Top 5 AI Stocks To Buy (Early 2024)

Summary

This video outlines the top 5 AI stocks with massive growth potential in 2024. It profiles Adobe's innovative generative AI tool Firefly, cybersecurity leader CrowdStrike, groundbreaking voice recognition company SoundHound AI, data analytics juggernaut Palantir, and Nvidia, an essential backbone of AI development. After analyzing each company's financials, market opportunity, and valuation, the host argues these picks have clear catalysts and upward momentum. He advises gradually accumulating shares on dips with prudent risk management rather than chasing unsustainable runs.

Takeaways

• 😊 The video covers the top 5 AI stocks set to dominate in 2024
• 📈 Adobe is an AI stock pick due to its new generative AI tool Firefly
• 🔒 CrowdStrike is a cybersecurity leader with strong financial growth
• 🗣 SoundHound AI stands out for its advanced voice recognition capabilities
• 📊 Palantir provides data analytics software used by major institutions
• 💻 Nvidia GPUs enable the computational power needed for AI development
• 😃 Good entry prices are provided for each stock pick in the video
• ⏳ Long term growth potential is emphasized over short term hype for these stocks
• 💰 Strong financials are highlighted as a key factor for the companies discussed
• 🤝 The video recommends Mumu trading platform for its range of features

Q & A

What are the key criteria used to select the top 5 AI stocks?

The criteria used were: clear catalysts/events coming up, relentless momentum, clearly uptrending business model, or other clear reasons to buy the stock.

What does Adobe Firefly allow users to do?

Adobe Firefly allows users to easily generate new graphics, color combinations, image expansions, and text effects in Adobe apps like Photoshop and Illustrator using simple text prompts.

How has CrowdStrike contributed to cybersecurity?

CrowdStrike has played a crucial role in investigating high-profile cyber attacks like the DNC hacks in 2016. It has also been actively involved in identifying and mitigating threats linked to Russian intelligence services.

What makes SoundHound AI's voice recognition technology stand out?

SoundHound AI's technology stands out for its ability to understand very natural human voice across various platforms and use cases like restaurant ordering, automotive solutions, and general voice assistance.

What are some key metrics highlighting Palantir's growth?

Key metrics include: 2.23 billion in revenue for 2023 (70% increase in US commercial revenue from Q4 2022 to Q4 2023), 305 million in adjusted free cash flow, 3.7 billion in cash reserves and no debt.

Why is Nvidia critical for AI development?

Nvidia GPUs offer the computational power necessary for deep learning and AI algorithms, enabling faster processing of large datasets. This capability is essential for training complex neural networks.

What were Nvidia's key financial highlights in its latest earnings report?

Key highlights were: 22% revenue increase to $22.1 billion, 49% data center revenue growth, 126% increase in full year revenue to $60.9 billion, 769% increase in net income, and 765% increase in earnings per share.

What platforms does Palantir offer?

Palantir offers two platforms called Gotham and Foundry that are utilized across over 40 industries worldwide.

What incentives does M1 Finance offer for new signups?

New M1 Finance signups get up to 15 free stocks, 5.1% base APY on uninvested cash, and 3% extra APY for 3 months.

What is the average analyst price target for Adobe stock?

The average analyst price target for Adobe (ADBE) stock is $653.

Outlines

00:00

😊 Introducing top 5 AI stocks to buy

The paragraph introduces the top 5 AI stocks to buy in 2024 that have growth potential. It mentions stocks like Adobe, CrowdStrike, SoundHound AI, Palantir, and Nvidia. It asks viewers to do their own research before investing and requests them to like, subscribe and comment on the video.

05:00

👍 CrowdStrike is a strong cybersecurity buy

The paragraph discusses cybersecurity stock CrowdStrike (CRWD) that offers cloud workload and endpoint protection. It talks about CrowdStrike's strong fundamentals including 35% revenue growth, 148% increase in net income. It notes top analysts ranking it a strong buy around current prices.

10:01

👂 SoundHound AI has huge upside potential

The paragraph discusses SoundHound AI (SOUN) which is a leader in voice AI technology, with ability to understand natural language. It highlights Nvidia's stake and collaboration with SoundHound for enhancing its voice capabilities. It notes SoundHound's current momentum cycle and huge long term upside.

