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Purchasing AI Stocks: Potential for Nasdaq Growth with Nvidia and Meta Platforms in 2024

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Investors are taking notice of possible possibilities in the artificial intelligence (AI) space, as seen by the Nasdaq-100 Technology Sector index’s strong 7% increase in the first two months of 2024. In the past, AI stocks have shown to be a major driver of Nasdaq’s rise. Two such examples are industry titans Nvidia (NASDAQ: NVDA) and Meta Platforms (NASDAQ: META), which have gained an impressive 233% and 181%, respectively. As the Nasdaq-100 index is about to rise even higher, astute investors are viewing two of the biggest names in AI—Nvidia and Meta Platforms—as profitable ventures.

  1. Nvidia’s Market Domination in AI Chips:
    The market attractiveness of Nvidia has increased due to its recent financial performance, especially its fourth-quarter results for the fiscal year 2024. Nvidia exceeded analyst projections and revealed record quarterly sales of $22.1 billion, a startling 265% increase over the same period previous year. This development trajectory has been largely attributed to the company’s proactive efforts to improve the supply of its flagship H100 AI graphics processing unit (GPU). Nvidia is working with Taiwan Semiconductor Manufacturing (TSMC) to increase the capacity of their sophisticated packaging, which is essential for the manufacturing of AI chips. According to TSMC’s projections, by the fourth quarter of 2024, its chip-on-wafer-on-substrate (CoWoS) production capacity will have doubled, in line with Nvidia’s strategic goals. Nvidia expects the demand-supply gap to remain persistent even with supply-side improvements, indicating the growing market demand for its GPUs.Nvidia’s competitive advantage is strengthened by the impending release of the H200 AI GPU, which boasts improved inference performance and makes use of cutting-edge 3-nanometer chipmaking technology. Given that Gartner estimates the AI chip industry to be around $67 billion, Nvidia is well-positioned for long-term development given its dominating position and projected 90% market share in 2023. Analysts predict that revenue will rise by 83% to $110 billion in the upcoming fiscal year, which is consistent with the company’s upward trend.
  2. Meta Platforms: Using AI to Drive Development:
    Another attractive investment opportunity is Meta Platforms, which is now priced at an attractive 24 times projected earnings. The bottom line is expected to expand by a significant 34% in 2024, according to analysts, with 26% annual earnings growth over the following five years. This growth estimate, which exceeds its prior five-year profits growth of 11%, represents Meta’s developing story. Meta has demonstrated its dedication to innovation by carefully incorporating generative AI into its advertising ecosystem. Using AI to improve ad targeting and personalize content, Meta wants to completely transform the effectiveness of advertising. Meta expects a large increase in advertiser engagement as generative AI improves ROI and streamlines ad creative procedures. Positively, Meta’s revenue growth trajectory is exceeding analysts’ estimates and surpassing the expected rise of the digital ad industry. The fact that Meta is expected to raise its revenue by 17.3% to $158.2 billion in 2024 highlights its competitive position. Meta’s AI-powered advertising expertise puts it in the best possible position for long-term revenue growth and industry leadership as the digital ad space expands.

Project Outlook for Investments:
With opportunities in the AI space booming, it makes sense to put money into Nvidia and Meta Platforms. Nvidia’s technological superiority and leading position in the market indicate sustained growth potential. In a similar vein, Meta’s strategy focus on AI-driven innovation highlights its path to long-term revenue growth. Investors observing the Nasdaq’s rising trend in 2024 should give both stocks serious consideration for their prospective returns and solid portfolio diversification, as both are positioned to profit on AI’s disruptive potential.

With Nvidia and Meta Platforms, there are attractive investment prospects as AI continues to infiltrate many industries. Sensible investors may profit from the development potential provided by these IT companies, as Nasdaq is set to rise due to AI stocks. Investors looking to learn more about AI’s revolutionary effects on the market will find Nvidia and Meta Platforms leading the way due to their respective supremacy in the AI chip industry and creative AI-driven advertising solutions.

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