Several major developments are shaping the AI landscape. AI stocks like Nvidia, Microsoft, Amazon, Alphabet, and IBM saw gains in 2024, with analysts suggesting further upside. The Invesco QQQ Trust, holding significant positions in Microsoft, Nvidia, and Apple, has attracted investments from billionaires like Ken Griffin. Smaller AI players such as C3.ai, which focuses on enterprise AI software and counts the U.S. military as a key client, and BigBear.ai, specializing in AI solutions for national security, are also drawing attention. Snowflake's stock is predicted by Morgan Stanley to jump, driven by AI-led growth in data warehousing under CEO Sridhar Ramaswamy. Amazon is investing $4 billion to enhance its delivery network using AI, targeting smaller cities and rural areas. TipRanks' AI tool rates Uber as 'Outperform,' citing strong financial health and strategic partnerships like the one with Waymo. Micron's DRAM business is booming due to AI demand, particularly through its partnership with Nvidia for HBM3E memory. Meanwhile, Meta's AI investments are under scrutiny, reflected in active trading of its stock by members of Congress. Finally, Bank of America is evaluating the potential impact of Apple acquiring or partnering with Perplexity AI.
Key Takeaways
- Nvidia, Microsoft, Amazon, Alphabet, and IBM AI stocks rose in 2024, with analysts predicting further gains.
- The Invesco QQQ Trust, with holdings in Microsoft, Nvidia, and Apple, has garnered billionaire backing.
- C3.ai, specializing in enterprise AI software, and BigBear.ai, focused on national security AI solutions, are gaining traction.
- Morgan Stanley forecasts a 20% increase in Snowflake's stock price due to AI-driven growth in data warehousing.
- Amazon is investing $4 billion in AI to improve its same-day and next-day delivery services.
- TipRanks' AI Stock Analysis tool gives Uber an 'Outperform' rating, highlighting strong financial health and the Waymo partnership.
- Micron's DRAM business is booming due to AI demand, boosted by its partnership with Nvidia for HBM3E memory.
- Members of Congress are actively trading Meta stock amid debates over the company's AI investments.
- Bank of America is assessing the potential benefits and drawbacks of Apple acquiring or partnering with Perplexity AI.
AI Stocks to Watch Now Nvidia, Microsoft, Amazon, Alphabet, IBM
AI stocks like Nvidia, Microsoft, Amazon, Alphabet, and IBM rose in 2024. Analysts recommend buying these stocks, with price targets above their current levels. Nvidia leads in GPUs for AI, while Microsoft uses AI to improve its products. Amazon uses AI for customer service, and Alphabet's Google uses AI for search. IBM uses AI to enhance its Watson platform.
AI Index Fund Invesco QQQ Trust Gains Billionaire Backing
Billionaires like Ken Griffin, Israel Englander, and Steven Cohen invested in the Invesco QQQ Trust, an ETF with AI stock exposure. The fund tracks the Nasdaq-100, including companies like Microsoft, Nvidia, and Apple. Historically, it has returned about 14.9% annually. Investing $400 monthly could grow to $384,000 in 20 years, but the fund can be volatile.
C3.ai and BigBear.ai Two AI Stocks Worth Watching
C3.ai and BigBear.ai are smaller AI companies gaining investor attention. C3.ai offers enterprise AI software and has shown strong revenue growth, with the U.S. military as a major customer. BigBear.ai provides AI solutions for national security. C3.ai is considered a safer investment due to its stronger balance sheet and revenue growth.
Morgan Stanley Predicts Snowflake Stock Jump Due to AI
Morgan Stanley upgraded Snowflake stock, predicting a 20% increase. They believe Snowflake's growth prospects have improved under CEO Sridhar Ramaswamy, especially with AI. AI is expected to drive growth in data warehousing, with a potential 20% compound annual growth rate through 2030. Analysts are generally positive about Snowflake, with many recommending it as a buy.
Amazon Invests in AI to Expand Rapid Delivery Network
Amazon is investing $4 billion to improve its same-day and next-day delivery services using AI. This aims to reach over 4,000 smaller cities and rural areas. Analysts predict a potential 16.25% upside for Amazon's stock. The average brokerage recommendation is 'Outperform,' but GF Value suggests a slight downside.
AI Tool Says Uber Stock Is a Strong Buy
TipRanks' AI Stock Analysis tool gives Uber an 'Outperform' rating. Uber's financial health is strong, with steady revenue growth and improving profitability. Strategic partnerships, like with Waymo for autonomous rides, are key growth drivers. Analysts have a bullish stance, with an average price target suggesting a 16% upside.
Micron's DRAM Business Booms Thanks to AI Demand
Micron's DRAM business is expected to grow due to high demand for AI memory and storage. The company's DRAM revenues are estimated to increase by 49.2% year-over-year. Micron's partnership with Nvidia for HBM3E memory is a major boost. However, its NAND business faces challenges due to oversupply and weak pricing.
Congress Members Trade Meta Stock Amid AI Investment Debate
Meta's focus on AI is causing debate among investors, with some excited about its potential and others concerned about costs. Members of Congress have actively traded Meta (META) stock, with 18 purchases and 15 sales in the last six months. Representative Marjorie Taylor Greene has been a notable buyer. This trading activity shows policymakers are closely watching Meta's AI strategy.
Bank of America Weighs Apple Acquiring Perplexity AI
Bank of America is considering the pros and cons if Apple (AAPL) were to buy or partner with Perplexity AI. The analysis explores potential benefits and drawbacks of such a deal for Apple.
Sources
- Which AI Stocks Are Set to Soar in the Second Half?
- Billionaires Are Buying an AI Index Fund That Could Turn $400 per Month Into $384,000
- Should You Buy These Beaten-Down AI Stocks?
- Morgan Stanley upgrades this AI play, says stock can jump more than 20%
- Amazon (AMZN) Expands Rapid Delivery Network with AI Investment
- Is UBER Stock a Buy? AI Analyst Gives the Green Light
- Will Micron's AI-Fueled DRAM Surge Offset NAND Challenges in Q3?
- Meta's AI Push Sparks Investor Debate as Members of Congress Actively Trade META Stock
- Apple acquiring Perplexity has both pros and cons: BofA (AAPL:NASDAQ)