15:01

🔮 Palantir is a long term AI powerhouse

The paragraph discusses Palantir (PLTR) and its platforms Gotham and Foundry used by top institutions for data analytics. It highlights Palantir's diverse clientele, 70% jump in US commercial revenue, and solid growth fundamentals. It notes Palantir has chance to be a mega-cap and gives buy zones below $20 or $25.

📈 Nvidia remains top AI stock pick

The paragraph discusses Nvidia (NVDA) which is critical for AI due to its computational power for neural networks. It highlights Nvidia's revenue growth, data center growth, increasing profits and EPS. It advises accumulating NVDA slowly on dips despite its strong upside potential.

Keywords

💡AI stocks

Stocks of companies involved in artificial intelligence. The video focuses on recommending top AI stocks to invest in for major growth in 2024. Examples from the script include Adobe, CrowdStrike, SoundHound AI, Palantir, and Nvidia.

💡generative AI

A type of artificial intelligence focused on creating or generating new content. Adobe's new Firefly software uses generative AI to help creative professionals generate graphics, images, and text effects.

💡cybersecurity

Protecting systems, networks, programs, devices and data from digital attacks. CrowdStrike provides cybersecurity solutions including cloud workload and endpoint protection.

💡voice AI

Artificial intelligence technology focused on voice recognition and processing voice commands. SoundHound AI's voice AI system stands out for understanding natural human voice.

💡data analytics

The analysis of raw data to find useful insights and trends. Palantir specializes in using AI to analyze big data sets for commercial and government clients.

💡deep learning

A type of advanced artificial intelligence based on neural networks modeled after the human brain. Nvidia's GPUs provide the computational power required for the data processing of deep learning.

💡GPU

Graphics processing unit. Nvidia is the leading supplier of GPUs which are essential hardware for artificial intelligence, especially deep learning.

💡profit growth

A key investment criteria - how rapidly a company's profits are increasing. The video analyzes profit growth forecasts to recommend the top AI stocks.

💡stock valuation

Assessing the value or price of a stock. Even for rapidly growing AI stocks, the video advises not to chase based purely on momentum and to analyze underlying valuation.

💡due diligence

Researching an investment thoroughly before committing capital. The video cautions viewers to do their own due diligence on the recommended AI stocks.

Highlights

Adobe recently introduced Adobe Firefly, which has really put it into the ring of AI leaders.

CrowdStrike has played a crucial role in investigating high-profile cyber attacks like the DNC hack.

SoundHound AI stands out with its voice AI technology, particularly in solutions like their restaurant ordering system.

Nvidia continues to hold a big stake in SoundHound AI, underscoring strategic alignment between them.

Palantir serves major defense institutions and commercial giants, with platforms used across 40+ industries.

Palantir has shown very impressive growth, with a growing list of clients and strong pipeline of contracts.

Nvidia holds an approximate 87% share in the GPU market, far outpacing competitors.

Nvidia is essential for AI because its GPUs offer the power for deep learning and AI algorithms.

Nvidia's profits are simply rising way faster than its stock price.

Nvidia reported record $22.1 billion revenue in Q3, a 22% increase year-over-year.

Nvidia's earnings per share and net income have surged massively year-over-year.

It's best to accumulate Nvidia stock slowly on dips rather than chase momentum.

Adobe, CrowdStrike, SoundHound, Palantir, and Nvidia are top AI stocks to watch.

Moomoo offers essential trading tools like market data, analysis, alerts and more.

Sign up with Moomoo using the link for free stocks and extra cash bonuses.

