15 Best Artificial Intelligence Stocks To Buy In 2024: Pros & Cons

by Vinovest Council

Artificial Intelligence (AI) stocks have become one of Wall Street's most popular investment options in 2024.

Artificial intelligence stocks (AI stocks) are shares of companies that are developing and using AI and related technologies like machine learning and deep learning. These artificial intelligence companies include chipmakers, software companies, cloud computing firms, and even AI trading platforms.

Why are these stocks in demand?

The AI technology market is projected to grow at a tremendous pace – leaping from $69 billion in 2022 to $1,800+ billion by 2028. Investing in AI stocks can be a great way to get exposure to this market.

Let’s explore 15 top AI stocks in 2024 and the pros and cons of investing in them.

Plus, we'll explain why fine wine is another exciting alternative investment you should consider.

1. Adobe Inc. (NASDAQ: ADBE)

Adobe is a software company that develops and markets computer software, mainly for digital content creation.

It’s a leading provider of cloud-based AI-powered tools and services for creative professionals — including the widely popular Adobe Photoshop and Adobe Premiere Pro.

5-Year Stock Performance Chart

Source: Google Finance

About the company

Headquarters: San Jose, California, United States
Market Cap: $219.71 billion
Top AI offerings: Adobe Sensei, Adobe Firefly

Company fundamentals

Avg. Volume: 3.54 million
P/E Ratio (TTM): 46.78
Earnings Per Share (TTM): 10.25
Forward Dividend & Yield: N/A

2. International Business Machines Corporation (NYSE: IBM)

IBM is a global information technology (IT) and innovation leader that provides computer hardware, software, infrastructure, and hosting services.

IBM’s AI capabilities, particularly its Watson platform, have been applied across industries with remarkable outcomes. The company recently showcased its enterprise-grade Generative AI (GAI) offering — Watson X.

5-Year Stock Performance Chart

Source: Google Finance

About the company

Headquarters: Armonk, New York, United States
Market Cap: $123.46 billion
Top AI offerings: IBM Watson Discovery, IBM Watson Code Assistant

Company fundamentals

Avg. Volume: 4.44 million
P/E Ratio (TTM): 58.56
Earnings Per Share (TTM): 2.24
Forward Dividend & Yield: 6.64 (5.06%)

3. C3.ai Inc. (NYSE: AI)

C3.ai is a leading provider of enterprise-grade AI applications to drive digital transformation across industries, including supply chain and financial services.

Industry experts have consistently praised C3.ai's AI capabilities, and several Fortune 500 companies use its platform. The company’s stock prices have soared in the first half of 2023, creating massive hype around its future growth.

5-Year Stock Performance Chart

Source: Google Finance

About the company

Headquarters: Redwood City, California, United States
Market Cap: $4.27 billion
Top AI offerings: C3 AI Cash Management, C3 AI Anti-Money Laundering

Company fundamentals

Avg. Volume: 4.44 million
P/E Ratio (TTM): N/A
Earnings Per Share (TTM): -2.54
Forward Dividend & Yield: N/A

4. Alphabet Inc Class A (NASDAQ: GOOGL)

Alphabet Inc, the multinational parent company that holds Google and its subsidiaries, is a conglomerate operating in various industries.

Alphabet has made deep investments in AI and machine learning technologies. For instance, Google Cloud offers AI and machine learning services to businesses, and the company's research lab, DeepMind, leads AI research in various fields.

Besides, in early-2023, Google invested $300 million in Anthropic, the AI firm founded by former OpenAI researchers.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Mountain View, California, United States
Market Cap: $1.58 trillion
Top AI offerings: Google Bard, Vertex AI

Company Fundamentals

Avg. Volume: 33.6 million
P/E Ratio (TTM): 27.02
Earnings Per Share (TTM): 4.50
Forward Dividend & Yield: N/A

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

Amazon.com, Inc. is a multinational technology company that operates in a wide variety of industries, including e-commerce, cloud computing, digital streaming, and AI.

The company is known for its AI-driven Alexa virtual assistant and product recommendation engine for Amazon's e-commerce store.

