12 Best Artificial Intelligence Stocks To Buy for 2024 According to Financial Media

Published January 3, 2024 at 6:56 am EST Updated August 19, 2026 at 2:39 pm EDT

This article examines the 12 best artificial intelligence stocks to buy for 2024 according to financial media.

Tech stocks had a great time in 2023, with about 60% gains for the information technology sector and the NASDAQ 100 index due to advancements in artificial intelligence and its speedy incorporation into businesses and daily life. The shares of Nvidia Corporation (NASDAQ:NVDA) have soared by more than three times, whereas the shares of Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOGL) have increased by 80% and 60%, respectively. According to the financial media, an AI-related bull run will continue in 2024. This is because businesses from all industries are attempting to use emerging technology to improve their business efficiency or enhance the performance of their products. Forbes predicts that between 2023 and 2030, the global AI market will grow at a compound annual growth rate of 37.3%. Morgan Stanley researchers believe that digital products’ seamless adoption of AI would shift consumers’ gravitation towards online experiences rather than offline ones.

Main Street Research chief investment officer James Demmert, a 30-year investing veteran, predicts a massive rally in AI stocks in 2024 that he believes will last for the next decade. He anticipates the upward trend will continue due to the increased productivity brought about by AI. He stated the following about the AI-related bull run:

“The market’s recent strength is indicative of a new and very real AI-led bull market and business cycle that could last a decade thanks to the productivity growth and tailwinds from AI. Experienced investors know that this kind of broad based strength across all sectors and capitalizations is reminiscent of the first year of previous bull markets that has much further to run, with inevitable corrections along the way. We urge investors not to allow the market’s recent strength to scare you out of stocks or prevent you from participating. Adding stocks during any kind of market pullback is the correct strategy at this early stage of the bull market. The fundamentals here are very appealing and likely long-lasting for years not months.”

UBS characterized generative artificial intelligence as a potentially disruptive and revolutionary technology in a note. UBS added that the introduction of new technologies has contributed significantly to a wide range of industries in history and that generative AI has the potential to boost the entire economy.

“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, will further 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.”

The best artificial intelligence stocks to buy for 2024 according to financial media belong to software, cloud computing service providers, and technology behemoths. CrowdStrike Holdings, Inc. (NASDAQ:CRWD), Salesforce, Inc. (NYSE:CRM), Advanced Micro Devices, Inc. (NASDAQ:AMD), C3.ai, Inc. (NASDAQ:AI), Palo Alto Networks, Inc. (NASDAQ:PANW), Palantir Technologies Inc. (NYSE:PLTR), and Snowflake Inc. (NASDAQ:SNOW) are among the 12 best artificial intelligence stocks to buy for 2024 according to financial media.

Photo by Levart_Photographer on Unsplash

Methodology

To create this list, we thoroughly examined the best stocks to buy in the artificial intelligence space suggested by financial media such as Forbes, The Motley Fool, Business Insider, Morningstar, and Investopedia. After that, hedge funds’ confidence in those companies was used to determine the top twelve consensus picks. To help readers make informed investment decisions, the outlook and AI profile of stocks are also covered. The hedge fund sentiment towards each stock was calculated using data from approximately 900 hedge funds tracked by Insider Monkey. 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.

Best Artificial Intelligence Stocks To Buy for 2024 According to Financial Media

12. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Holders: 24

The share price of enterprise artificial intelligence software provider C3.ai, Inc. increased 160% in the past 12 months. C3.ai, Inc. provides customers with the C3 AI platform, which allows them to design, develop, and deploy enterprise AI applications. C3.ai, Inc. has seen double-digit revenue growth and healthy customer engagement in recent quarters as a result of increased interest in generative AI offerings. In the September quarter of 2023, revenue of C3.ai, Inc. increased 17% year on year to $73.2 million, while customer engagement increased 81%. C3.ai, Inc. continues to invest heavily in growth opportunities, and its $762.3 million cash reserves would support its expansion activities.

Hedge fund confidence in C3.ai, Inc. increased in the third quarter of 2023. Insider Monkey data shows that the number of hedge fund positions in the company increased to 16 from 15 in the previous quarter. Tech investor Philippe Laffont’s Coatue Management was the largest stakeholder in C3.ai, Inc..