Transcripts

you better buckle up folks because in

today's video we are going to go through

the top five AI stocks for massive

growth in 2024 now these stocks all have

either clear catalysts clear events

coming Relentless momentum a clearly

uptrending business model or other clear

reasons to be bought some you've heard

of some you haven't some are big some

are small but all are extremely solid AI

picks I'll present each ticker what

price I believe each are good deals at

and then you need to go off and do your

own due diligence and form your own

opinions remember even the best stocks

go up and down in cycles and so if you

aren't employing smart risk management

and doing your own research and

preparing yourself well you're simply

going to get hurt and the only thing I

ask in return for all the work that goes

into making a video like this is that

you hit that ravishing like button and

also don't forget to subscribe also make

sure to let us know what your favorite

play ideas are in the comment section

down below let's go ahead and start with

number five adbe Adobe now you probably

don't think of adobe when you think of

AI stocks but it is actually one and it

is one of the most unique it's

increasingly a player in what's called

generative AI you probably know Adobe

for Photoshop or a number of its other

products within its Creative Cloud but

Adobe just introduced Adobe Firefly

which has really really put it into the

Ring of AI leaders Adobe Firefly is a

tool designed to empower creatives by

making it faster and easier to explore

create and iterate designs through the

Firefly web app it enables the

generation of new graphics color

combinations image expansions and text

effects in Adobe apps like Photoshop and

illustrator using simple text prompts

I've been using Adobe Photoshop myself

for years and quite frankly you can tell

that I make all these thumbnails myself

and I only really know how to do the

basics and something like a firefly can

help non-s savy users like myself design

things they're envisioning without

having to learn all the really

complicated technical stuff that many of

us have no patience for now Adobe says

users have already generated millions of

images using it since its launch last

March and it's likely in my view to

expand dramatically in coming quarters

and years in terms of the overall

business Adobe Creative Cloud

subscription base has grown impressively

to over 33 million paid members

demonstrating Adobe strong Market

position and the widespread adoption of

its services among creative

professionals worldwide very very

well-known and established brand name

that shoots out profits Adobe reported a

record revenue of

19.41% year-over-year growth this fourth

quarter alone saw a revenue of 5.05

billion their digital media segment

including Creative Cloud and document

Cloud was a significant growth driver

Adobe just reported generating 7.3

billion in operating cash flows during

this previous reporting year showcasing

its financial robustness and operational

efficiency so what exactly is a good

price for Adobe adbe well adbe is in a

nice selloff right now going from 638 to

530 I would argue anything at that key

495 level and below is a solid deal in

the 500 you're okay but above 600 you're

eating too much into your upside the

average analyst price target for adbe is

at 653 and if you're below 500 you have

some 32% of upside just to get to that

analyst price Target so if you're

looking at the stock you want to get it

somewhere at that key 495 level if not

below number four crwd crowd strike now

crwd is on a nice dipoo making it super

relevant right now for dip buyers this

company is a renowned cyber security

technology company that has made a

significant Mark in the field of cloud

workload and endpoint security threat

intelligence and Cyber attack response

Services founded with a mission to

reinvent security for the cloud era

crowd strike developed the crowd strike

Falcon platform which is a cloud native

intelligent security solution this

platform is designed to detect threats

and stop breaches positioning the

company as a leader in the space of

cyber Security Solutions that protect

and enable the Technologies driving

modern Enterprises with more and more

complex software and technology and AI

while you have more and more complex

vulnerabilities and crowd strike is

helping solve that problem the company

has experienced substantial growth and

recognition over the years crowd

strike's growth is also evident in its

funding rounds and valuation increases

over the years as well before going

public the company raised a total of 480

million buck Buck through various

funding rounds with significant

investments from Google in its series C

funding round by 2019 crowd strikes

valuation surpassed 3 billion

highlighting its rapid growth and the

confidence investors have in its

business model and services in terms of

its very very well-known contributions

to cyber security crowd strike has

played a crucial role in investigating

high-profile cyber attacks cyber attacks

including the Democratic National

Committee cyber attacks and has been

actively involved in identifying and

mitigating threats linked to Russian

intelligence Services making it one of

the top companies people think of today

when they think of cyber security

financially and what's really the most

important here is that crowd strike has

shown remarkable performance as of the

latest update in terms of the latest

earnings report well crowd strike

reported 35% increase in year-over-year

Revenue 148% increase in net income 145%

increase in diluted EPS a 135% increase

in net profit margin 105% increase in

operating income the company's focus on

cloud delivered Security Solutions its

successful track record in stopping

breaches and its continuous innovation

