Best Artificial Intelligence Stocks for 2024 and Beyond!

Ale's World of Stocks
16 Dec 202314:49

TLDRIn this video, Ali shares his top six artificial intelligence stocks for long-term investment. He discusses the potential of AI to add trillions to the global economy and highlights stocks like Nvidia (NVDA) for its leading position in AI hardware and software, C3.ai (AI) for its AI software solutions, Microsoft (MSFT) for its AI integration across various platforms, Palantir Technologies (PLTR) for its AI services to government and commercial entities, Google (GOOGL) for its vast data collection capabilities, and Baidu (BIDU) for its AI leadership in the Chinese market. Ali emphasizes the growth potential of these companies and their relevance to the future of AI.

Takeaways

  • 🚀 Artificial Intelligence (AI) is expected to add trillions of dollars to the global economy, making AI stocks a promising investment area.
  • 💡 Nvidia (NVDA) is considered a top AI stock due to its leading position in AI hardware and software, with a 60% market share in AI-related revenue.
  • 🔮 C3.ai (AI) specializes in AI software technologies, providing data analytics across various industries, and has seen significant growth despite being a riskier investment.
  • 🌐 Microsoft (MSFT) is a foundational stock with exposure to AI through its cloud platform Azure and integration of AI into its services like Office and GitHub.
  • 📊 Palantir Technologies (PLTR) offers AI services to government and commercial entities, with a strong track record of winning contracts and growing its customer base.
  • 🔍 Google (GOOGL) has a diverse data collection portfolio, which positions it well for AI development, and its stock is trading at a PEG ratio lower than the sector average.
  • 🇨🇳 Baidu (BIDU) is a Chinese AI leader with a strong presence in search, cloud computing, and AI patents, making it a potential dominant player in the Asian market.
  • 📈 The speaker recommends these AI stocks for long-term investment, highlighting their growth potential and current market positions.
  • 📊 The AI sector is diverse, with a mix of low-risk, high-risk, and high-growth stocks, offering various investment strategies.
  • 🌟 Despite the recent growth in AI stocks, the speaker believes there is still significant room for growth, especially considering the future potential of AI technologies.
  • 💬 The speaker invites viewers to share their thoughts on the AI stock picks and suggest other stocks that should be considered.

Q & A

  • What is the main focus of Ali's video?

    -The main focus of Ali's video is to provide an update on his favorite artificial intelligence (AI) stocks for long-term investment.

  • How many AI stocks does Ali discuss in the video?

    -Ali discusses six AI stocks in the video.

  • What is the first stock Ali mentions in the video?

    -The first stock Ali mentions is Nvidia, with the ticker symbol NVDA.

  • Why does Ali consider Nvidia a strong AI stock?

    -Ali considers Nvidia a strong AI stock because it has a significant market share in AI-related revenue, sells high-performing hardware for AI, and develops software solutions for various AI markets.

  • What is the ticker symbol for the second stock Ali discusses?

    -The ticker symbol for the second stock, C3.ai, is AI.

  • How does C3.ai utilize AI in its services?

    -C3.ai specializes in AI software technologies, providing data analytics across multiple industries, including banking, finance, law enforcement, military, and asset management.

  • Which company does Ali consider a catalyst for the recent AI hype?

    -Ali considers Microsoft, with the ticker symbol MSFT, as a catalyst for the recent AI hype due to its involvement with Chat GPT and its cloud platform, Azure.

  • What is the ticker symbol for Palantir Technologies?

    -The ticker symbol for Palantir Technologies is PLTR.

  • How has Palantir Technologies performed financially in recent quarters?

    -Palantir Technologies has shown positive net income for the last four quarters in a row, and its adjusted free cash flow has increased nearly four times year-over-year.

  • What is the ticker symbol for Google, and why is it considered a strong AI stock?

    -The ticker symbol for Google is GOOGL (or GOOG). It is considered a strong AI stock due to its vast collection of user data, dominant market shares in various online services, and its third-largest cloud computing platform.

  • What is the ticker symbol for Baidu, and why does Ali consider it a good AI investment?

    -The ticker symbol for Baidu is BIDU. Ali considers it a good AI investment because it dominates the Chinese search market, has a large cloud platform, and leads in AI patents, with a focus on AI applications in China and Asia.

Outlines

00:00

🚀 Introduction to AI Stocks

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.

05:01

💻 Nvidia: The AI Giant

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.

10:02

🤖 C3.ai: The AI Software Specialist

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.

🌐 Microsoft: The AI Catalyst

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.

🔍 Palantir Technologies: The AI Data Management Star

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.

🔍 Google: The Data-Driven AI Leader

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.

🌏 Baidu: The AI Powerhouse in China

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.

Mindmap

Keywords

💡Artificial Intelligence (AI)

Artificial Intelligence refers to the simulation of human intelligence in machines that are programmed to think, learn, and make decisions like humans. In the video, AI is the central theme, with the speaker discussing stocks that are poised to benefit from the growth and development of AI technologies. The video highlights the potential of AI to revolutionize various industries and contribute significantly to the global economy.

