Jump on These AI Stocks If You Want To Be Rich in 5 Years
Artificial intelligence stocks have been on a roll for the past few months, mostly driving the market rally. Nvidia delivered record-breaking earnings on Feb. 21, with revenue rising to a staggering $22.1 billion. As of April 29, the stock was up a whopping 203.48%.
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But other stocks are also benefiting from the AI craze, and some of them are worth considering in the long run.
Alphabet
Alphabet’s financial stats (as of Apr. 29).
Market cap: $2.15 trillion
Year-to-date: 25%
Past year: 61%
Past month: 11%
Alphabet, Google’s parent company, released strong first quarter earnings on April 25. Said earnings beat analysts’ expectations, and were argued to have been fueled by the AI wave. The company also announced its first-ever dividend program of $0.20 per share that will be paid to stockholders on June 17, 2024, according to the earnings release.
Several analysts believe the stock still has room to grow, as GOBankingRates previously reported. CFRA Research said it maintained its Buy opinion on the stock and lifted its 12-month target to $190 from $175, according to an April 25 research note. Meanwhile, analysts at Wedbush Securities also raised their target prices to $205 from $175 and have an Outperform rating on the stock.
As The Motley Fool reported, Alphabet is well priced compared to others in the same realm, such as Microsoft.
In addition, The Motley Fool added that analysts are expecting growth in the next two years.
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Nvidia
Nvidia’s financial stats (as of Apr. 29).
Market cap: $2.19 trillion
Year-to-date: 82.14%
Past year: 203.48%
Past month: -2.91%
The stock’s skyrocketing ascent doesn’t seem like it will be stopping anytime soon, as shown in the company’s financial forecast, which predicts revenue to be $24 billion for the first quarter of fiscal 2025. The company’s next earnings are slated for May 22, and analysts are expecting another blowout report, according to Investor’s Business Daily.
In a February 21 call with analysts, CEO Jensen Huang indicated that generative AI has kicked off a whole new investment cycle — once which could see a further trillion dollars of infrastructure connected to AI generation factories.
“We believe these two trends will drive a doubling of the world’s data center infrastructure installed base in the next five years and will represent an annual market opportunity in the hundreds of billions. This new AI infrastructure will open up a whole new world of applications not possible today,” he said, according to a transcript of the call (via SeekingAlpha).
And as The Motley Fool noted, if he’s right, “Nvidia could realistically deliver a 5x return by 2030.”
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This article originally appeared on GOBankingRates.com: Jump on These AI Stocks If You Want To Be Rich in 5 Years
