3 Artificial Intelligence Stocks With More Potential Than Any Cryptocurrency | The Motley Fool (2024)

The AI market could top $1 trillion in a few years, and these companies are set to benefit.

The cryptocurrency market has proven its ability to drive growth for investors' portfolios. It soared to $3 trillion in market value back in 2021, and after a slump over the past couple of years, it's once again on the rise. As investors look ahead to the possibility of lower interest rates and a stronger economy, they're returning to growth investments like crypto.

But if you prefer to stick with the stock market, don't worry -- you won't miss out on major growth opportunities. In fact, certain stocks have even more potential than any crypto right now. You'll find many of them in another hot growth area: the field of artificial intelligence (AI). The AI market is forecast to surpass $1 trillion by the end of the decade, and today, investors are positioning their portfolios to benefit. Let's take a closer look at three AI stocks that could beat any crypto player.

1. Nvidia

Nvidia (NVDA 0.76%) shares already have soared in the triple digits over the past year, but this top AI stock still may have plenty of room to run. Here's why. Nvidia is the AI chip market leader, with 80% share, and it's likely to maintain this leadership thanks to its brand strength and constant innovation.

Companies know they can count on Nvidia, making it their go-to destination, so if Nvidia can keep ahead of rivals from a technology perspective it's likely to win. For example, Tesla chief executive officer Elon Musk recently said, "There is currently nothing better than Nvidia hardware for AI." This comment was in conjunction with Nvidia's announcement of its Blackwell architecture, featuring a number of innovations including the most powerful AI chip yet.

This upcoming launch, along with Nvidia's increasing spending on research and development, are reasons to be confident about the company's earnings potential. And speaking of earnings, Nvidia's dominance so far helped it report triple-digit gains in revenue and net income last year.

All of this means the stock looks like a great buy at 34 times forward earnings estimates and has plenty of fuel to advance over time.

2. Alphabet

You probably know Alphabet (GOOG 0.37%) (GOOGL 0.35%) best thanks to its biggest revenue driver: Google Search. Advertisers pay to promote their products or services across the search platform, knowing they can easily reach their audience there. After all, Google Search consistently holds more than 90% of the global search market.

Thanks to AI, Google Search is likely to get better and better -- and AI tools are making the advertising experience easier for advertisers too. Alphabet recently launched its most powerful AI model yet, Gemini 1.5, and is applying the technology across its business. In search, generative AI is offering users faster results and access to more information on a specific topic. This should keep users coming back, and as a result, advertisers are likely to keep spending on Google Search ads.

Alphabet also could become an AI winner through its cloud business. Google Cloud offers clients access to AI chips and other products and services to power their AI projects. Just last year, it announced thousands of product advancements thanks to AI, and all of this helped Google Cloud win or expand deals with major companies including McDonald's and Verizon.

Right now, Alphabet stock trades for 23 times forward earnings estimates, a terrific entry point for this solid long-term player.

3. Meta Platforms

Meta Platforms (META 1.54%) is another company that generates most of its revenue through advertising. Advertisers flock to Meta's social media platforms -- Facebook, Messenger, WhatsApp, and Instagram -- because they know that's where they can reach us. More than 3.1 billion people use at least one of Meta's social media apps every day.

This has offered Meta a growing stream of revenue, which has led to profit too. Now, Meta is going all in on AI, with the plan of using this technology across all of its products and services well into the future. Meta's made AI its investment focus, with the goal of having 600,000 graphics processing units on board by the end of the year.

Meta already has developed its own large language model (LLM), Llama, and is now training Llama 3. This serves as the foundation for products such as new conversational assistant Meta AI -- and thanks to Meta's open-source policy, its software could even become an industry standard.

This tech giant has huge AI ambitions, and if it even reaches only some of its goals, it could be a major AI winner -- that's why it looks like a top bargain now at 24 times forward earnings estimates.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adria Cimino has positions in Tesla. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, Nvidia, and Tesla. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

3 Artificial Intelligence Stocks With More Potential Than Any Cryptocurrency | The Motley Fool (2024)


3 Artificial Intelligence Stocks With More Potential Than Any Cryptocurrency | The Motley Fool? ›

Below are three AI stocks—Nvidia, Alphabet (the parent company of Google), and Meta Platforms—all of which are better poised to deliver substantial returns than the most exuberant cryptocurrency.

What are the three artificial intelligence stocks with more potential than any cryptocurrency? ›

Below are three AI stocks—Nvidia, Alphabet (the parent company of Google), and Meta Platforms—all of which are better poised to deliver substantial returns than the most exuberant cryptocurrency.

What are Motley Fool's 5 top AI stocks you can buy right now? ›

The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Nvidia, and UiPath. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short May 2024 $47 calls on Intel.

What AI stock has the most potential? ›

These are your top three bets to jump into the action. Meta Platforms (META): Investments in AI research have paved the way to further innovation. ARM Holdings (ARM): Its dominance in the mobile CPU architecture market makes it a strong growth prospect. Nvidia (NVDA): NVDA is the top dog in the AI boom.

