We recently published a list of 10 AI Stocks That Will Skyrocket. In this article, we’ll take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands in relation to other AI stocks that are set to skyrocket.
Some investors are closely scrutinizing Big Tech’s spending on AI. Despite this significant spending, Big Tech has enjoyed solid revenue and profit growth. Yung-Yu Ma, Chief Investment Officer at BMO Wealth Management, recently joined Yahoo Finance to shed light on the overall outlook for the AI sector through 2024.
Ma believes that companies are increasing their investments in AI in anticipation of higher returns. He said it makes sense that the market is less enthusiastic about this situation. Ma argued that while AI spending is likely to increase, it is certain that the results will be seen soon, perhaps by the end of 2025.
He added that the market will likely see healthy earnings growth in 2025. Spending will largely drive these earnings, especially AI and its various use cases such as data centers, power grids and other infrastructure. He expects overall valuation growth and said Big Tech is extremely confident and committed to investing in the sector.
2024 has been an eventful year for artificial intelligence. Existing startups like Anthropic and Databricks have performed exceptionally well and transformed the industry.
Anthropic is an AI security and research company behind OpenAI rival Claude. On November 24, Anthropic expanded its partnership with AWS, involving an additional investment of $4 billion, bringing the total to $8 billion. The partnership also positions AWS as Anthropic’s primary cloud and training partner. Continuing this partnership, on December 4, Anthropic began optimizing Claude models to run on AWS Trainium 2.
Databricks, the data and AI company, is another AI startup crucial to the AI revolution. Some of Databricks’ products include data management solutions, data warehousing, real-time analytics, data sharing and data governance. The company is growing to new heights. On November 6, the company partnered with KT Corporation to drive data and AI innovation in Korea. Following the trend, on November 20, Databricks announced 70% annualized growth in its French business and opened a new office in central Paris.
Our methodology
To suggest AI stocks that will skyrocket, we looked at media reports to select stocks that are expected to perform exceptionally well according to analysts and strategists. After viewing 10 similar rankings across the internet, we looked at each stock’s upside potential and selected those with the highest upside potential, as of December 3, 2024. Our list is ranked in ascending order of the street’s upside potential as of December 3, 2024. 2024. We also mentioned hedge fund sentiment for each stock.
