Top 10 Artificial Intelligence Stocks to Watch in 2024

Are artificial intelligence stocks the future? No one is sure what the AI age will bring, but one thing is certain — AI stocks are very hot!

That’s why everyday traders want to know which artificial intelligence stocks to watch.

Let’s break down the basics first…

Artificial intelligence (AI) is an advanced form of computer processing. This technology includes machine learning and neural networks. AI is what allows computers to learn and solve problems like humans. It’s used in voice recognition, voice assistant technology, self-driving vehicles, and beyond.

It’s pretty clear in 2024 that AI will play a big role in the future of tech. So which AI stocks are worth watching? No doubt, there are plenty of players … but they’re far from equal.

Read on to uncover some of the best artificial intelligence stocks for your watchlist!

List of 10 Hot Artificial Intelligence Stocks to Watch in 2024

I focus on predictable patterns on small companies more than the big companies we list here. That said, we’re all about education. And news about one of the bigger AI stocks could lead to sympathy plays. Remember to do your homework.

Here’s the AI stock cheatsheet:

• What is the most promising AI stock?

A sector leader like NVIDIA Corp (NASDAQ: NVDA) is the best bet for the most promising AI stock. But remember, we’re traders, not investors. So the stocks on this list are ones we’re watching for short-term moves, not predictions of which will lead stock exchanges in 2030.

• What are the top 3 AI stocks to buy now?

My top 3 AI stocks to buy now (as long as their price action is strong) are Microsoft Corporation (NASDAQ: MSFT), Super Micro Computer, Inc (NASDAQ: SMCI), and CrowdStrike Holdings, Inc. (NASDAQ: CRWD).

• Which company is most advanced in AI?

NVIDIA is the most advanced publicly traded company in AI, that’s why it’s the sector leader. But other leading tech stocks like Apple, Microsoft, Google, and Facebook are all safe bets to pull ahead at some point.

• Which Artificial Intelligence stocks have a “Strong Buy” analyst rating?

Analysts tend to love these tech leaders — NVIDIA, Microsoft, Google, and Facebook. Most analysts have rated all of these stocks as “strong buys.”

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model in this article. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Now, here are 10 AI stocks to watch, in no particular order…

Super Micro Computer, Inc. (NASDAQ: SMCI) — The Massive IRIS Swing Trade Winner

My first AI stock pick is Super Micro Computer, Inc. (NASDAQ: SMCI).

Our IRIS algorithm is constantly scanning for the market’s hottest swing trade setups.

The system went live in July of 2023, and SMCI was its first alert. There was a buy signal at $325. All these months later it’s trading over 100% higher.

But hindsight is 20/20. Let’s focus on the most recent profit opportunity:

The price went vertical after the company announced new fiscal guidance for 2024.

Allegedly, the business expects to increase revenue by 100% in Q2 of 2024 to $3.7 billion.

The news broke on January 19 during premarket hours.

Look what happened next … 

Prices already spiked more than 200% — past $1,000 per share — before pulling back to their current levels.

That’s INCREDIBLE strength for a stock that was already priced at over $300 per share.

The move makes sense — if a business grows revenue by 100%, it’s easy to assume that the share price should increase.

Its short interest and relatively low float have also played parts in SMCI’s penny stock-like run.

But will it continue?

I don’t know. No one knows for certain.

With the strength we’re seeing in 2024 and the immense growth of this company, it’s very possible the share price pushes higher.

If you’re working with a small-account, no worries. There are still opportunities in this market among cheaper stocks.

I don’t trade options — I leave it to pros like tech entrepreneur and trader Ben Sturgill. His Spyder webinars are the product of more than 2 decades of experience in the market and a unique technology, and they’re well worth checking out.

Check out the webinar here to see why Ben’s smart-money scanner has been going haywire lately!

Amazon.com Inc (NASDAQ: AMZN) — The AI Cloud Stock at 52-Week Highs

My second AI stock pick is Amazon.com Inc (NASDAQ: AMZN).

