2024-04-05 18:18:42 ET
Statista forecasts exceptional growth in the artificial intelligence market over the next few years. Here are the three U.S. based top AI stocks to benefit from that expected rally in 2024.
Meta Platforms Inc (NASDAQ: META)
Meta makes up to our list of top three U.S. AI stocks to buy in 2024 because it’s inexpensive to own even though it has more than doubled in the trailing twelve months.
The social media behemoth is investing rather aggressively into artificial intelligence. It’s working tirelessly to position itself right at the heart of the so-called metaverse – has dedicated teams working on AR/VR devices and have recently rolled out Gen AI solutions for advertising as well.
What makes $META a particularly great pick for AI exposure is the fact that it ended last year with over $65 billion in cash, equivalents, and marketable securities. Let’s face it: it takes an outrageous amount of money to develop artificial intelligence solutions.
At 13 times its estimated 2025 cash flow – Meta stock is currently about 11% cheaper than its average multiple over the past five years.
Palantir Technologies Inc
Palantir is starkly different than Meta Platforms as a top U.S. AI stock considering it’s not a cheap name to own.
But the big data analytics giant fully tapping on artificial intelligence to drive demand and accelerate growth as evidenced in a new partnership it announced with Oracle Corp this week as Invezz reported here .
$PLTR has already turned sustainably profitable in recent quarters even though its Artificial Intelligence Platform (AIP) is currently in the early innings only.
Watch here: https://www.youtube.com/embed/MxraZmkCWfg?feature=oembedAs the New York listed firm continues to invest in AI on the back of its long-term debt free balance sheet, it will improve its profitability further that will likely translate to a higher share price. Wall Street, however, has a consensus “hold” rating only on Palantir stock.
Adobe Inc (NASDAQ: ADBE)
Adobe is an attractive U.S. AI stock particularly now that it has declined some 25% versus its 52-week high.
The $217 billion company based out of San Jose, California is seeing accelerated demand for its flagship products like Photoshop and Illustrator on the back of its generative machine learning model called “Firefly”.
$ADBE has also improved its “Analytics” segment with Sensei AI and has recently launched an artificial intelligence enabled assistant to make it easier to work with PDFs as well. As evident, the Nasdaq-listed firm is integrating AI into its products in several ways.
Joseph Bonner – an Argus analyst recently cited AI tailwinds and said Adobe stock could climb all the way up to $675 which suggests a whopping 40% upside from here.
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