Best Artificial Intelligence Stocks for 2024 and Beyond!

Ali introduces the video by expressing excitement about discussing his favorite AI stocks for the long term. He plans to cover six stocks, a mix of low and high-risk options, in a rapid-fire style. He emphasizes the bright future of AI, which is expected to add trillions to the global economy, and highlights the importance of the stocks he's chosen, which range from established leaders to fast-growing newcomers.

The first stock discussed is Nvidia (NVDA), which Ali believes stands to benefit the most from the rise of AI. Nvidia's dominance in AI hardware and software is highlighted, with JP Morgan analysts predicting a 60% market share in AI-related revenue. Ali mentions Nvidia's applications in various sectors, including autonomous driving, data centers, gaming, IoT, smart cities, and the metaverse. Despite its recent price increase, Nvidia's valuation is still considered cheaper than the sector on a PEG ratio basis, making it a strong investment for the future of AI.

Ali moves on to C3.ai (AI), a company specializing in AI software technologies for data analytics across multiple industries. He discusses C3.ai's capabilities in fraud detection, smart lending, law enforcement, military, and asset management, as well as its recent success in addressing supply chain issues. Despite the stock's significant increase this year, Ali suggests that it's still a speculative stock worth considering for its long-term potential in AI.

Ali's third stock pick is Microsoft (MSFT), which he considers a foundational stock for AI exposure. He credits Microsoft for the recent AI hype with the launch of ChatGPT and its integration into various Microsoft services, particularly Azure. Ali emphasizes Azure's importance as a cloud platform for AI computing power and the growth of the Azure Open AI service. He also mentions Microsoft's new Enterprise co-pilot service and its potential as a growth driver. Despite the stock's climb, Ali still sees it as a great addition to portfolios for long-term AI exposure.

Ali's fourth stock is Palantir Technologies (PLTR), which he considers one of his favorite speculative stocks. Palantir provides AI services to government and commercial entities, winning significant contracts and improving business operations. Ali notes Palantir's new AI platform for large language models and its rapid adoption by organizations. Despite the economic challenges, Palantir's customer count has grown significantly, and the company has become profitable, making it a more serious contender in the AI space.

Ali's fifth stock is Google (GOOGL), which he believes has a strong potential for long-term AI exposure due to its vast collection of user data. Google's dominance in search, browser, video, smartphone, email, travel, and advertising data is highlighted, as well as its third-largest cloud computing platform. Ali discusses Google's AI initiatives, including Google Bard and the new Gemini model, which incorporates text, image, video, and audio data. Despite the stock's performance, Ali sees it as undervalued and plans to continue investing in it.

The final stock Ali discusses is Baidu (BIDU), which he sees as a riskier but potentially dominant AI player, particularly in the Chinese and Asian markets. Baidu's strong market share in Chinese search and cloud services is noted, along with its leadership in AI patents and efforts in various AI fields. Ali mentions Baidu's own AI chips and its competitive position in autonomous driving, generative AI, finance, robotics, and digital advertising. Despite trading at a low price, Ali considers Baidu a strong AI play for the Chinese market.