Top 2 AI Stocks to Watch in April 2024

Top 2 AI Stocks to Watch in April 2024

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2023 was a record year for Artificial Intelligence (AI) stocks, and 2024 is currently following suit. 

Irrespective of your profession, background or interests, the subject of AI has likely entered conversation more than once since the launch of ChatGPT in November 2022. 

AI is here to stay, and many forecast it will continue to advance and disrupt major industries, creating new jobs and boosting economic growth. Unsurprisingly, the majority of companies invested in AI technology have observed their share prices soar to all-time highs. Given AI's projected future potential across global industries, investing in AI offers investors a unique opportunity for considerable growth.

While many AI growth stocks are attracting investors' attention, such as Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), Tesla (TSLA), and Google (GOOG), here are two other potential AI companies to consider adding to your watchlist in April. Both are listed on the Nasdaq Stock Exchange.

1. Nvidia Corporation (Ticker: NVDA)

Unless you read no news and speak to absolutely no one, you will have already heard of Nvidia. The company, founded in 1993, has been featured in numerous research posts and has made the headlines more times than you can count, for good reason. Since the beginning of 2023, Nvidia has notched up an astonishing gain of +550%. Many claim that as long as there is demand for AI technology, Nvidia will remain a key player in the industry. 

At its core, Nvidia is a US-based company that manufactures Graphics Processing Units (GPUs), which are essential for AI applications in gaming and professional applications. Needless to say, with a mammoth market cap of US$2.18 trillion and being the third most valuable company in the world, Nvidia is leading the market and supplies approximately 80% of all AI chips to meet the ever-growing demand for AI-powered development. 

Nvidia’s stock price rallied nearly +240% in 2023, following a -50% fall in 2022. Things are also looking bright in 2024, with the stock up +76% year to date after touching an all-time high of $974 on 25 March. Needless to say, the stock is entrenched in a dominant uptrend and dip buyers will be drawn to this market as a result. 

As per the latest earnings for Q4 ending 28 January 2024, revenue growth was up +22% (US$22.1 billion) from Q3 and up +265% year over year. The record full-year revenue (from January 2023 to January 2024) was US$60.92 billion, which is up +126%. Based on the fiscal year 2024, the company’s net income also grew a whopping +581% to US$29.76 billion, up from US$4,368 billion in 2023. 

According to forecasts, Nvidia is expected to grow earnings and EPS by approximately 23% per year, with return on equity (ROE) forecast to be more than 50% in three years.  Below is the daily chart of Nvidia. As already noted, the stock is in a clear uptrend, though it has been rangebound since testing all-time highs in early March. However, with the recent downside move, investors are likely watching support at $746 and $823.

2. Meta Platforms, inc. (Ticker: META)

Few people worldwide are unaware of Meta and its primary operations. Meta is a US-based multinational technology company (formerly called Facebook) that develops platforms for its users to connect and share content and experiences. The company was founded in 2004 and, as of this writing, has more than 65,000 employees.

Meta, with a market cap of US$1.3 trillion, added an eye-popping +194% in 2023 and is up nearly 50% year to date. As per the latest earnings report, in terms of revenue, the tech giant was a little over US$134 billion in the twelve months to December 2023, up from US$116,61 billion (marking a +16% change). Revenue for the quarter ending in December 2023 was US$40,111 billion, up from US$32,165 billion (+25% change). For net income, the company was up US$39,098 billion, marking a +68.5% increase from US$23,200 billion in 2022. For the quarter leading up to December 2023, net income jumped +201% to US$14,017 billion from US$4,652 billion in 2022.

CEO and Founder Mark Zuckerberg communicated the following in the latest Earning’s Press Release: ‘We had a good quarter as our community and business continue to grow. We've made a lot of progress on our vision for advancing AI and the metaverse’.

According to forecasts, Meta is expected to increase earnings by approximately +14% per year, with revenue also anticipated to grow by +11% per year. Regarding EPS growth, the forecast suggests a +15% increase per annum, together with a forecast of +24% return on equity (ROE) over the next three years. Below, you will find the daily chart of Meta. It is obvious to see that the company’s share price is in an uptrend, like the price of Nvidia. And with the stock recently hitting fresh all-time highs of $531.87 this week, there will be traders and investors looking to buy dips, potentially at support from $483.74. If we fail to hold here, trendline support may make a show, taken from the low of $279.40.

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