The company's stock has been on the rise since its inception in 1994, consistently outperforming the S&P 500.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Seattle, Washington, United States
Market Cap: $1.33 trillion
Top AI offerings: Amazon Rekognition, Amazon Kendra

Company Fundamentals

Avg. Volume: 62.50 million
P/E Ratio (TTM): 316.48
Earnings Per Share (TTM): 0.41
Forward Dividend & Yield: N/A

6. Meta Platforms Inc (NASDAQ: META)

Meta Platforms Inc., formerly known as Facebook, is a social media company that uses AI to power its products and services.

Meta is investing heavily in the development of the Metaverse — its flagship virtual reality (VR) social platform.

The company uses its AI capabilities to improve its advertising targeting, personalize its newsfeed, and develop new virtual reality experiences.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Menlo Park, California, United States
Market Cap: $735.90 billion
Top AI offerings: Meta AI Voicebox, I-JEPA

Company Fundamentals

Avg. Volume: 22.48 million
P/E Ratio (TTM): 35.55
Earnings Per Share (TTM): 8.00
Forward Dividend & Yield: N/A

7. Intel Corporation (NASDAQ: INTC)

Intel Corporation is a multinational technology company that develops and manufactures computer processors and other semiconductor components.

Intel has been actively involved in the development of AI chips to cater to the growing demand for AI computing capabilities.

Intel acquired an AI & ML focused chip startup Habana Labs for $2 billion in 2019 — which now serves as their Center of Excellence in AI efforts.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Santa Clara, California, United States
Market Cap: $144.94 billion
Top AI offerings: Intel Neural Compute Stick 2, Habana Gaudi2

Company Fundamentals

Avg. Volume: 46.47 million
P/E Ratio (TTM): N/A
Earnings Per Share (TTM): -0.70
Forward Dividend & Yield: 0.50 (1.52%)

8. Microsoft Corp (NASDAQ: MSFT)

Microsoft Corporation is a multinational technology company that develops, licenses, and sells computer software, hardware, and related services.

Microsoft is not only improving its flagship products, such as Office 365, with AI capabilities but also doubling down on its investment in the AI sector.

The company has struck a multi-year, multi-billion dollar investment deal with OpenAI – the tech startup behind the Generative AI tool ChatGPT.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Redmond, Washington, United States
Market Cap: $2.49 trillion
Top AI offerings: Azure AI, Microsoft Designer

Company Fundamentals

Avg. Volume: 27.77 million
P/E Ratio (TTM): 36.10
Earnings Per Share (TTM): 9.28
Forward Dividend & Yield: 2.72 (0.82%)

9. NVIDIA Corporation (NASDAQ: NVDA)

NVIDIA Corporation is a leading provider of graphics processing units (GPUs) and AI computing chips.

The company also offers a suite of AI development tools, as well as pre-trained AI models, which are being increasingly used to build a variety of applications across industries.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Santa Clara, California, United States
Market Cap: $1.04 trillion
Top AI offerings: NVIDIA DGX Cloud, NVIDIA AI Enterprise

Company Fundamentals

Avg. Volume: 46.84 million
P/E Ratio (TTM): 222.15
Earnings Per Share (TTM): 1.90
Forward Dividend & Yield: 0.16 (0.04%)

10. Micron Technology Inc (NASDAQ: MU)

Micron is a leading manufacturer and provider of innovative memory and storage solutions. In recent years, Micron has been expanding its presence in the AI space.

In 2020, Micron invested in Atlas AI — a company that uses AI and ML to simplify geospatial data, providing vital insights to its public and private sector customers. In early 2023, it announced an investment of $3.6 billion in Japan to enable generative AI applications and other end-to-end tech innovations.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Boise, Idaho, United States
Market Cap: $71.44 billion
Top AI offerings: Micron AC Series HPC Modules, Micron Intelligent Edge

Company Fundamentals

Avg. Volume: 18.60 million
P/E Ratio (TTM): 46.30
Earnings Per Share (TTM): 1.41
Forward Dividend & Yield: 0.46 (0.70%)

11. Oracle Corporation (NYSE: ORCL)

Oracle Corporation is a global leader in enterprise software and cloud computing.

