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The 10 Best AI Tech Stocks in 2024

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The 10 Best AI Tech Stocks in 2024

Did you know that the size of the global artificial intelligence (AI) market was estimated to be worth $428 billion and is expected to increase to $2 trillion by 2030? This represents a 21.6% compound annual growth rate (CAGR)! With statistics like this, you would want a piece of the best AI tech stocks to include in your investment portfolio.

The best AI tech stocks did exceptionally well, especially since AI is taking the world by storm. Let’s talk about the 10 best AI stocks, so read on to learn more!

1. Amazon (NASDAQ: AMZN)

Amazon is an AI-powered company experiencing significant growth in recent years. The company’s Alexa virtual assistant and cloud-based AI services transform how people interact with technology.

Amazon’s cloud computing division, Amazon Web Services (AWS), has experienced growth throughout the years. AWS offers several AI services, such as its Rekognition image analysis service. AWS generated $80 billion in revenue, compared to $62 billion in annual revenue in 2021.

With a market share of 37.8% in the U.S. e-commerce market, strong growth potential, and a solid financial standing, Amazon is a safe bet for investors.

AWS Amazon Web Services
Amazon Web Services (AWS) has a high CAGR and a very impressive market share of the e-Commerce market.

2. Alphabet (NASDAQ: GOOG:GOOGL)

One of the most well-known parent companies in the AI industry is Alphabet, Inc., Google’s parent company. Google Search was first introduced to the world in 1997 and has since dominated the search engine market, with a market share of 84.08% at the end of 2022. Alphabet’s main revenue source is from search ads, generating over $224 billion in 2022 across all its platforms.

Google is a major player in the AI software market, and Alphabet has invested in developing the Google Cloud platform to provide AI solutions to businesses. The parent company’s financial strength and expertise have helped Google expand its AI offerings and market share.

AI applications like natural language processing (NLP) and machine learning integrate into various Google products, including Google Cloud and Google Assistant. Google also uses its AI technologies for image and voice recognition, chatbots, and predictive analytics.

largest Internet companies
Alphabet, Google’s parent company, is a real giant in the search engine market.

3. NVIDIA (NASDAQ: NVDA)

Being the world’s leading graphics processing units (GPU) manufacturer, NVIDIA is well-positioned to profit from the growing demand for AI. The company has invested heavily in software and hardware, creating some of the world’s most advanced AI chips.

For example, NVIDIA develops technology that powers AI applications such as self-driving vehicles and data centers. Its primary focus is on creating high-performance chips for AI workloads.

This semiconductor company has been experiencing impressive revenue growth in recent years, with an annual growth rate of 29.9% over the past five years. NVIDIA is one of the best tech stocks to add to your portfolio due to its 17% PC GPU market share and its focus on innovative solutions.

Largest GPU Companies
NVIDIA is a leading manufacturer of GPUs for gaming and professional markets.

4. Microsoft Corporation (NASDAQ: MSFT)

Microsoft is one of the tech giants that is making a mark when it comes to AI. Two major developments have helped to set the company apart from the competition.

  • Microsoft’s exclusive license to GPT-3: OpenAI developed this incredible language model and is now exclusively licensed to Microsoft. This gives them a major advantage in developing language and conversational AI solutions.
  • Microsoft Azure: Microsoft Azure is a key AI infrastructure platform making waves in the business world. Azure is one of only a handful of systems that make it possible for thousands of businesses to use AI easily and cost-effectively. This is a game-changer for companies needing more resources to develop their own AI solutions from scratch.

Microsoft is also the parent company of several AI tech firms, including Microsoft Research, which focuses on developing advanced AI technologies, and LinkedIn, which has integrated AI algorithms in its recruitment and career development services. Microsoft’s investment in these companies has allowed them to grow their AI capabilities and expand their customer base.

In addition, the company has a good history of growth, with a revenue growth rate of 15.24% year-over-year (YoY) over the past five years, making it an excellent choice for individual investors.

microsoft surface
Microsoft is one of the biggest names in tech and for good reason.

5. Salesforce (NYSE: CRM)

Salesforce is a trailblazer in the world of artificial intelligence, specifically when it comes to customer relationship management (CRM). The company has embedded its innovative AI technology, powered by the Einstein AI engine, throughout the Salesforce platform.

