The Nasdaq recently set a record high, suggesting good times are ahead. The index has risen for at least two years after each of the past 10 annual market falls since the early 1970s. In its second year, the index gained double-digits on all but one occasion. This tendency could boost the Nasdaq in 2024, which has up 7.4% thus far.
AI stocks have led the gains and may continue to do so. This high-growth, high-potential technology excites investors. AI might save organizations and individuals money and time by completing jobs and solving issues faster and bringing lifesaving pharmaceuticals to patients. Thus, now is the moment to invest in AI powerhouses. Here are two AI stocks to buy in bulk before the Nasdaq rises.
1. Amazon Amazon (NASDAQ: AMZN) benefits in two ways from AI. The e-commerce company employs AI to optimize operations and improve customer service. AI solutions are sold by Amazon Web Services (AWS), its cloud computing business.
Amazon uses AI to recommend products based on your purchase history and find the optimal delivery routes. Other AI developments should keep customers coming back and enhance Amazon's profits.
AWS offers everything from chips to train AI models to a fully managed solution to customize the most common large language models (LLMs). AWS offers its own cheaper processors and Nvidia's fastest, most powerful chips and services.
This might make Amazon a winner in an AI revolution. Amazon has the means to spend in this hot industry and grow due to its strong profitability record. Amazon's net sales grew double-digits and operating income quadrupled to $13 billion in the latest quarter. It's acceptable to pay 42x times forward profit predictions for a competent corporation with promising AI possibilities.
2) Nvidia Despite competition, Nvidia owns 80% of the AI chip market and is unlikely to lose its position for two reasons. First, the company's first-to-market advantage and brand strength should retain some customers. Second, Nvidia invests in R&D to stay ahead.
Investors anticipate Nvidia's H200 chip launch in the second quarter and the Blackwell architecture and B100 chip introduction later in the year. The company's fastest chip is improved by these newer products.
Nvidia designs more than chips. The company offers a comprehensive range of AI client goods and services, including an AI "operating system" software platform. Nvidia products are available on AWS and other major cloud providers. Therefore, clients may easily access Nvidia's offerings through their cloud service.
Given its market leadership and likelihood of staying on top, Nvidia's earnings may continue to rise. Nvidia trades at 35x forward profit expectations, which seems appropriate for a growth stock. Nvidia is a must-have for any AI portfolio.
follow for more updates