Oracle has had a long-standing partnership with Nvidia, where they collaborate on helping clients with speedier AI adoption.

The collaboration brings Nvidia’s advanced computing stack — from GPUs to its AI system — to Oracle Cloud Infrastructure (OCI).

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Austin, Texas, United States
Market Cap: $322.02 billion
Top AI offerings: Oracle Digital Assistant, OCI Speech

Company Fundamentals

Avg. Volume: 10.04 million
P/E Ratio (TTM): 39.16
Earnings Per Share (TTM): 3.03
Forward Dividend & Yield: 1.60 (1.33%)

12. Palantir Technologies Inc (NYSE: PLTR)

Palantir Technologies Inc is a US-based software company that specializes in providing data analysis and AI and ML-related services to various industries.

The AI company is famous for Gotham — an AI solution that helps finds patterns in disparate data, improving decision-making across domains.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Denver, Colorado, United States
Market Cap: $29.72 billion
Top AI offerings: Palantir AIP, Palantir Gotham

Company Fundamentals

Avg. Volume: 69.81 million
P/E Ratio (TTM): N/A
Earnings Per Share (TTM): -0.12
Forward Dividend & Yield: N/A

13. Tata Elxsi Ltd (NSE: TATAELXSI)

Tata Elxsi is an Indian outsourcing company that specializes in global design and AI services.

The company provides AI application software and frameworks, including AI-based video Analytics, AI Driver Management System, Conversational AI - SymanTEx, and more.

Tata Elxsi Ltd. is listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on the Indian stock market.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Bengaluru, Karnataka, India
Market Cap: $5.68 billion
Top AI offerings: SymanTEx, AIVA

Company Fundamentals

Avg. Volume: 69.81 million
P/E Ratio (TTM): 61.73
Earnings Per Share (TTM): 121.21
Forward Dividend & Yield: 60.60 (0.81%)

14. UiPath Inc (NYSE: PATH)

UiPath specializes in AI software solutions and robotic process automation (RPA).

Despite the economic slowdown, UiPath has maintained its growth trajectory in Q1 2023, with its year-over-year annual recurring revenue (ARR) increasing by 28%.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: New York, New York, United States
Market Cap: $8.83 billion
Top AI offerings: UiPath Automation Cloud, UiPath Assistant

Company Fundamentals

Avg. Volume: 9.5 million
P/E Ratio (TTM): N/A
Earnings Per Share (TTM): -0.41
Forward Dividend & Yield: N/A

15. Kellton Tech Solutions Ltd (NSE: KELLTONTEC)

Kellton Tech is an Indian IT and outsourcing company that offers several AI-powered tools and services to help businesses transform raw data into valuable intelligence.

The company has been recognized by Forbes Asia as one of the Top 200 companies in their 'Best Under a Billion' list.

5-Year Stock Performance Chart

Source: Google Finance

About The Company

Headquarters: Hyderabad, Telangana, India
Market Cap: $72.60 million
Top AI offerings: UiPath Automation Cloud, UiPath Assistant

Company Fundamentals

Avg. Volume: 581,451
P/E Ratio (TTM): N/A
Earnings Per Share (TTM): -13.26
Forward Dividend & Yield: N/A

Disclaimer: The data provided above is for informational purposes and is subject to change with market fluctuations. It’s not intended as investment advice.

Why Should You Invest in AI Stocks? (3 Key Advantages)

Here are three key reasons to invest in AI stock options:

1. Massive Growth Prospects

AI is a disruptive technology with tremendous growth potential. Consider these mind-boggling stats and trends:

According to a report by McKinsey & Company, AI technology could boost the global economy by $13 trillion by 2030.
According to Precedence Research, the global AI market is expected to reach USD 1,871.2 billion by 2032 — expanding at a CAGR of 39.1%.
Generative AI platform ChatGPT, which launched in November 2022, reached 100 million users in record time, becoming the fastest-growing application in history

Besides, further advancement in AI research is expected to drive a surge in demand for AI-based products and services. This means that AI stocks are well-positioned to benefit from this growth.