11. Palantir Technologies Inc. (NYSE:PLTR)

Number of Hedge Fund Holders: 31

Similar to C3.ai, Inc., shares of Palantir Technologies Inc. rose more than 150% in the past twelve months due to increased demand for artificial intelligence. Palantir Technologies Inc. revenue increased 17% year on year in the third quarter, and the software developer has achieved record profits in its 20-year history. Palantir Technologies Inc. anticipates fourth-quarter revenue of approximately $600 million, up from $558 million in the previous quarter. Its AI platform users tripled in the third quarter, and the recent launch of the AI platform “Bootcamps” would help in increasing demand for its AI offerings.

In the third-quarter investor letter, Scout Investments, Inc, an affiliate of Carillon Tower Advisers, Inc, explained why Palantir Technologies Inc. (NYSE:PLTR) stock rallied significantly. Here is what the firm stated about Palantir Technologies Inc. (NYSE:PLTR):

“Palantir Technologies Inc.’s stock moved higher on hopes that it could win business from the U.K.’s National Health Services and as customer counts grew rapidly in the latest quarterly report for the company’s new Artificial Intelligence Platform (AIP). Palantir also won a significant new contract with the U.S. Army in September, which should last through 2026. The debate on the street is how fast Palantir can monetize its new commercial customers. After the quarter closed, the company announced an enhanced marketing deal with a major auditing and consulting firm.”

10. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)

Number of Hedge Fund Holders: 69

CrowdStrike Holdings, Inc. is one of the 12 best artificial intelligence stocks to buy for 2023 because its AI Falcon XDR platform is gaining popularity. CrowdStrike Holdings, Inc. stock has risen 144% in the last twelve months, thanks to strong revenue and earnings growth. CrowdStrike Holdings, Inc. reported record operating margins, net income, and free cash flow in the third quarter. In Q3, CrowdStrike Holdings, Inc. reached the $3 billion ARR milestone, growing 35% year-over-year. Its cash flow from operations and free cash flow came in at a record $273 and $239 million, respectively.

In the third quarter investor letter, TimesSquare Capital Management, an equity investment management company, highlighted its confidence in CrowdStrike Holdings, Inc.. Here is what the firm stated about CrowdStrike Holdings, Inc.:

“CrowdStrike Holdings, Inc., a provider of cloud-delivered protection across endpoints and cloud workloads, surged ahead by 14%. They reported a very solid fiscal second quarter that was driven by increased demand for CrowdStrike’s cloud, identity, and next generation Security Information and Event Management (SIEM) products. Guidance was raised for the full year based on a strong pipeline, sales execution, and platform demand.”

9. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 71

Snowflake Inc. is among the 12 best artificial intelligence stocks to buy for 2024 according to financial media because of its robust growth potential. The cloud-based data platform provider outperformed revenue and earnings expectations in the third quarter, with revenue increasing 34% year over year and adjusted free cash flow increasing 78%. Snowflake Inc. now anticipates full-year revenue of around $2.6 billion, a 27% increase over the previous year. Snowflake Inc. expects revenue to be around $3.6 billion next year, citing increased AI adoption as a driver of demand for its data cloud products. Snowflake Inc. shares are up 40% in the last twelve months, and solid demand for its products suggests that the uptrend will continue in 2024.

Hedge fund confidence in Snowflake Inc. increased in the most recent quarter. Snowflake Inc. was in 71 hedge fund portfolios in the third quarter, up from 65 in the previous quarter, according to data from 900 hedge funds tracked by Insider Monkey.

8. Palo Alto Networks, Inc. (NASDAQ:PANW)

Number of Hedge Fund Holders: 79

Palo Alto Networks, Inc. is one of the best AI stocks to buy for 2024 because it is expected to benefit the most from AI technology. The share price of Palo Alto Networks, Inc. has increased 110% in the last twelve months. Palo Alto Networks, Inc. generated 20% year-over-year revenue growth in the September quarter, and its GAAP net income of $194.2 million increased significantly from its net income of $20.0 million in the year-ago period. Palo Alto Networks, Inc. anticipates a 17% increase in revenue in fiscal 2024 over the previous year.

