Stocks have been on an upward trajectory lately, notably with the Nasdaq Composite index showing an 8% increase since the onset of 2024. This positive trend comes as a continuation from the previous year when the tech sector’s vitality propelled the same index to surge by more than 43%.
The surge in the tech sector’s vigour is largely credited to the burgeoning Artificial Intelligence (AI) industry which has enticed investors, driven by heightened demand for AI services that has fueled the entire tech market. The AI industry’s growth momentum is anticipated to persist through 2024, benefiting numerous companies and associated markets.
They say, “The best time to plant a tree was 20 years ago, and the next best time is now.” The same rings true for investing.
Here, we uncover three stocks poised to bolster your financial standing in the year 2024.
1. Advanced Micro Devices
Renowned chipmaker Advanced Micro Devices (NASDAQ: AMD) is poised for an intriguing year ahead and a promising future. The company’s hardware is employed by various tech firms, empowering a wide array of devices from cloud platforms to gaming consoles, AI models, custom-built PCs, laptops, and more.
AMD’s remarkable performance in the industry is evident in its revenue surge of 240% over the past five years, with its free cash flow witnessing a remarkable uptick of 306%.
Despite the substantial investments in AI, AMD’s financial results have yet to fully reflect this. Nevertheless, the company’s recent quarterly outcomes indicate a positive trajectory. In the fourth quarter of 2023, AMD’s revenue climbed 10% year-over-year to $6 billion, surpassing analysts’ predictions by about $60 million. Notably, its AI-focused data center segment exhibited a robust revenue growth of 38%.
2. Intel
The surging demand for chips across the tech landscape implies that one can never have too many chip stocks in their investment portfolio, and Intel (NASDAQ: INTC) stands out as an enticing choice.
In recent years, Intel encountered several challenges leading to a 41% decline in its stock over the last three years, following decreased market share in central processing units and the conclusion of a partnership with Apple.
However, the stumble seems to have fueled Intel’s resurgence, with the company embarking on strategic initiatives to stage a strong comeback in the forthcoming years. Last June, Intel unveiled a significant shift in its business model, anticipating savings of $10 billion by 2025.
3. Amazon
Amazon’s (NASDAQ: AMZN) stock has witnessed an impressive 81% climb over the past year, enriching numerous investors along the way.
The company has seen remarkable business growth over the last decade, emerging as a frontrunner in e-commerce and cloud services, with its annual revenue and operating income soaring by 546% and 20,000%, respectively, since 2014.
The spotlight has recently been on Amazon’s foray into AI. As the operator of the world’s largest cloud service, Amazon Web Services (AWS) is well-positioned to leverage its extensive cloud data centers to steer the generative AI market. In response to escalating demand for AI services in 2023, AWS introduced a range of new tools, hinting at a substantial earnings surge in the years ahead.