of Nasdaq Composite The index has had a great year so far, and 2024 is just a few months away. Investors in artificial intelligence (AI) stocks, chip designers, and cloud computing players. This confirms that the index has reached a new all-time high and has entered bullish territory.
And if history is any guide, the Nasdaq's winning streak may be unstoppable just yet. Over the past six periods of stock market gains dating back to 1990, the Nasdaq has averaged 64% gains in his first two strong years. The index rose about 43% last year and is up 8% so far this year, so if it follows historical patterns, the Nasdaq could soar this year. Here are the top AI growth stocks to buy before they…
Amazon
Amazon (NASDAQ:AMZN) With shares up 20% so far this year, this top stock may just be getting started. That's because Amazon is an ideal AI stock to buy. The company uses this technology to improve e-commerce operations and also sells its AI products and services to cloud computing service customers through its Amazon Web Services (AWS) division. So you're benefiting from AI in two ways.
For example, Amazon uses AI to streamline fulfillment center operations and select the shortest delivery routes. This is important because it can potentially reduce service costs for businesses.
Additionally, AWS prioritizes serving AI needs at all levels, so in addition to basic features such as chips for training and inference programs, we offer fully managed services that let you customize top-large language models (LLMs) for your own use. We also offer . Given that AWS is the world's leading cloud services player, there is already a huge audience on AWS ready to launch their AI projects.
Therefore, it is clear that AI has the potential to have a significant impact on Amazon's revenue growth over time by streamlining e-commerce processes, reducing costs, and increasing AWS revenue.
Amazon stock currently trades at 43 times forward earnings estimates, which seems like a reasonable price for a growth stock, especially one with a solid profitability outlook and a compelling AI strategy.
intel
intel (NASDAQ:INTC) has struggled to keep up with the AI race, but the tide may be turning recently. Late last year, the company introduced a portfolio of AI products that could strengthen its competitiveness and drive a new era of growth. One example is the Intel Core Ultra mobile processor family, a key step in starting the era of AI personal computers. These are high-performance computers that can perform many AI tasks.
Intel also announced the latest Intel Xeon processor family with AI acceleration and Gaudi 3 AI accelerator.Didn't think these innovations would threaten the chip market giants Nvidialeadership, but that's okay. Considering this opportunity, the AI market is predicted to exceed $1 trillion by the end of this decade, and there is room for multiple companies to gain market share and profit. Intel also has the potential to become one, thanks to new innovations in the future.
In addition to this, Intel's move to open up its manufacturing network to other companies with the goal of becoming the world's second-largest foundry by 2030 could accelerate growth. This is a big gamble, but one that can pay big dividends in the future. Intel has already won contracts for his 18A process from four customers and signed five advanced packaging contracts.
Intel's stock trades at 29 times forward earnings, a bargain considering the company's AI and foundry prospects and analysts' expectations for double-digit annual growth over the next five years. Therefore, Intel may be ripe for a bounce back, making now the ideal time to join the tech giant.
Should you invest $1,000 in Amazon right now?
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Adria Cimino has a position at his Amazon. The Motley Fool has positions in and recommends Amazon and Nvidia. The Motley Fool recommends Intel and recommends the following options: These are a long call on Intel at $57.50 in January 2023, a long call on Intel at $45 in January 2025, and a short call on Intel at $47 in May 2024. The Motley Fool has a disclosure policy.
“History Says the Nasdaq Will Soar This Year: My Top Artificial Intelligence (AI) Growth Stocks to Buy Before It Happens” was originally published by The Motley Fool.