Grab a coffee and listen up, folks! In the uber-competitive realm of the stock market, AI stocks are the darlings everyone is clamoring for. They’re like the golden ticket; their allure is irresistible. The impact of AI is omnipresent, reaching all corners of industries, from healthcare and banking to real estate. Undoubtedly, AI’s applications are boundless. Now, with the new year upon us, the real question is, will the 2023 AI sweethearts keep the crown, or will there be a fresh lineage of AI stocks leading the pack? Investors are itching to bag the top AI stocks for sustained growth. And we’ve got the lowdown on three GPU efforts that are poised to rule 2024.
Altair Engineering (ALTR)
Cue the drumroll for Altair Engineering (NASDAQ: ALTR), a world leader in Artificial Intelligence and computational science. This maverick in AI and computational science has revolutionized cloud solutions and high-performance computing (HPC). Specializing in data analytics, simulation software, and optimization products, Altair Engineering tantalizes a diverse clientele.
ALTR’s latest offering, HPCWorks 2024, features an enhanced user interface and functionality with integrated AI. This integration streamlines workflow distribution and optimizes cloud scaling. The company also extends its expertise to offer client engineering services, supporting customers over the long haul.
Financially, ALTR has reported a robust 14.8% Year-over-Year (YoY) growth in software product revenue and a 12.3% total revenue growth YoY. Non-GAAP metrics further testify to a 126.3% surge in adjusted EBITDA and a 197.0% spike in net income YoY. Analysts are swooning over ALTR, touting it as a “Strong Buy” with a projected high target price of $95.00. It’s a growth story worth reckoning with, and we reckon you don’t want to miss out. So, we cautiously advocate ALTR as a one-of-a-kind AI stock for enduring growth.
Super Micro Computer (SMCI)
The Rise of AI Stocks in 2024
Super Micro Computer (SMCI)
The era of artificial intelligence (AI) has dawned, and investors are fervently seeking opportunities to capitalize on this technological boom. While many companies directly involved in AI, like Nvidia, are in the limelight, Super Micro Computer (NASDAQ: SMCI) has been quietly making strides as one of the primary beneficiaries of the AI surge. Unlike its GPU-selling counterparts, Super Micro is a provider of application-optimized server and storage systems tailored for enterprise data centers engaged in high-demand tasks such as cloud computing and AI.
The company’s announcement of upcoming support for the new NVIDIA HGX H200 and advanced rack solutions optimized for AI, edge computing, and cloud service providers, underscores its commitment to catering to the burgeoning AI market. Despite challenges in meeting certain benchmarks, Super Micro Computer’s robust financials remain a testament to its potential. With net sales reaching $2.12 billion, showcasing a 14.5% year-over-year growth, alongside a positive outlook for FY’24, the company is instilling confidence among investors. In the year-to-date, the stock has surged over 52%, signaling promising prospects for the remainder of 2024.
Baidu Inc (BIDU)
Another significant player in the AI domain is Baidu Inc (NASDAQ: BIDU), renowned for its widely-used Chinese language internet search engine. The company operates through two segments: Baidu Core, offering search-based, feed-based, and online marketing services with AI initiatives, and iQIYI, contributing to online entertainment content production. Baidu’s noteworthy investment in AI is evidenced by its latest ERNIE 4.0, showcasing the company’s commitment to pioneering AI advancements.
Financially, Baidu has demonstrated a commendable 6% year-over-year revenue growth, with its Baidu Core segment yielding a 5% increase in total revenue and a 6% rise in non-online marketing revenue. Amidst this, its Apollo Go ride-hailing service has reported an impressive 73% increase in rides, totaling 4.1 million for the public. While the stock’s 1-year performance shows a decline of approximately 22%, its formidable financial metrics and unwavering dedication to AI innovation position Baidu as a compelling option for investors eager to ride the AI wave.