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Top AI Stocks Promising Huge Returns in 2024

For nearly two years, AI chip stocks reigned supreme as the essential infrastructure for developing AI models worldwide. However, with the culmination of a chip-buying spree in 2023 and 2024, attention now turns to the next phase, the rise of AI software.

As companies pivot towards creating new AI models and applications, the software sector emerges as the focal point for investment. The impending surge in AI software development heralds the advent of the AI Boom, promising a landscape flooded with innovative applications reshaping society. Here are top stocks with transformative growth to keep an eye on:

Nvidia to revolutionize AI with its Blackwell chips

Nvidia Corporation (NVDA), the high-end chipmaker, stands out as a premier choice for investors eyeing AI stocks in 2024. Renowned for providing the robust processing power essential for cutting-edge AI applications, Nvidia’s trajectory as an AI powerhouse is unmistakable.

For instance, at its recent annual developer conference, Nvidia unveiled the groundbreaking Nvidia Blackwell platform and AI chips, boasting a 30-fold improvement in performance over predecessors. The recent $6 billion funding round for Elon Musk’s AI startup xAI further propelled Nvidia’s ascent, reflecting the industry’s growing confidence in its growth trajectory.

Nvidia’s impressive first-quarter results, featuring a remarkable 461% surge in adjusted earnings and a 262% revenue increase, reinforce its position as a market leader. In an exclusive interview, Nvidia CEO Jensen Huang exuded confidence in the company’s future prospects, citing robust demand for generative AI training.

Analysts bullish on C3 ai after impressive Q1 results

Amidst the market fluctuations, C3 ai Inc. (AI) stands resilient, emerging as a top contender in Artificial Intelligence (AI) investments. In its fiscal Q1 earnings report, C3.ai demonstrated robust performance, with subscription-revenue growth soaring by 41%, exceeding internal projections and analyst forecasts.

CEO Thomas Siebel remains bullish about the company’s prospects, citing overwhelming interest in their generative AI applications. Looking ahead, C3.ai forecasts substantial revenue growth for fiscal 2025, projecting figures between $370 million and $395 million, indicative of a 23% increase from the previous fiscal year.

On the other hand, analysts have taken note of C3.ai’s momentum, with revised price targets reflecting growing confidence. For instance, Morgan Stanley’s Sanjit Singh upgraded C3.ai’s price target to $23 from $21, noting its 5th consecutive quarter of revenue growth and robust FY2025 outlook.

Military contracts driving Palantir’s growth

Palantir Technologies (PLTR) is among the top AI stocks for 2024, driven by its powerful data analytics and machine-learning solutions. Palantir’s strategic partnerships, including a vital collaboration with the US military, underpin its growth. Its subsidiary Palantir US Inc. recently secured an initial order of $153 million to supply AI-enabled operating systems, with a potential for $480 million over five years. Additionally, a $33 million prototype project was awarded to enhance third-party integrations for the DoD.

The company’s 660 boot camps in Q1 led to a 42% rise in commercial customers, boosting revenue by 27% to $299 million. Government revenue also grew by 16% to $335 million. Palantir forecasts nearly $2.7 billion in revenue and up to $1 billion in free cash flow for 2024, marking significant year-over-year growth. With a long-term market opportunity of $120 billion, Palantir is poised for sustained success.


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