Wall Street Picked These 13 AI Stocks for 2024
In this article, we will examine Wall Street picked these 13 AI stocks for 2024. To see a summary of these stocks, read our article Wall Street Picked These 5 AI Stocks for 2024.
Artificial Intelligence continues to rule the markets and remains the primary factor driving tech stocks to new heights. After causing the stock market to rise in 2023, artificial intelligence remains at the forefront of the media, investors, and even the government. This comes as companies continue assuring investors and the markets at large that they are well-positioned to capture the growth around the revolutionary technology.
Likewise, Wall Street continues to pick AI stocks, given the vast potential for applications of technology in healthcare, finance, and entertainment, among other facets of the economy. Institutional investors and venture capitalists are increasingly investing in emerging AI startups as they look to take advantage of the new frenzy that promises significant returns on investments.
While venture investment slowed down in 2023 amid the high-interest rate environment and concerns about recession, that was not the case for the AI sector. Generative AI and AI-related startups attracted close to $50 billion in investments, affirming the growing interest in the technology and its applications.
OpenAI, Anthropic, and Inflection were some startups that attracted the most significant share of venture capital investments. For instance, Microsoft invested close to $13 billion in OpenAI as it sought to gain a front seat in the startup’s AI innovations.
Anthropic is one of the startups that raised close to $2 billion from investors led by Google as it sought a valuation of close to $30 billion. More than 70 rounds of $100 million funding went into startups creating AI-powered models, providing infrastructure, and applying the technology to various applications.
Source: unsplash
Our Methodology
Artificial Intelligence is a powerful and lasting investment trend for the future. In this article, we will present 13 AI stocks that Wall Street analyst firms like Wedbush, Goldman Sachs, and Jefferies are excited about. These stocks are praised by financial experts for their AI achievements and potential. For each stock discussed, we’ve included information on hedge fund sentiment and organized them based on the number of hedge funds holding them in Q4 2023, illustrating their popularity and significance. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
Wall Street Picked These AI Stocks for 2024
13. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 77
YTD Performance as of March 7, 2024: -4.4%
California-based Palo Alto Networks, Inc. (NASDAQ:PANW) provides products and solutions for the cybersecurity industry. Palo Alto Networks, Inc. (NASDAQ:PANW) has more than doubled in value over the past 12 months as the company is seen as one of the top artificial intelligence players, given its array of cybersecurity offerings.
Wedbush analyst Dan Ives is on record terming Palo Alto Networks, Inc. (NASDAQ:PANW) the “Messi” of AI insisting the market is yet to recognize its full potential.
“And while we recognize this stock is in the penalty box, Palo Alto is a core name in the cybersecurity sector to play the emerging cloud and AI trends we see on the horizon,” Ives at Wedbush writes.
Despite lowering his Palo Alto Networks, Inc. (NASDAQ:PANW) price target from $425 to $375, Wedbush analyst Dan Ives maintained his outperform rating.
According to Insider Monkey’s database, 77 hedge funds held a stake in Palo Alto Networks, Inc. (NASDAQ:PANW) ‘s stock in the fourth quarter. With 464,942 company shares worth $137.102 million, Alex Sacerdote’s Whale Rock Capital Management was the most significant investor in Palo Alto Networks, Inc. (NASDAQ:PANW).
Here is what TimesSquare Capital Management said about Palo Alto Networks, Inc. (NASDAQ:PANW) in its Q3 2023 investor letter:
“Across the Information Technology universe, we seek companies possessing differentiated capabilities, products, and services. Palo Alto Networks, Inc. (NASDAQ:PANW) supplies network and cloud-based security solutions to enterprises, service providers, and government entities. The latest quarter was mixed with the company falling shy versus the Street on billings, in line for revenues, and outpacing earnings. Palo Alto’s updated guidance was materially ahead of lowered Street expectations. Nevertheless, its shares pulled back by -8%.”
12. Intuitive Surgical, Inc. (NASDAQ:ISRG)
Number of Hedge Fund Holders: 82
YTD Performance as of March 7, 2024: +16%
Intuitive Surgical, Inc. (NASDAQ:ISRG) is a robotics company that aims to revolutionize the healthcare sector by using artificial intelligence-powered…