2. High Return Potential

This immense growth potential could provide a tailwind for AI stocks, leading to substantial gains for investors.

And the 2023 trends reaffirm this.

For instance, the shares of Nvidia Corp — a global leader in the AI hardware space — have soared 110% in 2023.

Business analysts credit the ‘buzz around AI’ to rising tech stock prices and fueling the 2023 growth of the S&P 500 — after a dismal 2022 performance.

3. Portfolio Diversification

AI stocks can help to diversify your investment portfolio and mitigate risk.

How?

AI, machine learning, and other related technologies can enhance nearly any industry, from healthcare to supply chain management. Besides, there are many different AI stocks to choose from, providing investors with diverse investment opportunities.

You could also invest in an artificial intelligence ETF (exchange-traded fund) to gain exposure to the best AI stocks without trading individual stocks.

Interestingly, some of these AI ETF options, like Qraft AI Enhanced U.S. Large-Cap fund, use an AI algorithm to pick their stocks.

Does that mean the AI sector is entirely risk-free?

Not really.

Possible Disadvantages of Investing in AI Stocks

While investing in AI stocks can offer significant rewards, there are some risks to consider:

The AI market is a nascent and volatile one, meaning that AI ETFs are prone to sharp price swings that can be risky for investors.

Besides, the AI sector lacks regulatory scrutiny – unlike sectors like healthcare or finance. So, future policy changes in the AI industry could affect the stability of your investments.

To add to that, AI is a relatively new technology with insufficient historical data. This makes it tough for you to evaluate investment choices

So, while AI stocks are hot, you must look at other investment options that are more stable and independent of market fluctuations.

What would be a good bet?

Wine investing is a great alternative investment that will balance out your portfolio.

Fine Wine: An Excellent Alternative Investment

Fine wine is a non-correlated asset that has historically grown steadily, unlike traditional assets like gold or stocks.

Consider these statistics:

During the COVID-19 recession, the Dow Jones and S&P 500 fell by 22.7% and 19.6%, respectively, while fine wine only declined by 1.4%.
According to the Liv-ex 1000 index, fine wine has appreciated by over 320% between 2004 and 2021, equating to an average return of approximately 18.8% over the 17-year period.
On the Cult Wines Global Index, fine wine ended 2022 with a 20.54% annual return, outperforming both traditional financial and alternative assets.

Investing in fine wine can also help diversify your portfolio and hedge against inflation.

Moreover, the demand for the finest wines outweighs the supply. It’s because major wine-producing regions, like Bordeaux and Burgundy in France, have strict production regulations and limited vineyard space.

And wine auctions reflect this demand and supply gap:

A 200-year-old bottle of 1811 Chateau d’Yquem sold for an impressive $117,000 in a 2011 auction.
A rare bottle of the 1945 Domaine de la Romanée-Conti sold for an astonishing $558,000 at a Sotheby’s auction in 2018.

So how do you invest in fine wine?

Simple!

Through a trusted wine investing platform like Vinovest.

Hassle-Free Fine Wine Investing with Vinovest

Vinovest is a leading wine investment platform that lets you invest in sought-after wines from all around the world, whether you’re looking for a classic Nebbiolo, Chardonnay, or a rare Screaming Eagle.

Vinovest is an AI-powered wine investment platform that lets you invest in high-return wines that historically outperform the market.

Here’s how you can get started:

Sign up on the Vinovest website.
Answer a short questionnaire to help the Vinovest team create a personalized portfolio for your investment strategy and style.
Top up your account with a minimum of $1,000.
Sit back and enjoy a glass of your favorite wine while your portfolio grows.

What about ths safety of your wine bottles?

Vinovest stores your wines in climate-controlled bonded warehouses that don’t charge excise duty or VAT.

And if you fancy a bottle from your collection for personal enjoyment, Vinovest will ship it to your doorstep. The best part is that you get 100% ownership of your wines.

Visit the Vinovest website and start investing today!