Analysts Say These 13 AI Stocks Will Skyrocket in 2024

Fahad Saleem
15 min read

In This Article:

In this article, we will take a detailed look at the Analysts Say These 13 AI Stocks Will Skyrocket in 2024. For a quick overview of such stocks, read our article Analysts Say These 5 AI Stocks Will Skyrocket in 2024.

While there's a strong debate out there on whether or not the Magnificent Seven group of stocks would be able to sustain their rally in 2024, there's hardly anyone questioning the permanence and significance of the AI revolution. In its 2024 outlook report by titled AI: More to Come in 2024, UBS cited Bloomberg Intelligence data which said the global AI demand is set to increase from $28 billion in 2022 to $300 billion in 2027.

UBS said in its report that 2024 would be the year of quality stocks. The firm defined quality stocks as those having strong returns on invested capital, healthy operating margins and low debt.  UBS said these quality indicators are found in the technology sector.

"This quality tilt speaks in favor of US technology companies. Technology offers the highest ROIC of the 11 US equity sectors: around 20% over the last 12 months (compared with around 3–4% for utilities or real estate). Tech sector balance sheets are also the strongest, with an average net-debt-to-EBITDA ratio of just 0.5x. With business models that combine subscription-based revenue streams with a presence in high-growth segments including artificial intelligence, we think tech companies look poised to deliver healthy earnings growth next year. Stocks have already rallied hard in anticipation of higher AI demand, yet we think companies across the AI value chain— from cloud to semis, software, and internet—have further to run, both in 2024 and over the longer term. We believe that investors looking for exposure to AI should seek broad exposure across the value chain."

Analysts Say These 5 AI Stocks Will Skyrocket in 2024

Photo by Ruben Sukatendel on Unsplash

Methodology

For this article we picked 13 stocks about which Wall Street is excited about when it comes to AI. Many notable analyst firms like Wedbush, Goldman Sachs, Jefferies, among others, upgraded these stocks citing AI-related catalysts. With each stock we mentioned why the Street is bullish on it with specific catalysts and bullish analyst thesis. Some notable plays include Salesforce Inc (NYSE:CRM), Alphabet Inc Class A (NASDAQ:GOOGL) and  Microsoft Corp (NASDAQ:MSFT).

With each stock we have mentioned hedge fund sentiment. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

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