Top 3 AI Stocks For 2024 -- Nvidia Stock Makes The LIST
TLDRIn this video, the speaker discusses their top three AI stocks for 2024, aiming to increase their positions in these companies significantly. The first stock, NVIDIA, dominates AI hardware with its H100 and upcoming H200 and B100 products, facing supply constraints and growing demand. The second, Oracle, provides cloud applications and infrastructure, with a focus on partnerships with NVIDIA and strong growth in cloud revenue. The third, CrowdStrike, is a cybersecurity leader with significant expansion opportunities and impressive revenue growth. The speaker shares their current portfolio allocations and buying strategies for each stock, highlighting the potential risks and growth opportunities.
Takeaways
- 📈 The speaker aims to increase their positions in three AI stocks, which they believe will make up a significant portion of their portfolio by year-end 2024.
- 🔍 The focus is on companies dealing with hardware clouding, infrastructure, and cybersecurity.
- 🏆 NVIDIA is the first stock discussed, making up 15% of the speaker's portfolio, with a strong presence in AI accelerators and hardware.
- 🚀 NVIDIA's H100 is dominating the market, with upcoming products like the H200 and B100 expected to continue their market leadership.
- 📊 NVIDIA's data center revenue is growing rapidly, with supply constraints indicating strong demand.
- 💹 The speaker considers NVIDIA's current valuation strong, despite a high PE ratio, due to its growth potential.
- 🔮 The second stock is Oracle, which the speaker is looking to increase in their portfolio, focusing on its cloud infrastructure and AI services.
- 🌐 Oracle's cloud revenue is growing significantly, with a focus on expanding their cloud data centers globally.
- 🔒 The third stock, CrowdStrike, is a leader in cybersecurity, with a strong growth trajectory and expansion opportunities.
- 📝 The speaker plans to monitor the market for better buying opportunities, particularly for NVIDIA and CrowdStrike.
- 🎥 The speaker invites viewers to share their thoughts and suggests future content on high-risk, high-growth AI stocks.
Q & A
What is the speaker's goal regarding the top three AI stocks in their portfolio?
-The speaker aims to increase their positions in the top three AI stocks to make them a significant portion of their overall portfolio by the end of the year.
Which company is the first one mentioned in the speaker's top three AI stocks?
-The first company mentioned is NVIDIA, which the speaker is very bullish about, especially due to its leadership in AI accelerators and hardware.
What is the current market situation for NVIDIA's AI GPU supply?
-The AI GPU supply for NVIDIA is reported to stay tight in 2024, indicating more demand than supply, which is favorable for NVIDIA's sales growth.
What are the upcoming products from NVIDIA that the speaker is excited about?
-The speaker is excited about NVIDIA's upcoming products, the H200, which is expected to come out in the second quarter of 2024, and the Blackwell B100, expected to be released later in the year.
What is the speaker's view on NVIDIA's valuation and growth potential?
-The speaker believes NVIDIA is at a strong valuation given its growth potential, with forward PE ratios suggesting it's not too expensive for a company growing at high levels.
Which company is the second stock the speaker discusses, and what are its main offerings?
-The second stock is Oracle, which provides Oracle Cloud applications for business growth and is growing in the cloud infrastructure market.
What is Oracle's partnership with NVIDIA, and how does the speaker think it will benefit Oracle?
-Oracle partners with NVIDIA for products like Grace Hopper instances, which are GPU-specialized cloud services. The speaker believes this partnership will significantly contribute to Oracle's growth.
What is the speaker's opinion on Oracle's financial growth and potential?
-The speaker is optimistic about Oracle's growth, particularly in its cloud infrastructure, and believes it can outperform its expected compounded annual growth rate of 9%.
Which company is the third stock in the speaker's list, and what is its focus?
-The third stock is CrowdStrike, a major player in the cybersecurity market, known for its Falcon cybersecurity solutions.
What is the speaker's view on CrowdStrike's valuation and growth opportunities?
-The speaker considers CrowdStrike potentially overvalued but sees significant growth opportunities, especially in expanding its offerings to existing customers.
