Stocks to buy

3 AI Stocks Poised for Explosive Growth in 2024

Businesses and consumers have used artificial intelligence (AI) before 2023, but ChatGPT’s launch thrust the technology into the spotlight. Many AI stocks led the stock market and outperformed major indices. Although AI stocks performed well in 2023, promising financials and tremendous runways suggest the rally can continue with plenty of AI stocks to buy for growth in 2024. Some of the biggest winners can continue to win, and smaller companies look poised to notch big gains. 

Investors looking to outperform the market with promising AI stocks may want to consider these top picks.

Nvidia (NVDA)

Source: Poetra.RH /

Nvidia (NASDAQ:NVDA) alerted many investors about artificial intelligence investment opportunities. The company has always been dominant and gained more attention during the crypto boom.

The company’s GPU chips are the most popular choice for artificial intelligence tools. These tools rely on chips to run smoothly; many companies turn to Nvidia.

Nvidia’s data center business performed better than the company’s other segments. The data center segment generated $14.51 billion in revenue, representing a 279% year-over-year increase. As a whole, Nvidia reported 206% year-over-year revenue growth and 588% year-over-year net income growth.

The high net income growth makes Nvidia’s valuation more reasonable than many tech stocks. The valuation is exceptionally reasonable if you compare Nvidia to other members of the Magnificent Seven. The stock currently has a forward P/E ratio of 24.

Nvidia stock has gained 237% year-to-date. While this gain is impressive, revenue and earnings growth have been outpacing it. Investors shouldn’t expect Nvidia to post these types of numbers indefinitely. However, a few more quarters of 100% or higher year-over-year revenue and earnings growth will make the valuation promising for investors who buy shares at current levels.

Axcelis Technologies (ACLS)

Source: Pavel Kapysh /

Due to its ion implantation technology, Axcelis Technologies (NASDAQ:ACLS) is a reliable partner for many chipmakers. Axcelis’ Purion platform helps companies produce more effective chips in less time while saving money. 

While other semiconductor stocks have reported lower revenue growth due to economic headwinds, Axcelis Technologies continues to march forward. The company reported $292.3 million in revenue, a 27.6% year-over-year increase. Net income came in at $65.9 million, representing 63.7% year-over-year growth.

While Nvidia has already become a trillion-dollar company, Axcelis Technologies is much smaller. Shares have a market cap below $5 billion and only trade at a 20 P/E ratio. 

Analysts see a compelling opportunity with the stock and have an average price target of $182.25 per share within one year. Axcelis Technologies would have to gain roughly 30% to reach that price point. Shares previously traded above that price level and have an all-time high of $201/share.

ACM Research (ACMR)

Source: Pavel Kapysh /

ACM Research (NASDAQ:ACMR) produces advanced wafer cleaning and wet processing equipment that cleans semiconductor devices. The California-based company has gained 86% year-to-date and is up 423% over the past five years.

A 16 P/E ratio and a market cap of barely over $1 billion look promising for a company that reported year-over-year revenue and earnings growth above 20% in the third quarter

While the company can compete with many artificial intelligence stocks, ACM Research’s main weakness is its over-reliance on China. In the third quarter and the past nine months, revenue from China accounted for more than 95% of the company’s total revenue. 

Any geopolitical tensions can make the company more vulnerable to a pullback than most semiconductor stocks. ACM Research recently announced a partnership with a large U.S. manufacturer, which can help them diversify their revenue streams. Expanding into the U.S. and reaching a greater range of customers can mitigate risk and lead to more stock gains.

On this date of publication, Marc Guberti held long positions in NVDA and ACLS. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Marc Guberti is a finance freelance writer at who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.