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3 AI trading possibilities in 2024
Tech takes leadership in 2024 as Nvidia tops $2 trillion market cap and Arm see’s 100% stock surge in value
Goldman anticipates that the demand for accelerated computing will persist and expand throughout 2025.
Nvidia's market cap reaches $2 trillion, becoming the third most valuable company in the U.S. stock market.
Microsoft's $13 billion investment in OpenAI results in the successful development of Copilot, with 40% of Fortune 100 companies adopting the AI-powered tool.
Arm Holdings experiences a nearly 100% surge in value, driven by rising demand for its chip architecture in AI applications, particularly in the automotive industry.
Following a year of spectacular gains, considering the improving macroeconomic conditions, the continued integration of cloud computing, and the favourable momentum generated by advancements in artificial intelligence, the prospects for AI stocks in 2024 appear quite promising.
The bullish theme for the year ultimately led to higher gains Nvidia, Alphabet, Microsoft and Arm Holdings and according to Wall Street there’s still potential for further upside momentum.
Trading possibilities in 2024
Microsoft
More on generative AI, Microsoft enthusiastically embraced the technology, investing a substantial $13 billion in OpenAI, the creator of ChatGPT. A pivotal outcome of this collaboration was the swift development of Copilot, an AI-driven assistant intended to enhance the productivity of Microsoft's software users by simplifying tedious and time-consuming tasks.
Additionally, 40% of Fortune 100 companies opted to utilize Microsoft 365 Copilot during the early access program, indicating a robust demand for the innovative AI-powered tool.
Arm Holdings
Another glorious win for the year, is Arm Holdings. The company’s value surged by almost 100% after a blockbuster earnings report doubling in price. After a positive quarterly forecast fueled by the rising demand for its technology in crafting chips for AI functionalities.
Although Arm does not manufacture semiconductors, commonly known as "chips." Instead, the company sells its architecture to companies such as Nvidia, Apple, Alphabet, Qualcomm, Microsoft, and Samsung. Mirroring the escalating enthusiasm for investments linked to artificial intelligence.
Its popularity came about as the company’s cutting-edge technology gains broader adoption, particularly in expanding sectors such as the automotive industry. The low-power and high-performance characteristics of Arm chips have led to significant developments, with Apple opting to replace Intel chips in its Macs with Arm-based chips.
Nvidia
Other than soaring demand for its cloud computing processors, Nvidia established its reputation by being a trailblazer in the development of graphics processing units (GPUs), the essential components responsible for rendering realistic images in video games.
The versatile potential of the company's graphics cards, was then repurposed for various applications demanding substantial computational power. This foresight led to their utilization in diverse fields such as data centers, cloud computing, and artificial intelligence.
Nvidia’s AI market share reached a whopping 90%. The company is expected to continue to move in strongly in 2024, Goldman Sachs recently raised the price target for the chip maker, lifting its price objective to $800 from $600 estimated last year.
Nvidia has surpassed Alphabet to become the third most valuable company in the U.S. stock market. The dominant AI chipmaker achieved this position with a market capitalization of $2 trillion.