Most people know Amazon for its online retail business. What your average Joe doesn’t know is that Amazon Web Services (AWS), its cloud computing service, accounts for an equal share of the company’s profits.

And in recent months it’s expanded into the AI services sector, providing yet another revenue stream for the tech giant.

Unlike some of the other tech stocks surging, AMZN has yet to make new all-time highs in 2024.

Prices gapped up 8% on February 2 after the company announced a bullish quarterly report.

It’s not a 100% guarantee that prices will hit new highs this year … 

But nothing’s ever guaranteed in the market. All we can do is follow the hottest trends, and protect ourselves in case we’re wrong.

Microsoft Corporation (NASDAQ: MSFT) — The AI Stock With ChatGPT Stake

My third AI stock pick is Microsoft Corporation (NASDAQ: MSFT).

Microsoft is one of the most famous tech companies in the world. And it owns a 49% stake in OpenAI, the makers of ChatGPT — which is the most famous AI tool in the world.

It rivals other sector hegemons like Apple Inc. (NASDAQ: AAPL) in overall tech. Its early 2024 returns have been middling, but I think there’s a chance to get in before prices shoot higher.

On January 31, the company announced bullish Q2 earnings for 2024. The company’s cloud computing service, Azure, helped the business grow 30% year over year.

But when the news came out on January 31, the price dropped.

Analysts expected to see better numbers from MSFT. That’s why the stock experienced a momentary downturn. The company is still posting impressive revenue numbers, it just didn’t match the predictions.

MSFT is still performing well in the current climate and despite the initial price action, I think the price could push higher as 2024 progresses.

CrowdStrike Holdings, Inc. (NASDAQ: CRWD) — The AI Cybersecurity Stock IRIS Swing Trade Winner

My fourth AI stock pick is CrowdStrike Holdings, Inc. (NASDAQ: CRWD).

This is another IRIS algorithm pick. And it’s pushed to new all-time highs in 2024.

The company works in cybersecurity.

Cybersecurity attacks are a growing threat for consumers, nations, and militaries. Especially now that AI exists.

The same factors that make AI attractive for businesses also makes it attractive for criminals.

The software is capable of problem solving at lightning speed. It’s possible there are already scammers out there using AI to bait unsuspecting individuals.

Companies like CRWD are receiving more attention as the whole world is under pressure to stay in front of these threats.

Arista Networks, Inc. (NYSE: ANET) — The Data Center AI Stock

My fifth AI stock pick is Arista Networks, Inc. (NYSE: ANET).

ANET started 2024 with a bang. And there’s a good chance it will continue.

AI requires massive computing power. That means it needs data centers like the ones ANET runs to house all of those servers.

It doesn’t have a headline-making deal like SMCI’s tie-up with Nvidia. But if profits continue to push higher, we may see some of the same price action.

Salesforce.com Inc. (NYSE: CRM) — The Customer Service AI Stock

My sixth AI stock pick is Salesforce.com Inc. (NYSE: CRM).

Salesforce offers Software-as-a-Service (SaaS) to companies. It uses AI to deliver leads and optimize customer service. Its Einstein software and recently acquired Bonobo AI leverages AI to help companies find and convert leads. 

The more companies use Salesforce to improve their bottom line, the more this artificial intelligence stock could grow.

Meta Platforms Inc. (NASDAQ: META) — The AI Giant in Waiting

My seventh AI stock pick is Meta Platforms Inc. (NASDAQ: META).

Meta Platforms, the company that owns Facebook and Instagram, has made major AI strides. AI has helped Meta’s social media platforms improve their feeds with machine learning and targeted ads. It’s now using its AI to categorize and filter posts, and using technology like deepfake detection and object identification in videos. 

Facebook aims to use its vast platform to become a top artificial intelligence stock and leader. As Mark Zuckerberg said on a recent earnings call, Meta estimates that the number of videos and pictures published on its platforms are greater than the resources that OpenAI and other large language models (LLMs) crawl in the common data set.

While that hasn’t translated into any killer consumer-facing products, you can bet they’re on the way.