💡Stocks

Stocks represent ownership shares in a company and are a common investment vehicle. The video focuses on AI stocks, which are shares of companies involved in the development and application of AI technologies. The speaker, Ali, provides an update on his favorite AI stocks for long-term investment, emphasizing their potential for growth and impact on the future of AI.

💡Nvidia (NVDA)

Nvidia is a technology company known for its graphics processing units (GPUs) and AI hardware. In the context of the video, Nvidia is highlighted as a key player in the AI sector due to its market-leading position in providing hardware and software solutions for AI applications. The speaker mentions that Nvidia's GPUs power many supercomputers and are integral to AI development, making it a strong investment choice.

💡C3.ai (AI)

C3.ai is a company specializing in AI software technologies, offering data analytics solutions across various industries. The video discusses how C3.ai's machine learning capabilities help in fraud detection, lending, law enforcement, and asset management. The company's focus on AI software and its applications in multiple sectors make it a speculative stock to watch in the AI space.

💡Microsoft (MSFT)

Microsoft is a multinational technology giant that has been instrumental in the development of AI, particularly through its cloud platform, Azure, and AI services like GPT. The video emphasizes Microsoft's role as a catalyst in AI advancements and its potential for long-term growth due to its integration of AI into various business segments, such as search, office productivity, and cloud computing.

💡Palantir Technologies (PLTR)

Palantir Technologies is an AI data management and analysis company that serves both government and commercial entities. The video highlights Palantir's success in winning government contracts and its new AI platform for large language models, which has led to significant growth in customer accounts. Palantir's financial performance and its focus on AI services make it an attractive investment option in the AI sector.

💡Google (GOOGL)

Google, through its parent company Alphabet, is a major player in the AI space due to its vast collection of user data and its development of AI technologies. The video mentions Google's dominance in internet search, browser market share, and other data-rich services, which position it well for AI advancements. Google's AI initiatives, including Google Bard and the new Gemini model, are expected to contribute to its long-term growth potential.

💡Baidu (BIDU)

Baidu is a Chinese technology company that specializes in Internet-related services, including search, cloud computing, and AI. The video discusses Baidu's significant presence in the Chinese market and its leadership in AI patents, making it a potential dominant player in AI, particularly in China and Asia. Baidu's efforts in autonomous driving, generative AI, and other AI-related fields are seen as a strong investment opportunity in the AI space.

💡PEG Ratio

The PEG (Price/Earnings to Growth) Ratio is a stock's PE (Price/Earnings) ratio divided by the growth rate of its earnings. It is used to determine a stock's value while considering its future earnings growth. In the video, the speaker uses the PEG ratio to argue that some AI stocks, like Nvidia and Google, are undervalued compared to their growth potential, making them attractive investments.

💡Market Share

Market share refers to the percentage of a market that a company or product occupies. In the context of the video, market share is used to illustrate the dominance of companies like Google, Baidu, and Microsoft in their respective sectors, which is crucial for their AI initiatives. A high market share often translates to more data, which is essential for training and improving AI systems.

💡Generative AI

Generative AI refers to AI systems that can create new content, such as text, images, or audio, based on patterns learned from data. The video mentions generative AI as a significant area of growth and innovation within the AI field. Companies like Google and Baidu are developing generative AI models, which are expected to become more powerful and have a wide range of applications over time.

Highlights

Ali discusses his favorite artificial intelligence stocks for long-term investment.

The future of AI is expected to add many trillions of dollars to the global economy.

Nvidia (NVDA) is considered a top play in AI due to its significant market share and hardware/software capabilities.

JP Morgan analysts predict Nvidia will generate the most AI-related revenue this year.

C3.ai (AI) specializes in AI software technologies and data analytics across various industries.

C3.ai's machine learning capabilities have shown to decrease false positive fraud alerts by 85%.

Microsoft (MSFT) is a core foundational stock with exposure to AI through its cloud platform, Azure.

Microsoft's Azure has grown to serve over 18,000 firms after integrating GPT-4.

Palantir Technologies (PLTR) provides AI services to government and commercial entities, winning new contracts regularly.

Palantir's new AI platform for large language models has been adopted by nearly 300 organizations.

Google (GOOGL) has a strong position in AI due to its vast collection of user data and cloud computing capabilities.

Google's AI model, Gemini, is expected to be powerful due to its integration of text, image, video, and audio data.

Baidu (BIDU) is a leader in AI with a focus on the Chinese and Asian markets, holding a large number of AI patents.

Baidu's AI Cloud platform is the largest in China and leads in AI Cloud globally.

Ali invites viewers to share their thoughts on the AI stocks discussed and any other recommendations.

Ali appreciates the support from his viewers and encourages them to subscribe to his channel.

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