In this article, we'll look at 11 fast-growing AI stocks to invest in right now. To skip the detailed analysis of the Artificial Intelligence field, go directly to 5 fast-growing AI stocks to invest in now.
Technology: High growth area
If you're looking for high-growth stocks to invest in, the technology sector is a great place to start. Artificial intelligence (AI) stocks, in particular, can be an exceptional addition to any growth portfolio as this innovative technology continues to expand and grow to unprecedented heights. But the fact that AI is an attractive place to invest right now doesn't automatically mean that every AI stock on the market is a growth candidate for investors. As a result, it's important for investors to be able to carefully select AI stocks that can actually deliver on the promise of growth.
On March 15, Eric Lynch, portfolio manager at Scharf Investments, appeared on CNBC's “Squawk Box” to talk about this dilemma in the AI space where investors don't know which businesses can actually grow revenue. We talked. Here's what he had to say:
“We're in a sort of 'where's the beef?' situation. If you look at investor reaction to some AI stories over the past week, you'll see that Broadcom, Marvell Technologies, Oracle, and most recently… “I see that they partnered with Adobe yesterday. I think this is a reaction to slower-than-expected growth.”
2024 Artificial Intelligence Winners
According to Lynch, many AI companies today are behind on their promises and underperforming. As a result, it is becoming increasingly important to distinguish between winners and losers in this field. On which companies he thinks are winners in his AI space, Lynch said:
“Obviously, chipmakers and hyperscalers are seeing in the stock prices of NVIDIA, Microsoft, AWS, and most recently Oracle. % are truly leading in the direction they are leading.'' These names have really benefited from AI, as it was necessary for a good tech stack. ”
These “winner” AI stocks like NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL) are among the top high-growth stocks in the technology and AI sectors today. There is also one. For example, NVIDIA Corporation (NASDAQ: NVDA) will hold its GTC conference this March, where CEO Jensen Huang will give a keynote speech about what he expects from the company this year. Stifel Equity Research Analyst Ruben Roy joined CNBC's “Closing Bell” on March 15 to discuss what to expect from the keynote. He said:
“I think there's going to be a lot of discussion about product roadmaps. NVIDIA is picking up the pace of bringing new products to market. I think that's very interesting. I think there's going to be a discussion about the ecosystem around AI products, so it's not just a hardware issue, we don't think of NVIDIA as just a chip company anymore. It's a systems company, a software company, and a network company. So I think there's going to be a lot of discussion, again, centered around this concept of the AI ecosystem that NVIDIA is working hard to build. ”
Therefore, investors interested in artificial intelligence stocks should keep an eye on the upcoming GTC conference. The conference is expected to bring together technology experts to stimulate discussion about the future of AI and its impact on the world. Additionally, it's important to stay on top of the news about which AI stocks are considered high-growth stocks at the moment. That's why we've compiled a list of AI stocks that are currently growing the fastest, including some of the most promising AI stocks to buy and some of the most advanced AI companies to invest in.
Photo by Maximalfocus on Unsplash
our methodology
We used the holdings of the Global Selected high growth stocks. Stocks are ranked based on the following criteria: Shows stock price performance from lowest to highest. We also noted the number of hedge funds that own shares of each stock using Insider Monkey's fourth quarter hedge fund data. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That's why we pay close attention to this often ignored metric.
Fast-growing AI stocks to invest in now
11. Microsoft Corporation (NASDAQ:MSFT)
Number of hedge fund holders: 302
5-year stock price performance: 255.8%
Microsoft Corporation (NASDAQ:MSFT) is a systems software company based in Redmond, Washington. The company is one of the leading tech stocks leading the AI race with its AI solutions and chatbot 'Microsoft Copilot'.
As of March 15th, analysts at DA Davidson maintained a Buy rating on Microsoft Corporation (NASDAQ:MSFT) and a $500 price target.
302 hedge funds were long Microsoft Corporation (NASDAQ:MSFT) during the fourth quarter, with total value of the stock valued at $87.3 billion.
Bill & Melinda Gates Foundation Trust was the largest shareholder in Microsoft Corporation (NASDAQ:MSFT) at the end of the fourth quarter, holding 38.2 million shares of the company's stock.
Carillon Tower Advisors mentioned Microsoft Corporation (NASDAQ:MSFT) in its Q4 2023 investor letter.
“Microsoft (NASDAQ:MSFT) delivered a strong performance, reporting strong revenue driven by accelerated growth from Azure. While cloud businesses are seeing consistent optimization trends, AI is contributing significantly to their growth. ”
10. Apple Inc. (NASDAQ:AAPL)
Number of hedge fund holders: 131
5-year stock price performance: 261.4%
Berkshire Hathaway was the largest shareholder in Apple Inc. (NASDAQ:AAPL) at the end of the fourth quarter, holding 905.6 million shares of the company's stock.
Apple Inc. (NASDAQ:AAPL) is another big tech company on our list of high-growth stocks. The company is based in Cupertino, California and uses his AI and machine learning for technology research. The company recently acquired Canadian AI startup DarwinAI to add to its arsenal.