Salesforce expanded its AI offering in 2016 with the introduction of Salesforce Einstein, and it has not looked back. The goal was to make AI accessible to everyone, and it’s clear that the company is committed to making that a reality. Salesforce widely uses its AI technology for CRM tasks, improving business processes in terms of efficiency and simplicity.

But it’s not just about innovation. Salesforce also dedicates itself to ensuring that its AI technology meets ethical standards. This is why they debuted the AI Ethics model in 2021, setting a standard for other companies in the industry to follow.

Their last reported annual revenue proves that their investment in AI technology and ethical considerations is paying off. Salesforce is a major player in the AI tech space and one to watch in the future.

Salesforce has also come a long way over the last two decades, emerging as one of the biggest and most valuable tech brands globally. In 2020, the company notched up an impressive 19.5% share of the global CRM applications market, surging past other major players like SAP and Oracle. In 2021, the company’s market share increased to 23.8%. This made Salesforce an even more important player in the tech world than ever before.

Largest CRM companies
Salesforce uses AI technology in its customer relationship management (CRM) software.

6. IBM Corporation (NYSE: IBM)

IBM, revered for its natural language processing (NLP) and machine learning expertise, is an AI powerhouse. Various industries, including healthcare and finance, trust and use IBM’s Watson AI technology. But IBM’s focus isn’t just on building the ultimate AI machine; it’s on providing businesses with cutting-edge AI solutions that empower them to innovate and thrive.

At the heart of IBM’s AI offering is the Watson AI platform, which delivers a range of AI capabilities, from predictive analytics to chatbots and image recognition. IBM’s investment in several AI startups, like Cognos and AlchemyAPI, has only strengthened its AI offerings. IBM has integrated these companies into the Watson platform to provide businesses with even more advanced AI solutions.

IBM had a standout year in 2022, with its stock outpacing the broader tech sector thanks to a strong surge in revenue. This resulted from the company’s focus on cloud computing and software development, which proved attractive to investors looking for reliable growth opportunities.

Despite the ongoing semiconductor chip shortage, IBM’s commitment to enterprise technology and hybrid cloud offerings kept the revenue flowing in. Their shift in focus to software and cloud computing is paying off, as 2022 Q4 revenue totaled an impressive $16.7 billion, marking a 6% increase. Meanwhile, tech giants like Apple and Microsoft saw their gains taper off towards the end of the year.

cloud computing
IBM has branched out tremendously, and its use of AI offers a wide array of applications.

7. Meta Platforms, Inc. (NASDAQ: META)

Meta Platforms is a technology company focused on immersive technologies and social media. The company has been working on several exciting AI projects, from developing natural interactions in virtual reality environments to building AI detectors to identify harmful content.

With a wealth of experience in AI under its belt, Meta has paired people, products, and content successfully through the years. The company recently unveiled an AI supercomputer that can work across multiple languages, create augmented reality tools, and forge the path to the much-anticipated metaverse.

Meta’s global user base has been on a steady rise, with a whopping 3.74 billion users across all of Meta’s platforms as of Q4 2022. Meanwhile, across Europe, the company recorded an impressive 411 million monthly active users during the same period.

Oculus, Meta’s virtual reality app, saw an increase in downloads between 2020 and 2021, with 10.43 million downloads in 2023, which more than doubled compared to previous years. And to top it off, Meta reported revenue of $116 billion!

meta quest pro update
Meta is getting bigger and better by the year.

8. Intel (NASDAQ: INTC)

One choice for investors looking to dip their toes into technology waters is Intel, a well-known semiconductor giant pumping out innovative tech for years.

What makes Intel appealing is its stability and diversity. Investors can feel confident in the company’s reputation and focus on creating top-quality products. In addition, the company has a large reserve of $27.53 billion in cash on hand. This means it can invest in research and development, lucrative acquisitions, and attracting new talent.

But that’s not all — Intel is already a key player in AI. Its hardware components are essential to the deep learning models run on Microsoft’s cloud platform, and its vision processing units power sophisticated surveillance cameras that analyze behavior, detect faces, and count crowds.

