Can investing in AI-related stocks be the key to your financial enrichment in July 2024? Discover the insights from Forbes Advisor to seize the opportunities available to you.
The best AI stocks to consider in July 2024
AI stocks are becoming increasingly popular among investors looking to maximize their returns through the technological revolution that artificial intelligence represents. Forbes Advisor has identified several leading companies in this rapidly expanding market. Discover below the most promising recommendations for July 2024.
Nvidia Corporation (NVDA)
Nvidia is widely known for its graphics cards, but the company is also a key player in the production of microprocessors for autonomous vehicles and AI applications. Under the leadership of its CEO, Ginseng Huang, Nvidia is positioned to bring AI to all industrial sectors.
Analysts forecast an impressive growth of 21.9% in its earnings per share (EPS) for the next year, despite a high price-to-earnings ratio of 75.9. Nvidia also stands out for its stock buyback program and remarkable performance over the past decade.
Meta Platforms, Inc. (META)
Meta, the parent company of Facebook, Instagram, and WhatsApp, uses AI in numerous ways, including integrating it into virtual reality and translators to enhance communication. Following a drop in its EPS in 2022, predictions indicate a recovery with a 15.4% increase in 2024.
Despite a P/E ratio of 33.7, Meta continues to offer solid returns and a stock buyback program with a yield of 2.2%.
Amazon.com, Inc. (AMZN)
In addition to its online sales platform, Amazon is a giant in cloud computing, playing a crucial role in the development, training, and deployment of AI projects. After losing half of its value in 2022, Amazon shows forecasts of 25.9% growth in its EPS in 2024, despite a current P/E ratio of 59.3.
Amazon is an excellent option for investors seeking long-term performance.
Arista Networks, Inc. (ANET)
Arista Networks specializes in products and software for data centers and cloud computing, offering networks that can grow with technological evolution. Despite a projected earnings growth of only 14.4% next year, Arista stands out for its strong financial health, rated “A” by Morningstar.
Palo Alto Networks, Inc. (PANW)
With the increasing need for cybersecurity, Palo Alto Networks is well-positioned. Although the company is still in the profitability phase, its high P/E ratio of 44 is offset by impressive stock performance and a projected EPS growth of 11.8% for the next year.
How to invest in AI stocks
Investing in AI stocks requires thorough research to fully understand the industry and the companies involved. Here are some steps to achieve this:
- Research the AI industry and the companies that are part of it.
- Analyze the growth forecasts and historical performance of AI stocks.
- Select the AI stocks that show the best long-term potential.
- Purchase stocks through your online broker.
It is always recommended to consult a financial advisor before making major investment decisions.
Are these AI stocks really worth it?
The AI sector promises a bright future, but it is essential to realize that every investment carries risks. Do your own research and take the time to evaluate whether the risks associated with AI stocks are suitable for your investment portfolio.
In conclusion, these recommendations from Forbes Advisor on the best AI stocks for July 2024 provide valuable insights for investors looking to capitalize on the potential growth of this revolutionary sector.
