If I say 2024 is going to be explosive for the stock market, believe me, it’s no exaggeration. Especially when we’re talking about A.I. stocks.
A.I. was a game changer in 2023, and analysts foresee an even more explosive 2024.
An optimistic forecast? Absolutely.
Yet grounded in facts and trends that my readers and I been following avidly.
“The A.I. industry is set to double in value by 2025, with many of these gains being made in 2024.” – Market Watch Report, 2023
Why this surge of confidence? Let’s take a look at the three compelling reasons:
- Real-world adoption of A.I. has accelerated beyond predictions, driving a steady demand for A.I. solutions
- Progress in A.I. technology is surging, with significant breakthroughs expected in both software and hardware within 2024
- International policies and regulations are becoming more A.I.-friendly, removing barriers for A.I. innovation and growth
A.I. stocks aren’t simply a speculation game. They’re an investment in the future, grounded in real-world advancements and industry trends. Let’s dive into those now and then I’ll give you the single best AI stock to invest $1,000 into today…
Explosive Real-world Adoption of AI
AI’s real-world adoption has been nothing short of explosive, and this is projected to surge even further in 2024. A report from Grand View Research states that the global artificial intelligence market size was estimated to be $62.35 billion in 2023, with a growth rate of 40.2% projected for the next seven years.(Grand View Research, 2024).
The AI industry has grown more diversified, encompassing everything from autonomous vehicles to diagnostic healthcare systems and personalised marketing strategies. These advancements have made AI an essential part of our lives and business infrastructures, thereby driving its widespread adoption.
- Autonomous Vehicles: With AI software powering them, autonomous vehicles are ceaselessly gaining traction. Countries like Singapore and the UAE aim to have their autonomous vehicles fully operational by 2030, leading the way for others to follow
- Diagnostic Healthcare Systems: AI in healthcare is a life-savior, literally. Its ability to detect patterns in data can identify early signs of diseases such as cancer, boosting diagnosis accuracy and potentially saving millions of lives. Companies developing AI-based diagnostic tools are thus garnering significant investment.
- Personalized Marketing Strategies: AI has redefined personalized marketing. With the power of AI, businesses can now deliver more targeted, personalized content to their customers, which boosts conversion rates and ultimately, profits.
AI is no longer an option, but a necessity in a digitizing world. As the adoption of AI continues to rise at an unprecedented rate, the stocks associated with AI-related technology have great potential to flourish. So, now the million-dollar question is–which A.I. stock would be our top pick for 2024?
Exponential Progress in A.I. Technology
We’ve seen unfathomable leaps in natural language processing, machine learning, and robotics. Today, AI doesn’t merely crunch numbers; it ‘understands,’ ‘learns,’ and ‘adapts.’
It’s quite the spectacle of human ingenuity and technological prowess.
Global spending on AI systems is expected to reach $110 billion in 2024.
This is happening now folks.
The McKinsey Global Institute suggests that AI could potentially deliver up to $13 trillion in annual economic activity worldwide by 2030.
Take a moment for that to sink in….
International Policies Shaped for Growth
The rise of A.I stocks isn’t just due to growing interest or market speculation. It’s primarily driven by global efforts to move towards a digitized future – a future running on Artificial Intelligence. We simply cannot underestimate the role of international policies in boosting AI innovation and investment.
Korea’s “Digital New Deal,” for example, aims at turning the tide of the post-pandemic economy through a powerful troika of digital infrastructure, digital transformation of industries, and a data economy. A key component of this initiative? A whopping 1.87 trillion won ($1.6 billion) proposed investment in AI alone. Can you comprehend the magnitude?
Across the globe in Europe, the European Commission has proposed an equally ambitious policy framework to stimulate AI development, promising €20 billion ($23.7 billion) annually. AI, as it seems, is shining at the center of policy lenses, fueled by rigorous regulations and hefty investments.
But why does this matter to us—investors and enthusiasts?
Because these policies are channeling an influx of resources, bringing together bright minds, and paving the way for numerous innovations that companies like Super Micro Computer Inc. leverage. It’s a game of interconnections and reciprocal relationships—ones that enable AI stocks to soar.
Super Micro Computer Inc.
Not to sound like a broken record, but AI is trumpeting a new era of technological innovation. And amidst all these companies, one has caught my eye and stands head and shoulders above the rest – Super Micro Computer Inc.
You’re probably wondering why, right? Let me indulge you!
Trading currently at around $320.28, Super Micro Computer Inc. has shown a consistent growth trajectory. This is hardly surprising considering its role in cloud-based technology – a sector that is burgeoning with unprecedented growth. This American company specializes in servers, storage, blades, rack solutions, networking devices, server management software, and high-end workstations to further AI developments.
Want some hard facts? Take this. As per recent reports from Merrill Lynch and Goldman Sachs, the server market size for AI is projected to be worth billions by 2024. And who’s leading the charge here? That’s right, it’s Super Micro Computer Inc.
A significant reason for Super Micro’s potent potential is its “We Keep IT Green” initiative. Recognized for energy efficiency, Super Micro’s products are seen as a beacon towards edging computing and AI. However, don’t let the green initiative fool you into thinking their products lack punch. Super Micro’s AI and Machine Learning solutions have been widely recognized for their unparalleled performance.
Super Micro has also been praised by Nasdaq for having a strong supply chain and having a “broad product portfolio”, making it a strong contender in the current AI stocks landscape. Case in point, Super Micro’s X11 single-processor servers, which introduced the world to AI-optimized ‘inference at the edge’ solutions.
Are the benefits to the world important to you? With Super Micro Computer Inc., you’re not just investing in a company that’s expected to yield high returns, you’re also investing in the future – a greener, more technologically advanced future. So, if you ask me, it’s a double win.
Before I conclude, could it be possible that this stock is also a safer bet for your hard-earned $1000?
The company’s financials indicate resilience. With the growing rise of AI technology and the increasing adoption rate of Super Micro’s products (their servers are primarily used in data centers which are booming), the company is expected to keep growing at a fast clip. In fact, in their Q4 2023 earnings report, they reported an impressive 26% year-over-year growth in revenue. Now that’s growth you can bank on!
Lastly, Super Micro Computer Inc. has an impressively low debt-equity ratio. Solid financial health, positive operating cash flow, and a healthy balance sheet are additional feathers to its cap.
As AI continues to shape our world and determine the future, this dynamic technology has spilled over into the stock market, creating a gold rush for those who know where to look. The question is, do you see the gold in Super Micro Computer Inc.? Let me know. Drop me an e-mail here!