Analysts at Bank of America Securities gave Apple Inc. (NASDAQ:AAPL) a Buy rating on March 12th, maintaining the price target of $225.
Apple Inc. (NASDAQ:AAPL) was in 131 hedge funds' portfolios during the 4th quarter, with a total value of $205.9 billion.
9. The Trade Desk, Inc. (NASDAQ:TTD)
Number of hedge fund holders: 41 people
5-year stock price performance: 278.1%
41 hedge funds were long The Trade Desk (NASDAQ:TTD) in the 4th quarter, with total value of the stock reaching $1.3 billion.
The Trade Desk, Inc. (NASDAQ:TTD) is a digital advertising company based in Ventura, California. Real-time analytics powered by AI and machine learning enables prediction and optimization of advertising campaigns.
On February 22nd, Needham analysts gave The Trade Desk (NASDAQ:TTD) a Buy rating and maintained their price target at $100.
ClearBridge Investments mentioned The Trade Desk, Inc. (NASDAQ:TTD) in its Q4 2023 investor letter.
“We are focused on four long-term growth themes: data and analytics, onshoring/reshoring, information security, and e-commerce, and sourcing many ideas from companies early in the business lifecycle. In addition to Microsoft, three of the four other new positions we started during the quarter fall into the following focus areas: The Trade Desk Co., Ltd. (NASDAQ:TTD), Monolithic Power Systems and Model N.
Trade Desk, a communications services division, operates a cloud-based platform that enables buyers to manage digital advertising campaigns and is a disruptor in the advertising technology market. The company added to the stock in reaction to recession concerns and cautious ad buyers. ”
Along with NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), The Trade Desk, Inc. (NASDAQ:TTD) is one of the top high-growth stocks in the AI sector today. One. .
8. Fortinet, Inc. (NASDAQ:FTNT)
Number of hedge fund holders: 42 people
5-year stock price performance: 291.6%
Fundsmith LLP was the largest shareholder in Fortinet, Inc. (NASDAQ:FTNT) at the end of the fourth quarter with 7.3 million shares of the company's stock.
As of February 8, Goldman Sachs analysts have rated Fortinet (NASDAQ:FTNT) a Buy and maintained a price target of $85.
Fortinet, Inc. (NASDAQ:FTNT) is a systems software company on our list of high growth stocks. A generative AI assistant, he provides cybersecurity operational solutions including FortiAI.
A total of 42 hedge funds were long shares of Fortinet (NASDAQ:FTNT) during the fourth quarter, with a total value of $2.3 billion.
Conestoga Capital Advisors said the following about Fortinet (NASDAQ:FTNT) in its Q4 2023 investor letter:
“Fortinet Corporation (NASDAQ:FTNT): FTNT is the global market share (in units) leader for network security firewalls. During the quarter, shares sold off as reported claims growth fell short of expectations for the second consecutive quarter, resulting in a further downgrade to the 2023/2024 outlook. Currently, FTNT continues to face weak demand after his third consecutive year of strong growth. This is likely due to a short-term economic downturn, and management is seizing the opportunity to buy back its own shares at an accelerated pace. ”
7. Broadcom Corporation (NASDAQ:AVGO)
Number of hedge fund holders: 91 people
5-year stock price performance: 322.2%
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company based in Palo Alto, California. The company provides AI optical solutions and AI chips that improve high-speed interconnections between AI processors in data centers, and is one of the top high-growth stocks in the AI space.
On March 11, Citigroup analysts maintained a Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a price target of $1,100.
Broadcom Inc. (NASDAQ:AVGO) was found among 91 hedge funds' 13F holdings during the fourth quarter, with a total stock value of $8.9 billion.
Carillon Tower Advisers commented on Broadcom Inc. (NASDAQ:AVGO) in its Q4 2023 investor letter:
“Broadcom Co., Ltd.” (NASDAQ:AVGO) traded higher after completing its acquisition of VMware. The company also reported earnings that were relatively in line with expectations, benefiting from improved operating expenses. This stock appears to be one of the first true beneficiaries of generative artificial intelligence (AI) and is expected to deliver strong returns in 2024. ”
6. Cadence Design Systems, Inc. (NASDAQ:CDNS)
Number of hedge fund holders: 72 people
5-year stock price performance: 383.2%
Cadence Design Systems, Inc. (NASDAQ:CDNS) is an application software company. He offers his Cadence Generative AI Platform, a product design solution that enables user optimization, product differentiation, and workflow productivity.
A total of 72 hedge funds were long Cadence Design Systems (NASDAQ:CDNS) during the fourth quarter, with a total value of $3.6 billion.
Needham analysts reiterated their Buy rating and $320 price target on Cadence Design Systems, Inc. (NASDAQ:CDNS) on March 6th.
Along with NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), Cadence Design Systems, Inc. (NASDAQ:CDNS) is one of the high-growth stocks to buy now. .
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Disclosure: none. 11 fast-growing AI stocks to invest in now Originally published on Insider Monkey.