In the third quarter investor letter, TimesSquare Capital Management, an equity investment management company, expressed its confidence in the full-year guidance of Palo Alto Networks, Inc.. Here is what the firm stated about Palo Alto Networks, Inc.:

“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”

7. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 92

Oracle Corporation (NYSE:ORCL) generated healthy returns for shareholders in 2023, with shares rising around 30%. Oracle Corporation appears to be the best artificial intelligence stock to buy in 2024, as enterprises seek to implement generative AI for productivity and efficiency. Oracle Corporation had signed more than $4 billion in contracts to sell its AI training capacity in the Generation 2 cloud as of the end of the September quarter, more than doubling the amount signed the previous year. Oracle Corporation anticipates a 29% to 31% increase in cloud revenue in the December quarter.

Aristotle Atlantic Partners, LLC, an investment management company, anticipated in its third-quarter investor letter that AI would drive growth for Oracle Corporation. Here is what the firm stated about Oracle Corporation:

“Oracle Corporation provides products and services that address enterprise information technology (IT) environments. The company’s products and services include enterprise applications and infrastructure offerings that are delivered worldwide through a variety of flexible and interoperable IT deployment models. The company operates in three segments: cloud and license business, hardware, and services.

We believe Oracle’s cloud infrastructure product, OCI 2.0, continues to demonstrate strong revenue growth over several quarters. Additionally, we see the rapid growth of artificial intelligence (AI) computing needs as being a differentiated growth driver for Oracle. We believe that Oracle will continue to drive positive outcomes for the Cerner business through a better margin structure, as well as topline sales synergies.”

6. Advanced Micro Devices, Inc. (NASADAQ:AMD)

Number of Hedge Fund Holders: 110

Advanced Micro Devices, Inc. (NASADAQ:AMD) stock has risen 130% in the last year because it is one the few companies capable of producing the high-powered GPUs required in data centers. Advanced Micro Devices, Inc. (NASADAQ:AMD) forecasts $2 billion in AI chip sales in 2024, versus Wall Street expectations of $1 billion to $1.5 billion. AMD is increasing its AI spending in an attempt to compete with its larger competitor, Nvidia Corporation, which is leading the AI race worldwide. The company’s latest MI300 processor may enable it to compete with its peers.

5. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 125

The rising demand for Salesforce, Inc.’s (NYSE:CRM) cloud-based AI solutions has helped the company’s stock price double over the past 12 months. The company claims that its goal is to create a single, integrated platform that combines CRM, data, AI, and trust. Salesforce, Inc. reported $1.25 earnings per share, a significant increase from $0.21 in the previous year. The company’s revenue increased by 11.2% to $8.72 billion. Salesforce, Inc. (NYSE:CRM) anticipates generating double-digit revenue and earnings growth in 2024. The company also anticipates generating a 30% growth in operating cash flows.

Hedge fund confidence in a cloud-based CRM company remained high. According to Insider Monkey data, it was in 125 hedge fund portfolios at the end of the third quarter.

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 180

NVIDIA Corporation stock has risen more than 230% in the last year as it has greatly benefited from AI technology. Its high-performance AI chips are in high demand in data centers. Its record revenue of $18 billion in the third quarter increased by 34% sequentially and by 209% year over year. Its record data center revenue of $14.51 billion was up 41% from the previous quarter and 279% from the previous year. Its fourth-quarter revenue is expected to hit a new record of $20 billion.

In the third quarter investor letter, Blue Tower Asset Management, an investment management company, expressed its confidence in the future fundamentals of NVIDIA. Here is what the firm stated:

“In addition to the use of larger datasets, the training speed of AI models has increased dramatically. NVIDIA Corporation’s stock almost tripled in the first 3 quarters of this year with a 197% gain, and a large reason for this is the huge role they have played in recent AI improvements. Nvidia’s single GPU AI training speed performance has increased by a dramatic 1000x in 10 years with only 2.5x coming from Moore’s Law3 driven increases in chip density. Besides better chip manufacturing, there were three other improvement factors at play: simplifications in number representation for the weights of the neural networks, more complex mathematical instructions for reducing the computational overhead involved in mathematical calculations, and increased neuron sparsity (in neural networks, some neurons are useless and can be pruned from the network without reducing performance significantly). In addition to these single GPU improvements, Nvidia also made improvements in data center scale architecture that allows groups of GPUs to work more efficiently together.

