Not Just Nvidia: 3 More Hot AI Stocks Set to Sizzle in 2024
As one of the top hot AI stocks. Nvidia‘s (NASDAQ:NVDA) epic rally continues. Many investors may wonder where the puck could be headed next in the artificial intelligence (AI) scene. At this pace, it may not be long until the AI chip giant becomes a $3 trillion company. Just how much room does the firm have to run, as only a handful of companies larger than it remains?
In any case, AI stands to benefit more than just the world’s leading graphics-processing unit (GPU) maker. Many firms from various industries have been investing heavily in their AI capabilities. And these days, it’s hard to imagine a tech firm that doesn’t have an AI strategy. For now, though, it’s still unclear when AI will start to power earnings and how long the AI boost will last.
This piece will look at three hot AI stocks that could sizzle this year.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) has been sizzling hot this year, now up more than 240% year to date. Those are some insane gains, and while the company has been outpacing the great Nvidia lately, SMCI stock is a tad too hot for most investors to handle.
Recently, Barclays noted that Super Micro Computer’s sheer speed to market may be a source of its “strongest moat.”
Undoubtedly, Super Micro Computer stock seems like Nvidia on steroids these days. And though there are intricacies in the data center that Super Micro has dealt with better than many competitors (customization, resource-saving designs and liquid cooling technologies), I’m just uncomfortable betting on a stock that’s more than tripled in a few months.
Though I don’t doubt the firm’s ability to get up to speed with the latest Nvidia Blackwell B200 chips, there’s already so much expectation baked into the stock. Anything less than that could cause wild swings whenever perfection is priced in.
Reddit (RDDT)
Reddit (NASDAQ:RDDT) went public last week with a bang, finishing up big on its debut day before plunging around 9% on Friday. It’s more than just a popular forum to discuss specific topics; Reddit is an intriguing source on the web that many AI-based search engines may crawl for a bit of human perspective.
While you could gain such a perspective from various social media platforms, Reddit seems to have the perfect formula for useful information that AI models may use when answering users’ questions. Additionally, the company stands to improve its platform by incorporating AI tools for personalization and enhanced content moderation.
With Sam Altman, OpenAI’s top boss and one of the biggest AI visionaries, also reportedly an early investor in the firm, it’s tough to overlook the AI growth possibilities as the firm looks to show the public the type of growth it’s capable of. The early IPO sizzle makes RDDT stock a tad too hot for me. So, I’d look for more of a pullback before considering entry.
Apple (AAPL)
With the Department of Justice (DoJ) suit over an alleged “monopoly power” fresh in the minds of Apple (NASDAQ:AAPL) stock investors, many stand to be distracted from the firm’s long-term game plan. Almost one quarter into the year, Apple is still arguably the Magnificent Seven firm with the least clear AI game plan.
It has one, and more details on specifics could add some sizzle to the stock. For now, Apple is playing from behind so far in 2024. And it’s unclear if it’ll be able to finish 2024 in the green without an AI game plan that has anything short of a “breakthrough.” Perhaps the breakthrough could lie in AI features for its new Vision Pro headset. I certainly wouldn’t doubt it.
With Nvidia’s Omniverse coming to Vision Pro, the AAPL stock investors may have another catalyst to add to the bull case as the spatial-computing device looks to take on the enterprise world.
The Omniverse for Vision Pro is a big deal, a far bigger deal than the DoJ suit, which could prove nothing more than a thorn in the firm’s side for the next couple of years.
On the date of publication, Joey Frenette held shares of Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