in cyber security Technologies make it a

notable player in the market and one

that you need to have on your radar

what's a good price to buy the Charlie

charito according to nasdaq.com 44

analyst rank crwd as a strong buy and

while the price Target is at about the

current price the truth is that analysts

tend to rush to upgrade the stock as it

reports beats and it's scheduled for

another report on March 5th which I

believe it'll beat on again and most

likely I think you're going to see the

stock go up a lot more just as all the

other companies in similar sectors and

in related sectors have gone up after

their earnings not all of them but most

of them right so now is an interesting

time to check out the stock number three

sound sound hound AI so s is a leader in

advanced voice enabled AI technologies

that enhances user interactions across

various platforms soundt AI stands out

with its voice AI technology

particularly in Solutions like their

restaurant ordering system Automotive

Solutions and various other voice

assistance markets there's a lot of

competitors in the space but their

system stands out specifically because

of its ability to understand very very

natural human voice and SoundHound AI

recently came into the spotlight again

because of the Revelation that nvda

continues to hold a big stake in it and

the two have a very very long history

nvda was one of its early funders and

nvidia's belief in sound toown AI

underscores a strategic alignment

between the two companies particularly

in leveraging nvidia's advanced GPU

technology for enhancing sound hounds

voice and AI capabilities this

collaboration shows sound Hound's unique

position in the voice recognition market

and Nvidia support emphasizes the

potential they see in sound hounds

technology and Market approach so what's

a good price for the sound of the Hound

well average price target for s n

according to tip ranks is at

$467 my take is it'll be able to climb

way way higher than that but it's going

to take some time and there's going to

be Cycles right now s is on a momentum

cycle which is unlikely to take it below

$3.50 again once you get a big Panic

sale though you'll certainly get to that

but until then this current momentum is

going to take you to higher and higher

highs and that's probably going to last

a few weeks at least my suggestion tight

stop loss if you're playing momentum

right now or simply wait until until the

next downturn for a good dip buy the

beautiful thing about the E and flow of

markets is you always get opportunities

to benefit from Euphoria and dysphoria

cycles and with this stock it's no

different with this stock you have a lot

of upside over the long-term time

Horizon and you have some short-term

momentum to play off of as well and

you're going to have some short-term

dips to get an even better deal at as

well which means this stock is a win-win

win for everybody all around number two

paler pltr now paler in my view has a

big chance of becoming a mega cap one

day in an era where data is more

valuable than gold paler technology

stands to make a killing paler harnesses

the power of AI to unlock the Mysteries

hidden within vast oceans of data with a

long and lucrative track record of using

its software to help government and

Commercial sectors to make more informed

decisions paler is not just any stock

it's a gateway to the future of

technology and security Now hyperbole as

side look folks paler serves a diverse

clientele including major defense

institutions like the US Army and

Commercial Giants such as IBM and Amazon

with 149 major customers across

government and Commercial segments paler

platforms Gotham and Foundry are

utilized across more than 40 Industries

worldwide obviously it's very very

difficult for folks like you and I to

understand all the complexities that go

into big data analytics but when we're

looking at it from a business

perspective and we're seeing all of

these major institutions using their

platforms well that's enough proof of

concept for us you look at the actual

numbers paler has shown very very

impressive growth they've got a growing

list of clients and a strong pipeline of

both government and commercial contracts

paler revenue streams are both diverse

and robust a lot of people complain

about their government streams but quite

frankly I mean if you look at the

overall cold hard math the overall

picture paler is growing rapidly with

2.23 billion in revenue for 2023 and a

notable 70% increase in US commercial

revenue from Q4 2022 to Q4 2023 well

paler demonstrates nothing but insane

strength in growth and an exponential

trajectory the company's robust

Partnerships and 305 million in adjusted

free cash flow coupled with 3.7 billion

in cash reserves and no debt underscore

its solid foundation and growth

prospects in the AI domain growth aside

when you're seeing a company with 3.7

billion in cash and cash reserves and

equivalents and no debt well you're

seeing a company that's responsibly run

and ready for bad periods of economic

hardship now in terms of price we've

been covering paler for years and I've

said paler is a deal is a good deal to

buy at almost every price area possible

during big dips during big rallies

during stagnation and the reason for

this is because I see the long-term

trajectory this company is on and I

believe that really even at all-time

highs for the stock the company's going

to be trading at many many many many

multiples higher I made a video a few

weeks ago on where I see paler going in

the short term and by the start of 2025

I see it at 51 bucks but over the coming

years and coming into the coming decades

paler in my opinion has a strong shot at

being a mega a mega cap but if you're

looking at short-term momentum and

you're looking out into 2025 well I

believe that it's going to be at 51

bucks so with that in mind in my opinion

