathered through training from existing datasets. The larger and more relevant this data set is, the better the AI system will be. Processing large data sets also requires AI accelerators and large amounts of semiconductor chips called GPUs.
While the software side of AI is very diverse, the hardware side can be a bigger bottleneck simply due to the nature of chip manufacturing. Manufacturing chips is neither cheap nor easy, and only a handful of companies around the world can produce high-end semiconductors. In fact, only Intel Corporation (NASDAQ:INTC) in the United States, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) in Taiwan, and Samsung Electronics Co., Ltd. (OTC:SSNLF) are capable of producing advanced AI chips. Of these, only TSMC has been able to quickly mass-produce the latest chips, but Intel is catching up with its technology roadmap and Samsung has not been able to capture market share to compete with TSMC.
This complexity and cost of semiconductor manufacturing is also why we regularly see incredible funding estimates for AI. In fact, such an update comes from The Information in the form of a project being worked on by Microsoft Corporation (NASDAQ:MSFT) and OpenAI. According to details, the companies plan to spend $100 billion to build a U.S.-based artificial intelligence supercomputer. According to the latest statement from NVIDIA head Jensen Huang, his NVIDIA Blackwell GPU, one of the most advanced artificial intelligence chips in the world, will cost between $30,000 and $40,000. This price is not surprising.
Speaking of Mr. Hwang, even before the AI craze became popular, he has been regularly advocating new technology that “software will eventually write software'' at technology conferences and financial results reports. Now that AI has become part of investors' vocabulary, Huang's vision appears to be coming true. This comes as Cognition Labs, a startup backed by renowned venture capitalist Peter Thiel, is looking to raise funding for a whopping $2 billion valuation. Cognition Labs aims to develop his AI-based tools for writing code.
Finally, before we get to the list of AI stocks that could skyrocket, another major player in the AI race is Menlo Park, California-based social media company Meta Platforms, Inc. (NASDAQ:META ) is. Before AI, Meta was one of the worst-performing mega-cap stocks on the market as investors were not convinced about its move into the Metaverse. But the company is now Wall Street's AI darling, with its stock up 129% in the past 12 months.
Here's what Wedgwood Partners said about Meta in its Q4 2023 investor letter:
Meta Platforms made a significant contribution to our results for the quarter and year. Core advertising revenue growth accelerated to +23%, and operating margins recovered significantly from the prior year. The company has consistently benefited from artificial intelligence (AI) over the past few years, actively investing in deep learning recommendation systems that help enhance its products to reach nearly half of the planet's population. Meta Platform's AI investments, combined with its massive scale, will enable the company to quickly launch new products and strengthen its competitive position across the digital advertising real estate. For example, the company's relatively new Reels product, which is just over two years old, has seen a +40% increase in the amount of time Instagram users spend on the app. Reels content and other content served to Instagram users often requires several very large and expensive processes that require billions of data points to be sorted in real time to determine the probability of user engagement. Powered by an AI recommendation system. We are one of the few companies that has been able to consistently and profitably monetize its AI technology for our shareholders, and we are confident that the company continues to maintain its top position in our portfolio. Masu.
So, are you wondering which AI stocks will skyrocket? We shared with our premium subscribers the #1 AI stocks trading at deep discounts, but with another stock in mind: There are other investment newsletters available. In this article, we take a look at what other investment newsletters think about the best way to bet on the future of AI.
A high-tech robotic drone that shows the company's progress in unmanned aerial systems.
our methodology
To create our list of fastest-rising AI stocks, we looked back to November 28, 2023, and compared AI stocks that were featured on multiple investment newsletter websites to hedge funds that bought the stocks in the fourth quarter of 2023. Ranked by number.
We used hedge fund sentiment for these skyrocketing AI stocks. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That's why we pay close attention to this often ignored metric.
10 AI stocks that are soaring
10. GSI Technology Co., Ltd. (NASDAQ:GSIT)
Number of hedge fund shareholders in Q4 2023: 4
Newsletter publication date: March 14, 2024
GSI Technology, Inc. (NASDAQ:GSIT) is a small semiconductor company headquartered in Sunnyvale, California. The company manufactures and sells memory products and processing chips for civil and defense applications. The company's stock price has been strong this year, up 28% since the beginning of the year.
