Top 10 Stocks to Get Rich in 2024 (Without Getting Lucky)

Ticker Symbol: YOU
28 Dec 202314:53

TLDRIn this video, Alex shares his top stock picks for 2024, focusing on AI-driven growth in various markets. He emphasizes the importance of a diversified portfolio, highlighting the NASDAQ 100 index for its tech focus and potential for higher returns. Alex discusses the dominance of Microsoft, Google, and Amazon in cloud services and their joint ownership of the global cloud market. He also covers the significance of Nvidia and AMD in data center GPUs and suggests investing in solar projects for potential annual returns. The video concludes with Alex's selection of cybersecurity and enterprise software companies, emphasizing the need for adaptability and speed in the evolving AI landscape.

Takeaways

  • 📈 The speaker is focusing on stocks that leverage AI to grow in fast-moving markets, aiming for a solid long-term portfolio.
  • 🚀 AI is considered the best way to grow wealth without relying on luck, as it's a key driver in multiple expanding industries.
  • 📊 The speaker's background in electrical engineering and data science with AI experience shapes the stock selection process.
  • 🔍 The stock list is for educational purposes and not financial advice, highlighting companies that integrate AI in their operations.
  • 📉 The speaker buys stocks when they drop below their price targets, which are determined by research.
  • 🌐 Cloud services market is dominated by Microsoft, Google, and Amazon, who together own 65% of the global market.
  • 💹 Investing in solar projects through Climatize offers a potential annual return of up to 10%, supporting communities and small businesses.
  • 🔧 Nvidia and AMD dominate the data center GPUs market, with Nvidia holding a 92% market share, crucial for AI applications.
  • 🔒 Cybersecurity is a growing market, with a forecasted growth rate of over 22% per year, driven by evolving AI and increased cyber threats.
  • 🤖 Enterprise software companies like Palantir and UiPath offer specialized AI solutions for data optimization and automation, adapting to the evolving AI landscape.
  • 🌟 The global AI market is expected to grow 15x over the next 10 years, suggesting significant growth for related hardware and cloud service providers.

Q & A

  • What is the main theme of the video?

    -The main theme of the video is to discuss top stocks for 2024 that are related to AI and work together to hold winners in fast-growing markets.

  • Why does the speaker mention that they are not a financial advisor?

    -The speaker clarifies they are not a financial advisor to emphasize that their stock recommendations are for educational purposes and not professional financial advice.

  • What are the advantages of the NASDAQ 100 index over the S&P 500 according to the speaker?

    -The NASDAQ 100 has three advantages: it tracks 100 companies instead of 500, it holds more tech-focused companies, and it can include non-US companies, which can benefit from the AI boom.

  • Why did the speaker choose not to include Meta Platforms or Tesla in their list?

    -The speaker chose not to include Meta Platforms or Tesla because they are already near the top of the NASDAQ 100 index and the speaker's strategy is to diversify within the market.

  • What percentage of the global cloud services market do Microsoft, Google, and Amazon own?

    -Microsoft, Google, and Amazon own a combined 65% of the global cloud services market.

  • What is the expected compound annual growth rate for the enterprise accelerator market?

    -The enterprise accelerator market is expected to have a 24% compound annual growth rate for almost the next decade.

  • Why are Nvidia and AMD important in the context of AI?

    -Nvidia and AMD dominate the market for data center GPUs, which are the main kind of processor for AI applications. Nvidia has a 92% market share, and AMD is their only direct competition with around 4%.

  • What is the speaker's strategy for investing in the AI market?

    -The speaker's strategy is to invest in companies that are market leaders or have a significant presence in fast-growing AI-related markets, ensuring a diversified portfolio that benefits from the growth of the AI industry.

  • What are the two cybersecurity companies the speaker chose to include in the list and why?

    -The speaker chose Palo Alto Networks and CrowdStrike because they have high earnings growth and are market leaders in identity and access management and data loss prevention, which are significant parts of the global cloud security market.

  • What are the key reasons for choosing Palantir and Uipath as part of the investment portfolio?

    -Palantir and Uipath were chosen for their flexibility, speed in adapting to AI advancements, and their ability to offer tools that are loved by customers, which positions them well for the evolving AI market.

Outlines

00:00

📈 Investing in AI-Driven Markets

The speaker introduces the video by emphasizing the importance of investing in stocks that are influenced by AI, which is a key driver of growth in various markets. They clarify that the video is not financial advice but rather an educational sharing of their research. The speaker's background in electrical engineering and data science, with a focus on AI, is highlighted. They mention that the stocks discussed will be based on AI applications and that the video will cover a list of stocks in a high-level manner.

05:01

🌐 The NASDAQ 100 vs. S&P 500

The speaker compares the NASDAQ 100 and S&P 500 indices, highlighting the NASDAQ's advantages such as tracking fewer companies, focusing more on tech, and including non-US companies. They discuss the performance of the NASDAQ 100 over the past five years and attribute its success to the AI boom. The speaker also mentions the volatility of the NASDAQ 100 and how it can be beneficial for long-term investors. They explain their choice of Microsoft, Google, and Amazon for their portfolio due to their significant share in the global cloud services market.