And let’s not forget about Intel’s Mobileye division, which is dedicated to developing life-saving vehicle technology. This segment grew by an impressive 35%! With stability, innovation, and cutting-edge AI technology, it’s no wonder that Intel is one of the best AI tech stocks!

Apple M1 vs Intel i5-13600KF
Intel is a comparatively reliable choice in an otherwise unstable market.

9. Tesla (NASDAQ: TSLA)

If you’re interested in tech, the name Tesla is probably already on your radar. And it’s no wonder that the company’s stock has skyrocketed to astronomical heights. Some analysts even predict its stock price will soar over 1,000% in the next five years! But did you know that Tesla’s advancements in AI technology make it an exciting long-term investment?

Take, for example, Tesla’s self-driving cars, which rely on cutting-edge deep learning AI to work effectively. What’s impressive is that they’re not just theoretical. These cars are driving around in the real world, racking up billions of miles. This gives Tesla a couple of major advantages: some of the most advanced AI technology, plus access to incredibly vast datasets for that AI to learn from and continually improve upon.

Tesla’s self-driving cars can perceive and interpret the environment around them using various sensors, including cameras, radars, and GPS. They use high-resolution maps and real-time data to identify objects, pedestrians, and other vehicles, anticipate traffic patterns, and make safe and quick decisions. These capabilities give them an edge over human drivers, enhancing safety and reducing the risk of accidents.

Given these advantages, it’s no surprise that many experts are bullish on Tesla’s potential in the AI space. With self-driving cars just one piece of the puzzle, the potential applications are practically limitless.

How Much Is a Tesla Today
We bet you’re not surprised to see Tesla make the cut here.

10. C3.ai (NYSE: AI)

C3.ai is making waves in the AI industry by developing cutting-edge algorithms that help large organizations streamline operations. This young company boasts an impressive revenue growth of 38% in the 2023 fiscal year compared to the 2021 fiscal year.

As a Software as a Service (SaaS) company, C3.ai specializes in AI and machine learning applications. Their software helps companies implement large-scale AI solutions cost-effectively and efficiently, which can help speed up software development and lower associated risk. In other words, C3.ai’s tools allow companies to leverage the power of AI in various ways across multiple industries.

C3.ai recently expanded its range of AI-powered services to finance, healthcare, agriculture, life sciences, manufacturing, and more, cementing its reputation as a leader in the space. The company’s tools are renowned for optimizing operations across the board, from supply chain management to energy efficiency and customer engagement.

In addition, C3.ai has an excellent track record, as evidenced by recent contracts, including a $500 million five-year deal with the U.S. Department of Defense.

From predicting and mitigating aircraft system failures for U.S. Air Force using C3 AI Readiness to optimizing supply chains and logistics for Fortune 500 companies, C3.ai is proving a versatile player in the AI marketplace.

c3.ai tech company artificial intelligence AI
C3.ai is making big waves in the artificial intelligence space.

Final Thoughts

As AI technology advances and more companies jump on the bandwagon, it’s clear that investing in tech stocks related to AI is a smart move. With these best AI tech stocks leading the charge, investors can be sure they’re making a sound decision by investing in these companies. 

Summary Table

RankCompanyTicker
#1AmazonNASDAQ: AMZN
#2AlphabetNASDAQ: GOOG:GOOGL
#3NVIDIANASDAQ: NVDA
#4Microsoft CorporationNASDAQ: MSFT
#5SalesforceNYSE: CRM
#6IBM CorporationNYSE: IBM
#7Meta Platforms, Inc.NASDAQ: META
#8IntelNASDAQ: INTC
#9TeslaNASDAQ: TSLA
#10C3.aiNYSE: AI

Frequently Asked Questions

Who dominated EV sales in the US in 2022?

With a market share of more than 50% in 2022, Tesla sold more EVs than the other 17 automakers combined in the U.S.

What does IBM stand for?

International Business Machines Corporation (IBM) is one of the largest tech companies worldwide, operating in multiple countries across the globe.

Why is Facebook called Meta?

Facebook has changed its name to Meta Platforms on October 28, 2021. Meta is based on the sci-fi phrase “metaverse” to reflect better its goal of enabling work and play in a virtual environment.

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