It is noteworthy that the vast majority of the improvement came from hardware architectural and software data improvements, rather than transition density. These improvements were likely the low-hanging fruit of training speed improvements as researchers will eventually converge on an ideal architecture. The simplification of going from 32-bit to 8-bit floating point numbers for measuring weights is a one-time gain that can’t be repeated again. I expect the rate of improvement to slow down over the next ten years and eventually approach the levels of Moore’s Law improvements in chip efficiency. The historical trend for computer hardware is for it to eventually be commoditized, and I believe this will eventually occur for Nvidia’s GPUs as well.”

3. Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders: 221

Alphabet Inc. is aiming to be a market leader in artificial intelligence technology, and it has been investing heavily to capitalize on strong demand. Alphabet’s generative AI model, Gemini AI, is one of OpenAI’s main competitors. It also has a division dedicated to cloud computing. Google’s potential investment in Character.AI, an emerging artificial intelligence chatbot startup, is part of its strategic investments in AI companies. In addition, the company has invested nearly $2 billion in Anthropic, a leading AI firm with its own chatbot.

In the third quarter investor letter, Diamond Hill Capital, an investment management company, expressed its confidence in Alphabet’s advertising and cloud businesses. Here is what the firm stated:

“On an individual holdings’ basis, top contributors to return in Q3 included long positions in KKR, Ciena Corporation and Alphabet. Shares of media and technology company Alphabet Inc. (NASDAQ:GOOG) rose in the quarter as its advertising and cloud businesses remain robust and the company delivered results ahead of market expectations. From a sector perspective, communication services also managed a positive Q3 (2%), riding the ongoing wave of positive mega-cap stocks’ performance, like Alphabet.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 286

Amazon has also been investing significantly in AI to compete for market share. It recently announced a $4 billion investment in Anthropic, an AI firm that has also gained Alphabet’s trust. Anthropic will use Amazon Web Services (AWS) for critical workloads. Amazon has also incorporated AI into its other products, such as the Alexa voice assistant.

Lakehouse Capital, a Sydney-based investment manager, mentioned Amazon in its third-quarter investor letter. Here is what the firm stated:

“The Fund’s largest position, Amazon.com, Inc., delivered an impressive quarterly result that came in well ahead of analysts expectations. Net sales increased 11% year-on-year to $134.4 billion and operating profits increased 133% year-on-year to $7.7 billion (vs the high end of guidance at $5.5 billion). Despite fears of a slowdown, growth within their core e-commerce business proved resilient and it was particularly encouraging to see progress on the cost front drive meaningful operating leverage. Management has been laser focused on driving efficiencies across the retail operation for the last 18 months and it’s now clear that these efforts are paying off with the company reporting its highest operating margin in two years. One notable initiative has been the regionalisation of their US fulfilment network from one national network to a series of eight separate regions serving smaller geographic areas, which has already delivered a 20% reduction in the number of touches per package and a 19% reduction in miles travelled.

When it comes to the company’s second largest segment, Amazon Web Services (AWS), revenue grew 12%, which is by no means earth shattering, but it was comforting as growth is now stabilising after six quarters of deceleration led by macro-driven customer optimizations. As we have mentioned before, we have always believed the recent AWS optimisation headwinds are more cyclical in nature, as opposed to anything fundamental, and a stabilisation in growth rates combined with a more upbeat outlook are strong evidence that this is likely the case. Bigger picture, we continue to believe that the market underestimates the length of the runway ahead in the core retail business (note that e-commerce sales in the US still only make up 15% of total retail sales) and that there is still significant margin expansion ahead as scale and efficiency benefits continue to come through.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 306

Microsoft Corporation (NASDAQ:MSFT) is a leading player in the artificial intelligence space and is ranked first among the best artificial intelligence stocks to buy for 2024 according to financial media. Microsoft has invested nearly $13 billion in OpenAI, the founder of the ChatGPT model. In 2023, the company has also invested in other AI startups such as Inflection AI and Builder.ai. Microsoft estimates that the company will make $10 billion from its partnership with OpenAI and other players in the AI space. Microsoft stock has risen by around 55% in the last year. Investors are also impressed by the company’s double-digit revenue and earnings growth.

Microsoft is the most popular stock among the more than 900 hedge funds tracked by Insider Monkey. As of the end of the third quarter, it was in 306 hedge fund portfolios, up from 300 the previous quarter.

You can also take a look at The 10 Best Telecom Companies to Invest In and Jim Cramer Stock Portfolio: 12 Recent Additions.