At the end of Q4 2023, 4 out of 933 hedge funds profiled by Insider Monkey had purchased shares of GSI Technology, Inc. (NASDAQ:GSIT). Orin Hirschman's AIGH Investment Partners became the company's largest shareholder with a $2.4 million stake.
Arista Networks, Inc. (NYSE:ANET), GSI Technology, Inc. (NASDAQ:GSIT), Ulta Beauty, Inc. (NASDAQ:ULTA), and Vertiv Holdings Co (NYSE:VRT) could soar Some of the AI stocks.
9. Super Microcomputer Corporation (NASDAQ:SMCI)
Number of hedge fund shareholders in Q4 2023: 6
Newsletter publication date: December 6, 2023
Super Micro Computer, Inc. (NASDAQ:SMCI) is a computing technology company that manufactures and sells server products. The stock price has risen 243% since the beginning of the year on the back of Play AI's strong catalyst, making it one of the most interesting stocks in 2024. But this may not be the end of the gains, as JPMorgan outlined in a recent analyst note that the company could capture up to 15% of the AI market. As a result, they rated the company's stock as “overweight” and set a price target of $1,150.
During December 2023, 5 of the 933 hedge funds tracked by Insider Monkey were investors in the company. Super Micro Computer, Inc. (NASDAQ:SMCI)'s largest shareholder is Richard Driehaus and his Driehaus Capital with $126 million worth of shares.
8. Mitek Systems Co., Ltd. (NASDAQ:MITK)
Number of hedge fund shareholders in Q4 2023: 15
Newsletter publication date: December 13, 2023
Mitek Systems, Inc. (NASDAQ:MITK) is a small software company headquartered in San Diego, California. The company's products allow users to streamline their identity management, document authentication, and other services. Since pattern recognition is at the heart of artificial intelligence, this means it is ripe for disruption by AI. The stock has an average rating of “Strong Buy” and an average analyst price target of $17.80.
In terms of stock holdings in Q4 2023, 15 out of 933 hedge funds profiled by Insider Monkey held Mitek Systems, Inc. (NASDAQ:MITK) stock. Ben Gordon's Blue Cave Capital was the largest investor with a $45.1 million investment.
7. Symbotic Inc. (NASDAQ:SYM)
Number of hedge fund shareholders in Q4 2023: 24
Newsletter publication date: December 6, 2023
Symbotic Inc. (NASDAQ:SYM) is an interesting AI stock because of its involvement in logistics. Specifically, the company develops solutions that automate warehousing solutions. However, demonstrating the volatile nature of the ongoing AI wave, the company's stock price fell in February 2024 after its latest earnings report, despite outperforming profits.
By the end of the December 2023 quarter, 24 of the 933 hedge funds profiled by Insider Monkey were shareholders in Symbotic (NASDAQ:SYM).
6. BWX Technologies Co., Ltd. (NYSE:BWXT)
Number of hedge fund shareholders in Q4 2023: 29
Newsletter publication date: January 30, 2024
BWX Technologies, Inc. (NYSE:BWXT) is a new addition to the list of AI stocks that could skyrocket. AI servers use electricity, and the company manufactures and sells nuclear reactors, so it could capture new energy markets. BWX Technologies, Inc. (NYSE:BWXT) is another high-tech company that has partnered with NASA on the use of nuclear technology in space.
29 of the 933 hedge funds included in Insider Monkey's Q4 2023 database bought the company's stock. The largest stakeholder in BWX Technologies, Inc. (NYSE: BWXT) in our database is Amy Minella's Cardinal Capital with $88 million in stock.
Ulta Beauty, Inc. (NASDAQ:ULTA), BWX Technologies, Inc. (NYSE:BWXT), Arista Networks, Inc. (NYSE:ANET), and Vertiv Holdings Co (NYSE:VRT) are AI stocks to watch.
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Disclosure. none. 10 AI stocks that are soaring Originally published on Insider Monkey.