at $25 or below you have more than a

double and upside potential at below 20

even better right so if you really want

to be very very cheap on this one I

would argue below 25 or below 20 okay

now number one nvda so there is perhaps

no stock in the market with more actual

real day success and future growth

potential in the AI Rush than Nvidia

Nvidia is essential for AI because its

gpus offer the computational power

necessary for deep learning and AI

algorithms enabling faster processing of

large data sets this capability is

critical for training complex neural

networks making Nvidia a Cornerstone of

AI research and development across

various Industries which are booming

right now in terms of formidable

competition there really isn't much I

mean Nvidia holds an approximate 87%

share in the GPU Market far outpacing

competitors like AMD and Intel now one

of the biggest mistakes that people have

been making for the last year plus with

nvda stock is looking at its price and

the insane trajectory it's been on and

assuming that it's an unjustified hype

stock that should be shorted while hype

certainly plays a role in nvidia's Rise

well the problem with assuming that

Nvidia is all hype is that its profits

are simply Rising way faster than than

its stock is the truth is folks that our

economy whether you acknowledge it or

not is in the middle of a fundamental

shift where more and more corporations

need to adopt to AI or die and that's

only going to get worse and worse and

worse and nvidia's PE ratio has been

going down since mid last year despite

the stocks rapid rise simply because

again the profits are rising way way

faster than the stock can adjust so as

fast as Nvidia stock is going up it's

quite frankly just getting cheaper if

you look at this chart from Bloomberg it

shows that you're getting more earnings

than you have and many points in the

last year for every dollar of market cap

at the earnings report yesterday nvda

reported that quarterly Revenue reached

a record $22.1 billion a 22% increase

from Q3 and a 2 165% Surge from the

previous year that data center Revenue

achieved a record 18.4 billion for the

quarter marking a 27% rise from Q3 and a

staggering 49% growth year-over-year

that annual financials full year Revenue

stored by 126 to$ 60.9 billion with gap

EPS of 586 and non-gap eps up 288 from

the previous year that gross margin

improved to 76% in Q4 from 74% in Q3 and

up significantly from 63.3% the previous

year that net income Q4 net income

jumped to 12.3 billion a 33% increase

from Q3 and a

769 increase year-over-year that

earnings per share Gap diluted EPS for

Q4 was $493 up 33% from Q3 and up

765 from the previous year so the

problem right now is a lot of folks in

the market are still looking at nvda and

they're saying wow this 275% increase in

stock price year-over-year is simply not

sustainable the problem is that a lot of

its underlying metrics are up a

correspondingly larger amount when your

net income is jumping 769 year-over-year

and expect it to continue ballooning

when metric after metric after metric

suggests more and more exponential

growth well it's very very difficult to

say that a 275% valuation increase isn't

going to continue to see upside nobody

is going to say that it's going to

continue rallying to 275% or 400% or

500% a year of course not there's only

so many trillions in market cap a

company can get but when you're looking

at a company like Nvidia and you're

thinking it's going to top out now and

never go up again and then you're

looking at all the potential profits it

can make if AI continues to balloon well

something's got to give and what's going

to give is that nvda over the coming

years and especially over the next

decade is going to hit newer and newer

and higher and higher high it's just

simply going to have big dip Cycles in

between so if you are looking for an AI

stock to really benefit from this

massive economic shift we're seeing

right now while nvda continues to be one

of the biggest now with all of that

aside that doesn't mean that it's okay

to chase let nvda momentum take a

breather there is no rush here my view

on this is it's best to accumulate

stocks like nvda slowly on dips and

simply enjoy the momentum with clear

risk management and a clear time Horizon

if you're somebody playing the

short-term momentum have very very tight

stop losses and just lock in profits as

it goes up even if you believe a company

is going to 10x in the next 10 years who

cares buy it slowly on dips why are you

in such a rush that is my viewpoint nvda

again I get that it's up a lot but if

you look at it by many other metrics

it's cheaper than it has been in other

points of the last year and by quite a

lot so make sure that when you're

looking at a company that's going up

look at the underlying numbers and see

if it justifies it with with nvda yes

there's a lot of hype pushing the stock

up right now but if you look at the

valuation and you look at how fast its

underlying business is growing well

there's a lot of reason for that hype

and if you look at what it's likely

going to be doing in the coming years

there's a lot of justification as well

so things to think about and there you

have it folks the top five AI stocks set

to dominate in 2024 from adobe's

Innovative leap into generative AI with

firefly through crowd strike's

unwavering commitment to cyber security

to SoundHound AI groundbreaking voice

technology to paler data analytics

Supremacy and topping it all off with

Nvidia well you got a lot of companies

to look over today and do your own due

diligence on let us know what your

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a great rest of your day and we will see

you in the next video we appreciate each

and every single one of you make sure to

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