META also recently announced a decent dividend of 0.42% and proved it can still spike in the process — gaining over 20% on the news! 

Alphabet Inc. (NASDAQ: GOOGL) — The AI Stock With the ChatGPT Killer LLM

My eighth AI stock pick is Alphabet Inc. (NASDAQ: GOOGL).

You can’t talk about artificial intelligence stocks without mentioning Alphabet. Google’s parent company is like Microsoft in that it’s ubiquitous. It also has a vast data set and targeted ads like Facebook. 

It’s used all this to create its ChatGPT killer, Gemini. There’s no telling how this AI arms race eventually stacks up, but we now know that Google has a horse in the race (apologies to Bard, Alphabet’s first ChatGPT competitor, as well as for the mixed metaphor).

Besides for its AI products, Alphabet leverages AI in all its products to make both the user and advertiser experience seamless. It also uses it to filter out spam and to show users more relevant ads.

This company knows having a lead in AI today can pay massive returns tomorrow. That’s why it continues to have one of the largest AI R&D budgets on this list.

NVIDIA Corp. (NASDAQ: NVDA) — The Sector Leader AI Stock

My ninth AI stock pick is NVIDIA Corp. (NASDAQ: NVDA).

Nvidia is the undisputed sector leader in AI, powering the entire sector. It’s the leader in graphics processing units (GPUs), originally designed as technology for general computing. It’s used its capability for parallel processing to branch out into artificial intelligence.

Now its GPUs have become an AI data center standard, powering everything from machine learning computers to healthcare imaging to autonomous vehicles. Major AI players on this list, like Amazon and Alphabet, continue to buy Nvidia’s GPUs for their own AI development. 

Nvidia also boasts a small dividend yield of 0.024% for investors. That makes it an exception to most tech stocks, even if META’s more generous dividend recently overshadowed NVDA’s.

Uber Technologies Inc (NYSE: UBER) — The Self-Driving Swing Trade Stock

My tenth AI stock pick is Uber Technologies Inc (NYSE: UBER).

The self-driving sector isn’t new.

But AI’s advent in 2023 brought new technology to the industry. That’s part of the reason we’re still looking at this catalyst.

Also, UBER is a popular company.

The chart keeps pushing to new highs in 2024.

Larger stocks don’t give us the same explosive moves as penny stocks. But there’s definitely an opportunity to profit from a swing-trade perspective.

Outline the key areas of support and resistance to start planning a trade.

Artificial Intelligence is an exciting new sector with plenty of potential. We’re just getting started with this incredible technology.

How to Find Up-and-Coming AI Stocks

You don’t have to be a super genius or computer scientist to find artificial intelligence stocks. You just need the right tools and education to find the best setups. 

It’s crucial to make a watchlist, create a trading plan, and maintain a trading journal. This helps you to refine and improve over time. You will make trading mistakes — what’s important is that you learn from them.

No one knows when AI stocks will become crazy hot. But when the sector starts running, its momentum will be tough to stop. More and more traders and investors will see the potential and jump on the bandwagon.

Keep an eye on artificial intelligence news for new developments. We developed the Breaking News chat feature just for this purpose. See how two skilled stock market pros can help you find the news with the most potential to move stocks. Here’s where you can learn more and sign up TODAY. 

Conclusion

These are the heavy hitters of artificial intelligence stocks. There’s so much room for growth in this sector … The technology is still in its infancy. And that will bring more promising AI penny stocks to trade. 

Today, your smartest AI move is to start by watching these stocks. And it’s only that — a starting point. This list of stocks to watch is NOT a recommendation to buy … It’s a guide to help learn to spot those big movers and hot opportunities.

There are a ton of ways to build day trading careers… But all of them start with the basics.

Before you even think about becoming profitable, you’ll need to build a solid foundation. That’s what I help my students do every day — scanning the market, outlining trading plans, and answering any questions that come up.

You can check out the NO-COST webinar here for a closer look at how profitable traders go about preparing for the trading day!

What do you think about trading artificial intelligence stocks? Comment below, I love to hear from all my readers!