10:03

💹 Cloud Services and Infrastructure Investments

The speaker delves into the dominance of Microsoft, Google, and Amazon in the cloud services market and the infrastructure investment required to maintain such services. They discuss the high costs associated with developing and maintaining data centers and the competitive advantage these companies have. The speaker also introduces the concept of investing in solar projects through Climatize, explaining the process and potential returns. They then return to the topic of cloud services, emphasizing the importance of data center GPUs and the market leaders, Nvidia and AMD.

🛡️ Cybersecurity and Enterprise Software

The speaker shifts focus to the cybersecurity market, predicting its rapid growth due to evolving AI and increasing cyber threats. They identify key areas within cybersecurity, such as identity and access management, and data loss prevention. The speaker selects Palo Alto Networks and CrowdStrike as leaders in these areas, despite recent insider selling and profitability concerns. They also discuss enterprise software companies, focusing on Palantir and Uipath, and their AI-driven solutions for various industries. The speaker emphasizes the importance of being flexible and fast in the AI era, which is why they chose these companies for their portfolio.

Mindmap

Keywords

💡AI (Artificial Intelligence)

AI refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. In the video, AI is central to the discussion of growth in various markets, as it is driving advancements and creating opportunities for companies that leverage it. The speaker emphasizes AI's role in transforming industries and how investing in AI-related stocks can lead to significant returns without relying on luck.

💡Stocks

Stocks represent ownership shares in a company. The video focuses on selecting stocks that are poised to grow due to their involvement in AI and other technological advancements. The speaker provides a list of stocks that, in their view, form a solid foundation for a long-term investment portfolio, particularly in the context of the AI boom.

💡NASDAQ 100

The NASDAQ 100 is an index of the 100 largest non-financial companies listed on the NASDAQ stock exchange. It is mentioned in the video as a better investment choice than the S&P 500 due to its focus on technology companies, which are expected to benefit from the AI boom. The speaker highlights the index's performance and its composition, which includes major AI adopters.

💡Cloud Services

Cloud services refer to the delivery of computing services over the internet, allowing users to access and use resources remotely. In the context of the video, Microsoft, Google, and Amazon are highlighted as major players in the global cloud services market, owning a significant share. These companies are investing heavily in AI infrastructure, making them key stocks for long-term growth.

💡Data Center GPUs

Data center GPUs, or graphics processing units, are specialized hardware used for processing complex data and AI applications. Nvidia and AMD dominate this market, as discussed in the video. The speaker sees these companies as essential for the AI market's growth due to their role in providing the necessary hardware for AI processing.

💡Cybersecurity

Cybersecurity involves protecting computer systems, networks, and data from digital attacks. The video mentions the global cloud security market's rapid growth, with a focus on identity and access management and data loss prevention. Companies like Palo Alto Networks and CrowdStrike are highlighted for their market leadership and growth potential in this sector.

💡Enterprise Software

Enterprise software is software designed for business use, often managing large amounts of data and complex operations. The video discusses two companies, Palantir and UiPath, that provide enterprise software solutions. Palantir offers platforms for real-time data analysis, while UiPath specializes in robotic process automation, both of which are seen as valuable in the evolving AI landscape.

💡Investment Strategy

The investment strategy discussed in the video revolves around building a long-term portfolio by focusing on fast-growing markets and companies that are leaders in AI and related technologies. The speaker emphasizes the importance of understanding the underlying technology and market trends to make informed investment decisions.

💡Volatility

Volatility in finance refers to the degree of variation of a trading price series over time as measured by the standard deviation of returns. The video mentions that while the NASDAQ 100 index is more volatile than the S&P 500, this volatility can be beneficial for long-term investors, as it can lead to higher returns and better buying opportunities.

💡Market Leaders

A market leader is a company that holds a dominant position in its industry or market segment. The video identifies Microsoft, Google, Amazon, Nvidia, and AMD as market leaders in their respective areas, such as cloud services and data center GPUs. These companies are seen as key investments due to their strong market positions and potential for continued growth.

Highlights

The video discusses top stocks for 2024, focusing on AI-driven growth in various markets.

The speaker is an electrical engineer and data scientist with 10 years of industry experience.

The list is not financial advice but a foundation for the speaker's portfolio in 2024 and beyond.

The speaker only buys stocks when they drop below their price targets.

The NASDAQ 100 index is preferred over the S&P 500 for its focus on tech companies and non-US companies.

Microsoft, Google, and Amazon own 65% of the global cloud services market.

Investing in solar projects through Climatize can potentially yield up to 10% per year.

Nvidia and AMD dominate the data center GPUs market, with Nvidia having a 92% market share.

Intel has over 70% market share for data center CPUs, but the speaker did not include it in the list due to its high valuation.

The global AI market is forecasted to grow 15x over the next 10 years.

Cybersecurity is a growing market, with a forecasted growth rate of over 22% per year.

Palo Alto Networks and CrowdStrike are market leaders in identity and access management and data loss prevention.

UiPath specializes in software robots for automation, using AI like computer vision and natural language processing.

The speaker chose Palo Alto Networks and UiPath for their flexibility and ability to adapt to evolving AI technologies.

The video emphasizes the importance of understanding the science behind stocks for long-term investment success.

The speaker's investment strategy is to focus on fast-growing markets and owning the winners, reducing the need for luck.

The best investment one can make is in oneself, as emphasized by the speaker at the end of the video.

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