Which cryptocurrency is based on artificial intelligence? ›

Snapshot of The Trending AI Crypto Coins
Coin NameCurrent PriceMarket Capitalization
Near Protocol$7.29$7.7 Billion
Internet Computer$13.47$6.2 Billion
Render$8.48$3.2 Billion
Bittensor$447$2.96 Billion
1 more row
6 days ago

What are the top 3 AI stocks to buy now? ›

7 best-performing AI stocks
TickerCompanyPerformance (Year)
NVDANVIDIA Corp200.92%
SOUNSoundHound AI Inc71.43%
UPSTUpstart Holdings Inc53.78%
AVAVAeroVironment Inc.53.22%
3 more rows
Apr 24, 2024

What top companies are investing in AI? ›

Nvidia A Bellwether For AI Stocks

Meanwhile, cloud computing giants Amazon.com (AMZN), Microsoft and Google sell AI services to business customers. Further, Microsoft is the biggest investor in startup OpenAI, the leader in generative AI training models.

What AI stock is Amazon buying? ›

The company just made the final payment of its agreed $4 billion investment into leading AI start-up Anthropic, a deal that will accelerate Amazon's progress on both the hardware and software sides.

What stocks are in Motley Fool's ownership portfolio? ›

Motley Fool Asset Management
  • Top 5 stock holdings are AAPL, MSFT, AMZN, GOOG, WSO, and represent 24.83% of Motley Fool Asset Management's stock portfolio.
  • Added to shares of these 10 stocks: WMT (+$13M), SWAV (+$10M), RTO (+$8.7M), CNI (+$8.1M), WAT (+$7.7M), AMT (+$7.6M), TREX (+$5.4M), MSFT, AAPL, UPS.

What is the smartest stock to buy? ›

Compare the best stocks to buy now
Company (Ticker)SectorMarket Cap
Alphabet (GOOGL)Communication services$2.15T
Broadcom (AVGO)Technology$622.87B
Meta Platforms (META)Communication services$1.12T
ServiceNow (NOW)Technology$148.60B
1 more row

What is the most expensive AI stock? ›

Three of the most expensive AI stocks to own right now are Nvidia (NASDAQ: NVDA), SoundHound AI (NASDAQ: SOUN), and MicroStrategy Incorporated (NASDAQ: MSTR). Are these shares worth their inflated valuations, or is it time to step away from these high-priced stocks?

Which is the best AI model for stock prediction? ›

AI-based high-frequency trading (HFT) emerges as the undisputed champion for accurately predicting stock prices. The AI algorithms execute trades within milliseconds, allowing investors and financial institutions to capitalize on minuscule price discrepancies.

How should I invest in AI? ›

Generally, it's important to invest in the companies delivering the hardware, such as AI chips, and crafting platforms that run on AI. They're the ones that stand to directly benefit from the boom now and going forward. Simply using AI doesn't make a company an AI company.

Which crypto will boom in 2024? ›

Top 10 Cryptos in 2024
CoinMarket CapitalizationCurrent Price
Tron (TRX)$10.1 Billion$0.1152
Polkadot (DOT)$10.2 Billion$7.12
Cosmos (ATOM)$3.4 Billion$8.64
Maker (MKR)$2.9 Billion$3,160
6 more rows
Apr 15, 2024

How much is the AI coin worth? ›

AI Price Live Data

The live AI price today is $0.000619 USD with a 24-hour trading volume of $2,398.99 USD.

Which is better, blockchain or artificial intelligence? ›

AI algorithms can be used to process and analyze data, automate processes, and create smart contracts, while blockchain technology provides a secure and transparent way to store and manage data, execute automated processes, and record smart contracts.

What is the best AI cryptocurrency? ›

Top Artificial Intelligence (AI) Coins Today By Market Cap
#NameMarket Cap
1Render ( RNDR )$3.07B
2Bittensor ( TAO )$2.79B
3The Graph ( GRT )$2.41B
4Fetch.ai ( FET )$2.27B
39 more rows

Which market is more volatile than crypto? ›

Stocks are often volatile, but they tend to be less volatile than crypto. Individual stocks are more volatile than a portfolio of stocks, which tends to benefit from diversification. Stocks are better suited to investors who can leave their money alone and don't need to access it.

Top Articles
Latest Posts
Article information

Author: Maia Crooks Jr

Last Updated:

Views: 6182

Rating: 4.2 / 5 (43 voted)

Reviews: 82% of readers found this page helpful

Author information

Name: Maia Crooks Jr

Birthday: 1997-09-21

Address: 93119 Joseph Street, Peggyfurt, NC 11582

Phone: +2983088926881

Job: Principal Design Liaison

Hobby: Web surfing, Skiing, role-playing games, Sketching, Polo, Sewing, Genealogy

Introduction: My name is Maia Crooks Jr, I am a homely, joyous, shiny, successful, hilarious, thoughtful, joyous person who loves writing and wants to share my knowledge and understanding with you.