What are the speaker's buying points for NVIDIA and CrowdStrike?
-For NVIDIA, the speaker's buying points start in the low 400s, and they would consider adding more if the price remains around that range. For CrowdStrike, the speaker is waiting for better buying times, as they believe there are better opportunities available.
Outlines
📈 AI Stocks and Portfolio Goals for 2024
The speaker discusses their top three AI stocks for 2024, aiming to increase their positions in these companies to make up a significant portion of their portfolio. The focus is on companies dealing with hardware, cloud infrastructure, and cybersecurity. The speaker hints at the first stock being NVIDIA, a leader in AI accelerators and hardware, and mentions the company's growth potential and supply constraints. They also discuss their overall thoughts on price points and positioning.
🚀 NVIDIA's Market Dominance and Growth Prospects
The speaker analyzes NVIDIA's position in the AI hardware market, highlighting its dominance with products like the H100 and upcoming H200 and B100. They discuss NVIDIA's revenue growth, supply constraints, and potential for increasing sales. The speaker is bullish on NVIDIA's growth opportunities and shares their valuation thoughts, considering the company's forward PE ratios and free cash flow. They also mention the risk associated with AI demand sustainability.
🌐 Oracle's Cloud Infrastructure and AI Services
The speaker introduces Oracle as the second stock, emphasizing its growth in cloud infrastructure and AI services. They discuss Oracle's partnerships with NVIDIA and its expansion plans, including new data centers to meet global demand. The speaker is optimistic about Oracle's growth potential, citing its cloud revenue growth and future expansion. They also mention Oracle's financial goals and PE ratios, indicating a belief that the company is not overvalued.
🔒 Crowstrike's Cybersecurity Expansion and Revenue Growth
The speaker talks about Crowstrike, a leading cybersecurity player, as the third stock. They highlight Crowstrike's impressive growth in annual recurring revenue and its expansion opportunities within the existing customer base. The speaker expresses excitement about Crowstrike's new solutions and acquisitions but acknowledges the stock's high valuation. They share their portfolio allocation for Crowstrike and discuss potential buying points.
Mindmap
Keywords
💡AI Stocks
💡Portfolio
💡Hardware Clouding
💡Cybersecurity
💡Market Share
💡Supply Constraint
💡PE Ratio
💡Free Cash Flow
💡Cloud Infrastructure
💡Acquisitions
Highlights
The speaker is focusing on their top three AI stocks for 2024, aiming for these to make up a third of their portfolio.
The companies discussed are not just growth stories; they have mature products and are market leaders or gaining share in their fields.
The first stock mentioned is NVIDIA, which makes up about 15% of the speaker's portfolio and is a leader in AI accelerators and AI hardware.
NVIDIA's H100 is dominating the market, with new products like the H200 and B100 expected to be released in 2024.
The AI GPU supply is expected to stay tight in 2024, which is favorable for NVIDIA's sales growth.
NVIDIA's data center revenue is growing rapidly, with the company increasing supply to meet strong demand.
Oracle is the second stock, making up about 3-3.5% of the portfolio, with a focus on cloud infrastructure and AI services.
Oracle's cloud revenue grew 25% year-over-year, and their cloud infrastructure grew by 52% year-over-year.
Oracle is expanding its cloud data centers to accommodate the growing demand for AI services.
The third stock, CrowdStrike, is a major player in the cybersecurity market, with a focus on expanding within its existing customer base.
CrowdStrike's annual recurring revenue surpassed $3 billion, with a 35% year-over-year growth.
The speaker is bullish on NVIDIA, Oracle, and CrowdStrike, seeing them as strong investments for growth and market leadership.
The speaker plans to increase their positions in these stocks, with specific buy points and growth expectations for each.
The speaker discusses the risks associated with AI demand and the potential for oversupply issues in the market.
Oracle's partnership with NVIDIA is highlighted as a significant growth opportunity for both companies.
The speaker's overall strategy includes a mix of long-term growth and preparedness for short-term market fluctuations.
