The Top 3 AI Stocks to Buy in April 2024
Broader stock markets are getting slammed this month.
But investors finally have a shot at buying, at better prices, the same AI stocks that enjoyed breakthrough Q1 rallies. Those with long-term mindsets could get more value as they pursue the market’s most intriguing AI plays. This could prove profitable while they’re on the descent.
Following are three of the less obvious AI stocks. They may become considerably undervalued the longer this market wide sell-off goes. As AI euphoria dies down, dip-buyers may be treated to another AI rally at some point down the line.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) stock was demolished following its impressive first-quarter earnings results. It saw an impressive earnings beat with some cautious guidance. Indeed, investors probably wanted to see hiked guidance, not caution, ahead of its next (second) quarter. The more than 15% after-hours crash in META stock could prove a prime opportunity.
With Meta AI’s rather quiet launch, META is one of the best value stocks amid the long-term AI uprising. During the Q1 conference call, Zuckerberg was quick to shift focus to the long-term game. He spoke about its big bets on AI as well as the metaverse.
Indeed, META has been riding high on the back of AI. So some investors may have forgotten a core fact. Meta Platforms is a metaverse company, perhaps one of the best-positioned to thrive. With shares at $440 per share, META is a great bargain that’s misunderstood.
Apple (AAPL)
Speaking of misunderstood companies, Apple (NASDAQ:AAPL) doesn’t get enough credit. True, the company hasn’t launched its language model quite yet. And it’s been more than a year after ChatGPT changed the world as we know it. Some of the Apple bears may think Apple is behind in AI. Others may think the firm has no AI coming at all.
With Wednesday’s open-source release of OpenELM, Apple’s efficient language model, it’s about time to stop the harsh AI criticisms. The company has been contributing a great deal to the open-source AI community lately. Furthermore, it’s been super busy buying up AI startups.
The widely anticipated iOS 18 is rumored to be full of AI features and maybe a Siri successor. But it is still many months away. The stock continues to stand out as a potential value buy ahead of a pipeline of AI innovations. And those could change the public’s view of the iPhone maker.
Nvidia (NVDA)
Waiting for Nvidia (NASDAQ:NVDA) stock to cool off so that you can get a better price? Well, you may finally have a shot to punch a ticket to Jensen Huang’s GPU empire, with shares slipping over 16% off their recent highs.
With a potential “Blackwell boom”, the recent acquisition of Israel-based Run:ai is reported to be worth around $700 million. So, it’s becoming harder to sell NVDA stock on the latest bout of market weakness.
Indeed, the latest AI acquisition has me incredibly excited about the road ahead. Jensen Huang knows where the puck is headed next in AI. With this latest deal, Nvidia seems to have bolstered its AI workload management and optimization capabilities.
As we march forward, running AI models efficiently may be just as important as the maximum potential horsepower of the latest accelerators. With that, I think Nvidia is already on the right track.
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.
